back to reality

February Newsletter - Back to Reality

Thank you to those who could attend our 2022 Outlook: Back to Reality webinar this week. We hope you enjoyed the session and would love any feedback, even the critical ones (don’t worry, our feelings will not be hurt), so please share your thoughts by dropping us a short note here.

If you could not attend, we encourage you to click below to have listen.

Quarterly Webinar: 2022 Outlook Back to Reality click here.

Access Passcode: gzW0&Y&&

Summary

  • Seth and Jason discussed why we remain positive on the outlook and overweight equities, though cautioned to expect increased volatility in 2022. We believe a mid-single-digit equity market return is a reasonable outcome to expect this year.
  • We spent much of the presentation focusing on the evolving interest rate environment, inflation outlook, and the implication for equities.
  • We also discuss why we believe interest rates will not increase as much as expected and risks to the outlook.

Our next market update webinar will be hosted in the spring. Stay tuned for details in an upcoming newsletter.

Charts of Interest

Timing the market is a mug’s game. Yes, you can get more defensive at times, but if you miss the 20 best days in the market, your annual return almost drops to nil.

s&p 500 price return chart over the past 20 years

Source: FactSet, Raymond James

Back to reality, below are the S&P 500 corrections since 1965. In an average non-recession year, the market can experience a 15.4% correction without interrupting the long-term bull market.

historical s&p 500 chart

Where do different sell-side forecasters see the fed funds target rate this year?

bank funds chart

Highest-paid female athletes. Tennis is the place to be for female athletes.

highest paid female athletes chart

Happy, happy, happy, happy, happy, happy, happy new year! Major new year’s celebrations around the world.

celebrations around the world chart

Tax-Free Savings Account (TFSA) & RRSP Contribution Reminder

TAX-FREE SAVINGS ACCOUNT

  • Annual contribution limit for 2022 is $6,000, and the cumulative total as of 2022 is $81,500.
  • Investment income generated within a TFSA is not taxable.
  • No deadline for contributions.
  • To check your TFSA contribution room, please follow the link to log on to CRA’s My Account
  • Please note, not all contributions or withdrawals may have been recorded with the CRA in a timely manner. If you have multiple TFSAs or past withdrawals, we suggest double checking the contribution room against your own records.

REGISTERED RETIREMENT SAVINGS PLANS

  • Check your notice of assessment from CRA to find your contribution limit or log on to CRA’s My Account.
  • Contribution limit is equal to 18% of earned income in the previous year minus an individual’s pension adjustment, to an annual limit.
  • Maximum contribution for 2021 is $27,830, assuming no prior year carry-forward room exists.
  • Deadline for contributions is March 1, 2022.

To request a contribution, please email us at cadence@raymondjames.ca.

cadence team shot

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