The slides – 2018 strategy outlook – late-stage positioning

Canadian Market Summary

January 9, 2018

  • Macro scenario for 2018. Global purchasing managers’ index [PMI] momentum moderating, EPS growth slowing to high single digits, and yields rising. Recession probabilities remain low; inflation upside could spark volatility.
  • U.S. 10-year Treasury yields. Upside risk to fair value above 3%, core consumer price index (CPI) up >2% (1.8% now).
  • U.S. dollar: more modest losses in 2018 (U.S. Dollar Index [DXY] -10% in 2017). DXY range of 90-95 (now 92) as U.S.-EU yield spreads narrow. C$ trades around US$0.80 in 1H/18.
  • WTI crude oil averaging >US$58/bbl in 2018; Gold benefits from fading PMIs in 2H/18.
  • Recommended asset mix. Equities > Bonds preference intact, but with declining conviction. Rising yields + fading PMIs = less-attractive equity risk/reward outlook.

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The tax planning advantages of permanent life insurance

The Ritcey Report

January 4, 2018

Tax planning should perform two functions: reduce your taxes while you are alive, as well as after you die. Permanent life insurance enables to cover both bases at once:

  1. You can transfer your assets into the policy, income and estate tax free.
  2. You can build up tax-deferred growth of cash inside the policy.

Key issues

When people think about insurance, they generally envision how it will help those they leave behind. It can let you pay for a child’s future college education, provide a retirement fund for your spouse, or simply make sure your survivors have the money to live the lifestyle you want for them.

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