Tag: Insights

The S&P 500 has experienced a remarkable surge in 2024, delivering one of its strongest performances since 1928. While past performance often fuels optimism, the critical question for investors looking at the year ahead is whether this bullish trend can sustain itself for the broader equities market.

Looking back on 2024

Year-ahead-forecasts in December 2023 about what 2024 would bring for investors were dismal, even after a year of more than 20% returns for the S&P 500. Perhaps what played a part in the pessimistic outlook for 2024 was the political uncertainty and heightened emotions of an election year.

However, historical data suggests that such concerns are often overblown. The S&P 500 has not only shown resilience but posted a noticeable positive performance in 83% of election years. Any post-election losses tend to be retraced by end of year. In fact, the index generously retraces its losses, typically trading higher into the year-end and into the new year, up to two months following a U.S. election.

As of Dec. 13, the S&P 500 is up 27%. If it finishes up over 20%, this will represent a spectacular two-year run for the S&P 500.

Heading into 2025

Looking ahead, forecasts suggest growth potential of the S&P 500 at 9% by the end of 2025. While the outlook remains positive, the bull market could face challenges in mid-2025. Risks such as a potential economic slowdown, tightening monetary policy or geopolitical uncertainty could lead to a market pullback. And with the S&P at an all-time high currently, investors may be nervous that a market correction is on the horizon.

What does this mean for the broader equities market?

The S&P 500 is a widely used benchmark for tracking trends in the broader equities market due to its breadth and diversity. For this same reason, it provides a simplified view of market performance at best, obscuring trends within specific sectors of the economy.

Market movements are complex and driven by a combination of factors, including but not limited to domestic and foreign policies, interest rates, geopolitical events and corporate earnings. These elements often interact in ways that make it difficult to isolate the impact of any single variable—such as an election cycle.

Recently, stocks have rallied amid expectations that tax cuts, deregulation and increased government spending will spur economic growth but the long-term impact of policies such as tariffs, foreign relations and fiscal spending remains uncertain.

The complex and unpredictable nature of financial markets means that growth may not be as consistent as projected, especially if key assumptions about policy or global conditions fail to materialize.

3 Investor Takeaways for 2025

1. Time in the market vs. timing the market

Investors should look at staying invested in the market for the long term and consider high-quality stocks. Investing in solid, well-managed companies provides a stable foundation for long-term growth, even during market dips or economic uncertainty.

2. Strategic portfolio rebalancing 

Strategic portfolio rebalancing can help investors to adjust sector exposure based on changing market conditions. This helps capture opportunities in sectors with favorable valuations or strong growth potential.

3. Diversification beyond equities

Investing in other asset classes beyond equities, such as fixed income or alternative investments, may help improve risk-adjusted returns and provide a hedge against market fluctuations. This approach can potentially reduce volatility and better align a portfolio with an investor’s risk tolerance and long-term objectives.

This is an important time to connect with a wealth management professional to ensure your investments are aligned with your financial objectives and that you’re on track to reach your wealth goals. Reach out to us today—we are here to assist you in making informed investment decisions and navigating the complexities of the current market landscape with confidence and clarity, ensuring you’re well-positioned to seize tomorrow’s opportunities.

Downsizing or rightsizing is a process that many face due to relocation, health restrictions, lifestyle change, or daily needs. Whether you are moving from a suburban home to a city apartment or lately became an empty nester, the challenge of giving up some of your cherished belongings in order to fit into a new, smaller, living space can be daunting.

With age most people expect that there will come a day when they will have to downsize. As their priorities shift, they may prefer to simplify their lifestyle, cut costs, or be closer to children and grandchildren. Planning ahead and assessing the new needs is crucial in order to pick the right new place and be excited about it. Looking forward to the benefits attached to this change can help deal positively with the emotional and physical stress that is involved with decluttering and moving.

To you each piece is a memory. Get some objective Help!

