RBC Global Insight: February 2025
I am pleased to share the latest investment strategy report from RBC Wealth Management—Global Insight, which provides our current thoughts on asset classes, the economy, and timely issues that impact investment strategy.
Tariffs’ leverage extends far beyond trade
When it comes to investing, we must look beyond labels and focus on the economic realities that are driving decision-making.
Global equity: Phase detection
Paying close attention to the internal conditions that we think speak to whether stocks have the ability to keep advancing.
Canada regional focus
Despite potential headwinds, we are generally constructive on Canadian markets, though we expect less outperformance in credit.
Global fixed income: The Fed breaks from the pack
Global yields are likely to trend lower while U.S. yields could remain elevated.
U.S. Tariffs: Information & Resources
With the ongoing headlines of U.S. President Trump’s unprecedented decision to impose tariffs on key trading partners, including Canada, many investors likely have questions and concerns on the impact this may have on the economy, global markets, and their own portfolios and financial plan.
While it is hard to know precisely what the future has in store, we believe maintaining a disciplined investment strategy focused on the long-term while avoiding knee-jerk reactions to near-term headlines is the most prudent approach. Our portfolios remain diversified across asset and sub-asset classes to help navigate a wide range of economic scenarios. Please find several articles on this top below,and know that we are always available to discuss in more detail if you have any specific questions or concerns.
Ø RBC Economics: How U.S. steel and aluminum tariffs would impact Canada’s economy
Ø RBC Wealth Management: Canada confronts U.S. protectionism.
Ø RBC Economics: Playbook To Measure A Tariff Shock
Ø RBC Global Asset Management: Navigating the uncertain waters of tariffs (Video)
Ø RBC Capital Markets: Macro & Industry Perspectives
2024 RRSP Deadline
2024 RRSP Contribution Deadline
The RRSP contribution deadline for the 2024 tax year is March 3, 2025. Your contribution limit for 2024 is 18% of your 2023 earned income, to a maximum of $31,560, with certain adjustments (e.g. less any Pension Adjustment appearing on your T4 tax slip and plus any unused contribution room carried forward from previous years). Please check your latest NOA or refer to the MyCRA website to confirm your exact contribution limit.
For additional information and contribution options, please click the link below.
Canada's Housing Market Update
Sellers set the tone as 2025 rolls in
Early reports from local real estate boards showed a surge in new listings in January in several of Canada’s largest major markets led by Vancouver, Calgary, Toronto, and Montreal.
The influx of properties put for sale helps further rebuild inventories, which had plummeted to historical lows in some markets during the pandemic. A wider selection, in turn, relieves pressure on buyers to bid aggressively, keeping prices in check.
We expect little in the way of price appreciation overall in Canada in 2025. We think the trade uncertainty will add a layer of caution.
Strategies to take control of your wealth
You can't control tax rates, but you can strategize where your wealth goes
When faced with high inflation, fluctuating interest rates and higher taxes, Canadians can feel the pinch. But there are things you can do to take control of—and build confidence in—your financial future. Paying taxes is one of life’s certainties, but you can still make the most of your income by investing in tax-advantaged plans, like a Tax-Free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF).
Complimentary Second Opinion Service
Helping your family build, manage and protect your wealth
If you’re a successful entrepreneur, part of a large family, or a high net-worth retiree/pre-retiree, you may have to manage financial issues that others don’t; This could include inheritances, assets in trust, complex tax planning, or a family vacation property. Perhaps you’d like to put your finances into greater context with your family’s savings, estate and business planning goals. Whatever your personal situation, we are here to help, with a comprehensive review that can ensure your wealth remains “all in the family.”
Our review process typically looks at both your investment portfolio and your overall wealth planning. This way, we can assess your financial situation in the context of your personal tax situation, savings goals, the time you have to invest and other factors such as your insurance coverage or charitable intentions.
This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ®Registered trademarks of Royal Bank of Canada. Used under licence. © 2022 RBC Dominion Securities Inc. All rights reserved.