| A few topics our newsletter touches on this month:
Our Thoughts: “The Most Anticipated Recession Ever” Healthy bull markets are said to traditionally climb a “wall of worry,” and that seems to capture the investor mindsight today. Despite higher interest rates and what has been called “the most anticipated recession ever,” the consumer has stayed relatively healthy and the economy has continued to grow, albeit slowly. Markets in turn have been on a roll, reassured by ongoing U.S. economic strength and improving corporate fundamentals. This is a great example of why market timing rarely is successful. Going forward, market valuations may restrain near-term upside potential unless there is corresponding earnings growth. Our focus continues to be on strong businesses that have healthy cash flows to pay a rising dividend. In the last quarter alone, there were fourteen dividend increases in the Canadian portfolio. The bond market had a nil return last month as persistent strength in the labour market kept both the US and Canadian central banks from cutting rates, despite signs of inflation slowing. That said, yields are still higher than what we have gotten used to over the last decade, provide reduced volatility to a portfolio, and will look attractive when central banks begin cutting rates. By the numbers (February): The TSX was up 1.8% and the S&P 500 was up 5.3% in U.S. dollars (6.4% in $CAD). The Europe, Australia & Far East index (EAFE) was up 2.7%, while the Emerging Markets index was up 5.7%. the Canadian bond market was flat. Interesting Listening/Reading
Federal Budget out April 16th : This will be a much anticipated budget as economists have been writing a lot recently about Canada’s declining income per capita (our population has been increasing faster than our GDP) - per capita GDP is a key measure of wealth for program affordability. International Womens Day 2024: International Women’s Day this Friday March 8th is a day for everyone to reflect on progress made to date towards equality, to celebrate acts of courage and determination by women around the world and to highlight actions we can all take to advance the representation of women. Gallivan Wealth Management is donating to the Society for Canadian Women in Science and Technology (SCWIST), a non-for-profit society specialized in improving the presence and influence of women and girls in Science, Technology, Engineering and Mathematics. Peter (pictured below) was invited to chair the national conference of AIESEC in Canada, of which RBC Future Launch is a national sponsor. AIESEC is a global student-led organization that focuses on leadership development and facilitates an international exchange program. Peter is proud to be both an alumni of AIESEC and a representative of the RBC Future Launch initiative.
Regards, Mark, Peter, Sarah, Corinne and Nathalie Gallivan Wealth Management 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. ® / ™ Trademark(s) of Royal Bank of Canada. Used under licence. © 2024 RBC Dominion Securities Inc. All rights reserved. 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 strategies and advice in this report are provided for general guidance. Readers should consult their own Investment Advisor when planning to implement a strategy. Interest rates, market conditions, special offers, tax rulings, and other investment factors are subject to change. 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. ® / ™ Trademark(s) of Royal Bank of Canada. Used under licence. © 2024 RBC Dominion Securities Inc. All rights reserved. |
