Blog - Frost Wealth Management

Newsletter & Updates

 

One of the biggest challenges that many investors face, is understanding the reports and statements that update your portfolio's performance. There are just so many different ways of reporting and so many different numbers. How do you know how your money is really doing?

With the changeable nature of financial markets, there are always going to be peaks and valleys along the way. What is important to know, is how much money you put in (invested capital) and where you are now (market value). So why do so many statements list book value? What is it-- and why do I need to know?

I recently discovered this great 5 minute video from Edgepoint that clarifies the confusion. With their permission, I have shared the link below:

 

Decoding your investment returns 

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Tax Highlights from the 2019 Federal Budget

Reprinted with permission from CI Investments

 

On March 19, 2019, federal Finance Minister Bill Morneau tabled the Liberal government’s highly anticipated budget – the final one before the October 2019 election.

After accounting for Budget 2019 proposals, the budgetary balance is expected to show deficits of $14.9 billion in 2018-2019 and $19.8 billion in 2019-2020. Over the remainder of the forecast horizon, deficits are expected to decline gradually from $19.7 billion in 2020-2021 to $9.8 billion in 2023-2024. The federal debt-to-GDP ratio is also expected to decline every year over the forecast horizon, reaching 28.6% by 2023–2024.

Budgetary revenues are expected to increase by 6.7% in 2018-2019. Over the remainder of the forecast horizon, revenues are projected to grow at an average annual rate of 3.5%, in line with projected growth in nominal GDP.

There were no changes to personal or corporate income tax rates.

The following is a summary of tax changes announced in the budget. Please note that these changes are proposals until passed into law by the federal government.

 

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Check Your Mailbox

HollisWealth mailed out T5008 forms and gain/loss reports directly to clients in separate envelopes at the end of February.

Please do not discard these documents!

You will need the book value from the gain/loss report, along with the T5008 or RI-18 in order to complete your 2018 return.

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For this post, I'd like to share some invaluable insights into events that impacted financial markets in 2018 and how things are looking for the year ahead.

 

This commentary comes from IA Financial Group's Senior Vice President and Chief Economist, Clement Gignac:

 

Special edition:

 

After the worst performance in 10 years, the stock market should perform well in 2019

 

Economically speaking, 2018 was marked by continued economic expansion south of the border for a ninth consecutive year. GDP growth was nearly 3% and the unemployment rate is at its lowest in almost 50 years.  

However, the year was markedly less favourable for financial markets. Despite an exceptional rise in U.S.

business profits, the Fed’s decision to continue normalizing its monetary policy and the escalation in U.S.‐China trade tensions have created a highly volatile environment on Wall Street. In fact, there were more than 80 sessions showing daily fluctuations exceeding 1% compared to barely eight in 2017. The risk premium on corporate bonds also increased substantially last quarter from an unusually low level.

 

Read more...

 

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2018 Review

Investors are having a hard time adjusting to central bank tightening, trade war rhetoric, and a global growth slowdown. This has led to sharp valuation compression. Almost 90% of all global asset classes have generated negative returns, the highest proportion recorded in over a century. Meanwhile, cash is outperforming global equities and bonds for the first time since 1994. So, it seems fair to say that 2018 has been a tough year.

 

2019 Outlook

 

If excessive monetary tightening, escalating trade wars and a growth slump form the basis for worry, then the investment outlook for 2019 is beginning to brighten:

§ U.S. monetary authorities have signaled that they will slow their pace of tightening, while other major central banks push out the date for when they might start their respective tightening cycles;

§ The Sino-U.S. trade war appears to be de-escalating, the USMCA has been signed and the largest bilateral trade deal in history, between the EU and Japan, goes into effect March 2019;

§ A global recession seems unlikely over the next year. Ongoing growth will be aided, in large part, by the world’s two largest economies - U.S. and China.

 

The Big Picture

A look back at 2018 and outlook for 2019

 

Clement Gignac, Senior VP, Chief Economist

iA Financial Group

 

According to Deutsche Bank, close to 90% of combined bonds, equities and commodities indices are posting a negative YTD return. A first since 1901...

 

Read the full article

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2018 has been a year of growth and change at Frost Wealth Management.

We are so excited about how far we have come-- and even more excited about what's still to come. 

With HollisWealth joining the Industrial Alliance Securities Inc. family came many changes-- many of them behind-the-scenes. Now that we have all the building blocks in place, we are looking forward to delivering exceptional service and improving the client experience.

We value your input and welcome your suggestions to help us achieve of goal of best-in class. Let us know how we can make your interaction with reports, technology or staff better and we will strive to improve.

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