Just a big picture post, as we talk to clients about this. Following the recent bout of volatility, the S&P/TSX Composite is now ~5.1% off its all-time highs. We all know that sharp retracements within short stints are generally uncomfortable but is part of the “cost” of staying invested.
Two things:
1. Market draw-downs are normal course
2. The S&P/TSX Composite is effectively flat year-to-date, bringing us back to mid-December 2024 levels.
From a sector perspective, 8 out of 11 sectors are sitting in negative territory on the year except for Materials, Communication Services, and Utilities in Canada. This is why our portfolios are diverse: across sectors, but also across Canada, the US and international. For the first time in a while, US performance has been less than in Canada. This might seem counter-intuitive with all the tariff and trade discussions, however, it’s the large US tech companies that have seen larger corrections: Canada does not have a large cap technology sector, so was less effected… That’s the value of a diverse portfolio.
Onto more mundane but important matters, as we enter tax season, we are available to send slips. Your accountants can also access our on-line portal if you provide them with consent, and you can download them online. We can generate these for you as well, and other forms or transaction summaries customized, as per your requests.
Some of those tax slips have been affected, in light of the recent capital gains changes by the new/current government, pausing proposed increases. The CRA has extended the deadline for issuers to provide data required for certain tax slips. This impacts the delivery of the following RBC tax slips:
- T3/RL16/NR4s
- T5013/RL15/NR4s
Mailings are expected to begin approximately mid-March and continue throughout the remainder of the month until completion, as well on online. So many of you that might have already downloaded tax packages: there remains some outstanding slips.
Speaking of the government. I have an easy prediction this week: there will be a dissolution of the government this weekend, and an election date will be announced. No predictions yet on the eventual winner, but it’s been an astonishing change in the political climate since the introduction of tariffs and other trade measures. While it was clear a few weeks ago the outcome, I suspect this will be a tightly fought campaign with a lot at stake.
Have a great weekend.
