A letter from the Chairman of BlackRock to investors signaled to a new era for the standard investment portfolio. Last month, we touched on weakening investor confidence and a demand for higher compensation from the U.S. Treasury Bonds (known as the risk-free rate). Below is a graph showing tighter spreads between the compensation of U.S. Investment-Grade Corporate Bonds compared to U.S. Treasury Bonds. Credit spreads can change because of strong investor demand, low corporate default rates, and strong corporate balance sheets. Tighter spreads today may reflect a moving standard, not stronger credit.
Larry Fink’s 2025 Annual Chairman's Letter to Investors
BlackRock’s global presence is staggering, with $11.6 trillion in assets under management. Fink emphasizes the importance of diversification toward alternatives and risk-adjusted returns in an evolving financial ecosystem.
“Generations of investors have done well following this approach, owning a mix of the entire market rather than individual securities. But as the global financial system continues to evolve, the classic 60/40 portfolio may no longer fully represent true diversification.”
Toronto home sellers are slashing prices, offering big discounts
Toronto’s housing market isn’t just cooling – it’s recalibrating. With inventory at multi-decade highs and buyer confidence tempered by broader economic uncertainty, the current environment is distinctly buyer friendly. While some are using this moment to negotiate favourable terms, many remain cautious, balancing near-term opportunity against long-term financial clarity.
“The economic uncertainty sidelined many buyers, right as sellers started to list more properties. That’s left more room to haggle over the price for the buyers who remain.”
Toronto’s Deep and Rich Performing Art’s Culture
Toronto stands as a beacon for performing arts, offering a rich tapestry of experiences that reflect its vibrant and diverse cultural landscape. Whether you are a theatre enthusiast, music lover or a true artist, the city promises a summer filled with unforgettable performances and experiences.
Why There Will Never be Another Buffett
This month, Warren Buffet announced he is stepping down as CEO of Berkshire Hathaway. As one of the most successful investors in history, this article goes over the uniqueness of the person, the period and the package.
“Ever since 1942, when he bought his first stock at age 11, he has devoured information about companies, reading corporate reports the way most people listen to music.”
Read here
Lauer Private Wealth at RBC serves as the investment office for a select group of institutions and families. The practice is centered on multi-asset portfolio management, estate structuring, and intergenerational wealth architecture.
If you enjoyed this edition of Our Insights, please feel free to connect or share, thank you for reading.
Works cited: BlackRock, Bloomberg, BNN, ChatGPT, The Daily Shot, The Wall Street Journal, ToDoCanada.