Moving is not easy at any stage of life, even more so when one has to go through years of accumulated furniture, dishes, pictures, and memorabilia. Luckily, you can hire professionals to help. Not only have they helped many before you and have experience estimating spaces and providing planning and storage solution, unlike family or friends, such professional organizers are less emotionally involved as they do not share your memories. They are capable of keeping an objective and practical approach while concentrating on making your new space functional.

We sought the advice of professional organizers on how to get started and make rightsizing successful.

Susan Rotter and Anna Castelli, Advanced International Organizing Professionals (AIOP) with Make Space For Life suggest to ask yourself some questions in order to be mentally ready for the process:

• What is important to me? What type of lifestyle do I want?
• How much time do I spend at home?  If you are a snowbird, a big house may no longer suit your current needs.
• Do I need space for hobbies?  Equipment for outdoor hobbies or extensive collections may require more space.
• Where do I want to live?  Consider the neighbourhood, proximity to family, amenities, transportation, type of home (house, condo, retirement home, residence).

Sheindl Rothman, MSW, a trained professional organizer (Positive Spaces) who specializes not only in downsizing but in general residential solutions and craft studios, adds:

• How much of your home do you really use? Do you use some rooms only rarely (or never!).
• Is entertainment still a big part of your life?
• Are you keeping up with home/garden maintenance? A bigger house requires more work… are you ready to exchange it for less back pain and more free time?
• Where to live? Begin by deciding where you’d like to move. Would you like to move to a warmer climate? Move closer to your children? Some opt for a pied à terre in one place and a principal lodging elsewhere.
• Buy or rent? You have the option of purchasing your next home (condo, duplex, smaller house) or renting an apartment. There are advantages and disadvantages to both. Some opt for a Senior’s Residence and are very happy to have done so.

All professionals recommend having a floor plan of your new space with room dimensions to allow you a more exact understanding of the living and storage space you will have. Being able to visualize your new space based on actual numbers and realizing that every little corner should have a purpose or function will help with the decluttering and downsizing of your personal belongings.

Where to start? 

Anna and Susan recommend to always keep your goals in mind and work on one room at a time.  Decluttering will as well help with the preparation to sell your home. Sorting and purging through your belongings will give you the opportunity to truly evaluate and ask yourself the following:

• Do I really need this item?
• Is the item in functioning order?
• When was the item last used and will it fit in my new space?

In Sheindl’s experience decluttering decisions depend on your interest in certain activities. If you foresee entertaining less or not at all, you may wish to pass on your good china, crystal glasses, and Sterling silver cutlery. If you will be cooking less or not at all, find a new home for some of your pots and pans. If you’re no longer golfing, skiing, or camping, well, it’s clear what to do.

How can I get rid of the stuff I’m not taking with me?

Once you’ve decided what you’re going to take with you, begin the process of clearing out the rest. There are many ways to do so, depending whether you wish to gift items, sell, or donate. You’ll probably want to begin by asking your children, grandkids, cousins, nieces and nephews, and friends if they want anything special. If you wish to sell certain items, allow yourself enough time and prepare to accept considerably less than you initially paid. You may call a dealer or post certain items online. If you decide to donate, you may contact a charitable organization who picks up, or post online to organizations such as Freecycle.org, or other free sites.

Professional organizers can help their clients with both selling and donating. Some people hold a Moving Sale in their home. There are professionals who can manage this, as well as sell fine art.

How to make smart purchases

If you’re shopping for new furniture, choose quality over quantity and opt for multipurpose furniture pieces that can offer additional storage. Pick durable fabrics, since smaller spaces must be flexible and fulfill a double duty as an office, extra bedroom or play/work space.

Stay positive and calm.

The biggest challenge is letting go emotionally and practically. Getting overwhelmed and feeling anxious won’t help at all. Stay as calm as you can. Eat well, exercise, meditate, use positive affirmations throughout the process, and make time for socializing and fun. Get help if you like, from family, friends, and/or a Professional Organizer with experience in downsizing and moving. A good Professional Organizer will provide a confidential, non-judgmental, and supportive service. A moving company can also pack for you, but they will not help you sort through your belongings.

