Good-bye April, Hello May! The month of May is often accompanied by the return of the adage “sell in May and go away” – suggesting investors sell equities in May and wait until November to buy back into the equity market. In fact, since 1928, the percentage of positive returns from May-October (72%) is comparable to the percentage for all rolling six-month periods (71%) and only slightly lower than for the November-April period (76%). The takeaway for investors is to remain invested to make the most of the power of compounding!
Family First
Education is the best defense against fraud. With the rapid evolution of technologies, such as generative AI, cyber criminals can defraud you through unexpected ways. It’s never been more important to ensure you educate yourself and your family on how to stay cyber safe.
- – The RBC Fraud Prevention and Cyber Safety Book – this RBC guide will help you learn how to protect yourself, your family and your digital assets.
- – The RBC Cyber Security Centre – this RBC website will help you stay informed with the latest in cyber security insights, best practices, tips, and guidelines so you and your loved ones remain safe when you’re online.
- – Real-Life Stories of Cyber Crime – RBC Director of Awareness and Education Denise Pratt sits down with Detective Alpha Chan of the Toronto Police Services Cyber Crime Unit in this 3-part podcast series. Detective Chan shares stories, warnings and tips that can help protect your business from online scams.
Market Moment
- – New record high for S&P 500 Index – Investors interpreted recent economic data as positive for stocks – soft enough to open the door to more interest rate cuts, but not so weak as to trigger fears of a hard landing.
- – Small relief in surging U.S. inflation – The headline CPI readings matched consensus expectations ahead of the release, and represent a small relief after a string of upside surprises in U.S. inflation data in Q1.
- – Canadian jobs data weaker than appeared – Canadian jobs data for April was somewhat weaker than it appeared on the surface. The economy added 90,000 jobs, which exceeded expectations, but was insufficient to keep up with population growth. The labour force grew by 112,000 in April, primarily driven by immigration.
- – Canadian inflation prints to show step down again – Next week’s Canadian April inflation report will be the last major data release before the Bank of Canada’s next interest rate decision on June 5th. Absent an upside surprise, RBC Economics thinks the soft conditions in the Canadian economy and labour markets should warrant a 0.25% interest rate cut from the BoC in June.
- – New listings ease supply-demand pressure – A healthy number of new listings came to market in April — even so, buyers remained on the sidelines across most major Canadian markets. Slower sales amid the influx of supply brought the available inventory back to pre-pandemic levels, relieving some of the supply-demand pressure in Canada’s housing market.
Team Touch
The team is looking forward to Summer Fridays. We’ll be kicking off weekends at 3pm – one hour earlier than usual – from Victoria Day through Labour Day to enjoy some nicer weather!
Don’t forget this month’s trading holidays: Canadian markets are closed for trading on Victoria Day, Monday, May 20 and U.S. markets are closed for trading on Memorial Day, Monday, May 27.
Chart Corner
