In our economic update this week, we provide our insight into the current state of the markets and look at how the jobs of the central banks have become more complex given the Russia-Ukraine situation.
In addition to our economic commentary, this week’s newsletter also includes the latest article from Jim Allworth, Investment Strategist with RBC Dominion Securities, The market, earnings, and the economy from 10,000 feet, and a video featuring Eric Lascelles, RBC Global Asset Management’s Chief Economist, Russia-Ukraine: An in-depth economic analysis.
The personal tax filing deadline is May 2, are you ready? To help you prepare, we’ve included your link to the RBC Dominion Securities Tax Reporting Guide. We recommend you keep this handy and share it with your tax professional as it features targeted tax mailing dates, a tax information checklist to support you with our reporting package, and different ways to access the information.
RBC Wealth Management Online updates! Please take the time to read the article below to see if recent updates to RBC Wealth Management Online affect you.
We hope that you have already RSVP’d to our International Women’s Day event taking place next week. Continuing on the theme of sharing the stories of extraordinary women, the second event in the Inspirational Women’s Series, presented by the Guelph Chamber of Commerce, is on March 17. Event information and your link to RSVP are included below.
As always, we end our weekly newsletter with a few good news stories from in and around our community.
Economic update
All eyes continue to be squarely focused on the military conflict in the Ukraine. Not surprisingly, volatility remains elevated given the uncertainty in the wake of Russia’s invasion, yet many equity markets outside of Europe are actually higher than where they stood prior to the recent escalation. This may seem unusual, but it compares similarly to other major military conflicts through history where global markets priced in the risks before the start of a war, only to witness some price stabilization shortly after the fighting began. Nevertheless, the situation is fluid and it is important to remain vigilant.
Our firm’s global investments team has produced an interesting update on the Russia-Ukraine crisis, with a particular focus on the impact to the European economy and implications for the region’s investment outlook. Most interesting was the discussion related to Europe’s dependency on Russia for its energy needs and the region’s decarbonization efforts, and the transformations taking place within the region that could result in a more unified European Union going forward. You can read the full article online, European Union: Cohesion amid adversity.
The other issue raised in the aforementioned report focuses on the central banks, whose difficult jobs have now become more complicated. Over the past week, the Bank of Canada raised interest rates by 0.25 percent, as was largely expected. The U.S. Federal Reserve remains poised to raise interest rates by the same amount in due course. While both central banks are expected to hike rates further through the year, the outlook on the exact path of rate increases is starting to look increasingly murky.
Elevated inflation was a headwind entering the year, but it was expected to moderate to some extent as the year wore on. Any relief is now in jeopardy because of the war and its impact on supply chains and, in particular, commodities as Russia and the Ukraine are important producers of a variety of commodities. Crude oil, natural gas, coal, wheat, corn, sunflower oil, palladium, nickel and aluminum are just some of the commodities that have moved higher, and barring any quick resolution to the situation, these prices may remain elevated and keep inflation higher for longer.
Corporations, and consumers in particular, have some capacity to handle higher costs given strong balance sheets, benefits from the economic reopening, and elevated levels of disposable income. But, it is not hard to fathom that there could eventually be a drag on global growth should price pressures mount further or stay elevated for an extended period of time. Central banks, who were predominantly focused on inflation to start the year, now have to contend with the uncertain economic consequences posed by an unpredictable conflict between the Ukraine and Russia.
The new state of global affairs may lead central banks to approach their rate hiking campaigns more gradually than originally planned. A slower pace would undoubtedly be welcomed by investors as long as the risks of recession remain relatively limited. For now, that continues to be our base case scenario.
The market, earnings, and the economy from 10,000 feet
While there are plenty of ups and downs, the rising trend of stock prices is clearly evident over the 76-year time span and remarkably consistent over 20-year stretches. Read the full article online: The market, earnings, and the economy from 10,000 feet |
During market-shaking events, we look to the path of earnings to get a sense of where equity market values are headed over the next few years.
Russia-Ukraine: An in-depth economic analysis
In
Watch the video online: Russia-Ukraine: An in-depth economic analysis
It’s tax time! RBC Dominion Securities tax reporting guide
This guide summarizes the important dates and required tax information to prepare your annual tax return. It also includes a handy list of potential tax slips you may receive from RBC Dominion Securities (depending on your investment holdings and account activity). Use this link to view the Guide online: RBC Dominion Securities Tax Reporting Guide If you have questions about 2021 tax reporting from Elinesky Schuett Private Wealth Management, please contact Brittany Beach at brittany.beach@rbc.com or 519-822-2024. Brittany will be your first point of contact for all 2021 tax package questions. In case you missed one of our recent tax articles, the list below includes the articles that we’ve shared recently.
Have questions about your personal or corporate tax situation? We have had the pleasure of working with a number of accountants in our community throughout the years and would be happy to introduce you. |
We shared your link to the RBC Dominion Securities tax reporting guide earlier this year, but as we are getting closer and closer to the tax deadlines, we thought it would be helpful to share it with you again this week.
RBC Wealth Management Online
Using the RBC app
If you are using the RBC Mobile app to access RBC Wealth Management online, you will need to make sure that you have updated your app by March 9 to avoid any disruption in accessing your account information.
Simple instructions on how to install app are available online, How to install the RBC Mobile app. Follow the same instructions to update your app.
Using a website browser
If you are using a website browser to access RBC Wealth Management Online, please note that Internet Explorer is no longer being supported. If you log in to RBC Wealth Management Online with any version of Internet Explorer, you will receive the following message: “Unsupported Browser: Please switch your browser for the best viewing experience, as Internet Explorer will no longer be supported by RBC Wealth Management Online.”
Please use another website browser option, including Google Chrome, Firefox, Opera or Microsoft Edge, to access RBC Wealth Management Online.
Guelph Chamber of Commerce, Inspirational Women SeriesWe are looking forward to celebrating International Women’s Day next week with our panel of extraordinary women, but the conversation doesn’t end there. We are thrilled to be the presenting sponsor for the Guelph Chamber of Commerce’s Inspirational Women’s Series. In their upcoming event, our very own Jennifer Goody-Brown will be interviewing Debbie Stanley, Founder of ETP Canada. For more information, please visit the Guelph Chamber of Commerce website. |
Community Corner
Each week, we like to share a few good news stories from in and around the community. We hope that they brighten your day!
- Guelph music teacher breaks barriers for students new to learning music
- U of G student group helping BIPOC students network find jobs in the community
- ‘It feels unreal’: Erin’s Rachael Karker wins bronze in Olympic debut
- Coldest Night of Year raised more $49,000 for Elora House
- Guelph community groups gather to mark International Women's Day
- Elora students look to honour hometown Paralympic hero
As always, we are available to connect with you personally. Please don’t hesitate to contact us at 519-822-2024 or elineskyschuett@rbc.com.