A few topics our newsletter touches on this month:
- Our Thoughts: Vaccine Rollout & Strong Earnings
- Interesting Reading/Listening: Disruptors, Global Insight Monthly, COVID-19 vaccine appointments, 2021 Federal Budget
- Financial Health Check-up
Our Thoughts: Vaccine Rollout & Strong Earnings
It was another strong month for global equity markets with many oscillating near all-time highs. The U.S. central bank provided an update on its outlook last week. Its messaging around inflation and dovish approach to monetary policy was largely consistent with what it has been telegraphing for some time. This stood in contrast to the Bank of Canada, which the previous week indicated it would begin to incrementally withdraw some stimulus by reducing its purchases of government bonds. As a result of the divergence between the two central banks, the Canadian dollar has been notably strong of late, reaching a three-year high of USD$0.82.
By the numbers (April): The TSX jumped 2.4% while the S&P 500 rose 3.1% (5.3% in US dollars). Europe, Australia & Far East index (EAFE) was up 0.5%. The Canadian bond universe was up 0.1%.
What we are watching:
COVID trends - it appears the third wave in Canada is peaking, vaccination roll-out continues apace with >30% of Canadians having received first dose. Vaccination rate
- slowing in US, however due to higher vaccination rates case numbers are dropping substantially there. Global growth momentum generally is on the upswing as vaccination roll-out continues.
- Positive corporate earnings continuing with most companies handily beating expectations. We are expecting many dividend increases this year in our holdings after companies being on hold last year.
Interesting Listening/Reading
- Disruptors – a great, dynamic ~30 min RBC podcast hosted by SVP John Stackhouse about re-imagining Canada’s economy in a time of unprecedented change. Here are this month’s episodes (available on Apple Podcasts, Google Podcasts, Spotify or Simplecast)
- To check out our Global Insight Monthly, find the link on our website here. You can also view the weekly/daily editions on the same page.
- From RBC Economics: Canadian retailers better placed to weather COVID third wave
- Find out if you are eligible to book your vaccine appointment (Ontario) here.
- Latest summary of the state of COVID vaccination in Ontario summarized in this CP24 article.
- We sent this out via e-mail, but in case you missed it, we wanted to once again link to this good summary of the key tax items in the 2021 Federal Budget.
Financial Health Checkup:
With so many of us housebound due to COVID, it’s a good time to revisit your financial planning goals and will & estate planning. If you would like to book a consultation to discuss updating your plan please reach out to book a meeting. We are available for client calls by phone or Webex video conference
Our team is here for you
Regards,
Mark, Peter, Sarah, Corinne & Nathalie
Gallivan Wealth Management Team