As the yearly returns can attest this year has been something rarely seen, SIMULTANEOUS GLOBAL GROWTH. The economic numbers from around the world have been steady as the result of monetary stimulus taking hold and elevating the markets. Not surprisingly, equities have been the place to be, because with new money being pushed into the market (quantitative easing) and zero or negative interest rates (guaranteed losing return); where else could you get a return on your investment?
With Dutch and recent French elections going according to plan and Donald Trump firing the FBI director for investigating his dealings with Russia, it’s hard to sometimes remind ourselves that the global economy matters more than politics. The health of the US economy and earnings matter more than the recent political woes and the Federal Reserve’s constant spotlight.
We decided to combine February and March in this issue as there weren’t as many headlines in February to discuss. March was a less impressive month compared to a fantastic February. In February the global economy rebounded with China leading the way. In March, we received mixed results from major economies with the exception of Germany and Hong Kong realizing strong economic results.
The Liberal government delivered its second fiscal budget after the market closed on Wednesday. Here is a simplified list of who are the winners and losers from its plan:
- Investors: Speculation for the past several weeks suggested that an increase in the capital gains inclusion tax from 50% to 66% or 75% was a possibility. No changes were made. In addition, the government has eliminated Canada Savings Bonds.
- Cities: $11 billion of previously committed infrastructure for affordable housing was announced.
This is a friendly reminder that RRSP deadline is fast approaching as the final date is March 1st, 2017.
1) Contributions towards RRSP’s deduct from your taxable income.
2) Any taxes you would have paid on your taxable income between the original and new adjusted amount would be a refund pending no other taxable events occur.