Stick to the plan 

Volatility, economic and policy uncertainty, and tariff rhetoric are factors that have cast doubt and created a broad-based lack of confidence among investors, clients, and other stakeholders. On a year-to-date basis, major stock indexes are off their highs, down double digits, as global markets contend with tariff-related uncertainty.  While we acknowledge the consternation that is sweeping through investor minds, we remind them that it is important to take a step back, sift through the noise, and focus on long-term plans.

Click here to see PDF version

 

 

Portfolio management: Rebalancing discipline 

Rebalancing keeps asset allocation on track Asset allocation—the proportion of a portfolio invested in various asset classes such as stocks and bonds—is the primary determinant of long-term investment returns and risk. Tailored to an investor’s financial objectives and risk tolerance, a well-structured asset allocation sets the foundational strategy for a portfolio and provides expectations for potential returns as well as the level of volatility an investor is likely to experience over the long term

Click here to see PDF version

 

 

Global Insight Special Report - Canada confronts U.S. protectionism

U.S. trade policy is taking a more restrictive turn with potential implications for Canada’s economy and equity market. For investors, we believe maintaining a disciplined approach and resisting knee-jerk reactions to headlines will be the best way to navigate through what could be repeated bouts of market volatility.

Click here to see the web version: https://www.rbcinsight.com/wm/Share/ResearchViewer/?SSS_758D647B3C95896E0C5CD84C3CFD93F8

Click here to see PDF version

 

S&P/TSX Composite: Home of the “Ferocious Four”

Canadian equities have lagged relative to their U.S. counterparts on a trailing 5-, 10-, and 20-year basis. However, we believe this has been a function of U.S. exceptionalism as opposed to poor performance from Canadian equities. Digging deeper, Canada is home to a collection of industries that have historically produced returns that have been on par with the S&P 500 over long periods of time. We assess the characteristics of the S&P/TSX Composite and explain why we believe investors don’t have to stray far from home to generate attractive returns. Click here to read /documents/520123/1205330/SP-TSX+-+home+of+the+ferocious+four.pdf/6ca48b75-0107-4afe-b5e1-f9df439920c1

Federal Budget 2024

Deputy Prime Minister and Minister of Finance Chrystia Freeland released the federal budget on April 16, 2024, against a backdrop of Canadians facing the significant challenge of elevated costs of living. In light of the continued economic uncertainty, measures in the budget are targeted with the stated goal of building more affordable homes, making life cost less and growing the economy. For the full commentary, please click here.

Early 2024 tax tips

When the end of the year approaches, many individuals place a greater focus on tax planning to minimize their income tax liability.  Beyond the end of the year, however, there are tax planning strategies that often get overlooked.  For example there are tax planning strategies that may only be available early in the new year.  With that in mind, the linked article summarizes some of the strategies that have deadlines in early 2024.

How much is your chicken worth?

The inverse relationship between interest rates and the price of bonds can be somewhat confusing.  This article written by RBC Global Asset Management in December provides a good analogy of this relationship using chickens and  the number of eggs they lay.

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New Normal, New Opportunities

I very interesting and relevant read.  Click image below to access our "New Normal, New Opportunities" publication.  New Normal, New Opportunities is a compilation of articles written over the past few months by our Portfolio Advisory Group that addresses themes/trends that are developing as a result of current economic and social environment and their short & long term implications.

 

 

Reduction of RRIF minimum withdrawals for 2020

The Canadian government has introduced a number of measures to help alleviate financial hardship for Canadians brought on by COVID-19. One such measure is the reduction of required Registered Retirement Income Fund (RRIF) minimum withdrawals by 25% only for 2020. The Quebec government has also announced that it will reduce mandatory RRIF withdrawals by 25% for the 2020 tax year.

This article outlines the rules and considerations when determining whether or not to take advantage of this reduction. Click here to read.

As always, if you have any questions, please don't hesitate to call 604-535-3854

 

Market Timing - It may not matter as much as you think

"Remember, to truly invest on a pullback assumes that we will (1) be able to call the timing of the pullback, (2) actually recognize when the time comes, and (3) have the fortitude to execute when the
time arrives. In our opinion, that’s a fairly tall order that’s too tall to ask of anyone." (Tim Corney.) Read full article
This article illustrates that the long term impact on returns from market timing is relatively small and that disciplined investing for the long term is more realistic.
I have included below an image of the cycle of investor emotions.  These emotions are often the cause of poor market timing attempts and where sound advice can help avoid mistakes.
 
 

Source:  adapted from S Klarmann, 2009

 

Coping with the correction - December 2018

Global Insight: Market Brief
While the correction has frayed investors’ nerves and could persist, we don’t think it’s heralding the demise of the bull market. The U.S. economy remains in gear, and with valuations nearing a sweet spot we remain comfortable holding a Market Weight position in equities.
Read full article
 

 

Weighing the impact of U.S. steel and aluminum tariffs on Canada

RBC Economics provides commentary on the current tariffs and their potential risks:
"The U.S. looks set to impose steep tariffs on Canadian steel and aluminum products on June 1 after Commerce Secretary Wilbur Ross
announced that the temporary exemption Canada had secured would expire as scheduled. The tariffs, which the U.S. will also levy on
allies including Mexico and the European Union, will likely have a moderately negative but manageable impact on all countries involved."
Read full article
 

 

Davos 2018: Fixing a Fractured World

At 5,120 feet, Davos is the highest town in the Swiss Alps. But in late January, it’s better known as the town where some 3,000 business, government, and civil society leaders gather to consider the world’s most visible risks of the future.

Dave McKay, President and CEO of RBC, was in attendance and reflected on the most compelling issues in his report, Davos 2018: Fixing a Fractured World.  Some of the themes:

  • Cryptocurrency regulations
  •  The artificial intelligence “arms race”
  •  Reining in tech giants
  •  Potential sources of the next financial crisis

 

Volatility is back:  What the selloff means

"While the market’s swoon was jarring, we believe investors should maintain equity positions, as healthy economic and earnings growth prospects provide solid underpinnings for equities."

 

Five ways that 2017 left its mark 

RBC Economics published a report: "Five ways 2017 left its mark". The report touches on: the crypto-currency surge, muted inflation, a flattening yield curve, housing market policies, and the federal fiscal policy.
It's a good succinct read.