Start early! The earlier you begin the process, the easier your move will be. Try to follow an ecological approach and resell, donate, or recycle your objects so they can find new homes outside the trash.

Always remember that it is also a journey into an exciting new beginning!

We would like to share some reflections and big-picture lessons from 2019 to help stay on target in the New Year.

 

Stick to the Balanced Portfolio Philosophy

One of the main reasons our clients know they can trust us is because we stick to our Balanced Portfolio Philosophy. Our Wealth Management Advisors apply this philosophy by creating plans that fit into your present and foreseeable financial situation, your income, your tax, insurance, and estate needs – all suited to personal risk guidelines.

One of the big lessons from 2019 is that it is never too soon to ensure that a portfolio is well set-up for the next economic downturn. Whether that means something on a personal level such as unexpected emergencies, or something societal like weak markets. Paying off debts and building savings can help relieve any unforeseen additional strain on one’s finances. In the meantime, our Wealth Management Advisors will continue to do their best to design custom portfolios that prepare you for any eventuality.

 

Conscious Spending

The tough reality of having to budget and save is that it means we must live within our means. This is something that, in a world of encouraged consumption, can be difficult to confront. One place to start is with the concept of conscious spending. The idea is to encourage oneself to think critically about all purchases and ensuring that if a purchase is needed, it is obtained at the best value.

Average household debt in Canada is 170% of disposable income, meaning that most Canadians spend much more than they make. We have reviewed paying down debt in the past; conscious spending, and thereby leaving as much as possible for savings and paying down debt, is among the most important tactics.

Conscious spending can be anything as small as preferred purchase of “on-sale” items, a critical examination of whether taking another short trip or vacation is absolutely necessary, or evaluating the option of skipping the purchase of expensive theatre/concert tickets for a while and would it be justified in the long run.

Though it is a personal decision how to follow a conscious spending path, it can be made simpler with the help of spreadsheets that one can follow over a period of time. Whichever tools one uses, they should fit into the conscious spender’s lifestyle, while helping to shave away excess expenses and focus where money is spent. Naturally, it is essential that the money saved by spending in this manner be directed toward paying off debt as soon as possible since interest on debt itself is a huge spending sinkhole.

 

Feel Good about your Finances with Non-Financial Goals

High levels of financial stress are abundant, especially toward the end of one year and into the next. As we are dependent on money, it is important to do as much planning as possible to avoid any added stress of unexpected costs. Budgeting and saving are the two simple and valuable ways to go about it. Fancy and complex strategies aside, it is essential that all of us budget and save so that we can be less worried about the future of our finances.

Beyond that, it is important to keep in mind why we want to save, why we want to retire comfortably, and what is our ultimate goal. Accumulating savings is not the end goal. Most people’s ultimate goal is being able to spend time with family and friends, to travel, and as long as their health allows that, to be able to support children and grandchildren without missing out on the freedoms that retirement can offer. It is extremely important to keep that goal in mind as we make our way into and through retirement. Navigating the financial world can be made a little easier and less stressful if we have the help of solid professional advice and if we find ways to remind ourselves that it will all be worth it at the end.

The value of a Wealth Management Advisor is once they got to know you and your personal circumstances and goals, they use their deep knowledge and research facilities available to them to evaluate your investments and guide you.  In many instances they will counsel you to do nothing.  In other cases, they will be able to provide you with suggestions of investments that will be beneficial in a down market.  In every case they are there to answer your questions and provide you with an overview of the current market situation.

Your best bet for dealing with volatile markets is speaking about your concerns with a Wealth Management Advisor. Make sure they know how you feel and how much risk you can tolerate. They should be fully aware of your situation.  The Advisor can properly assess the potential risks and therefore set you on as safe a trajectory as possible. Historical data, good research, and a good advisor’s guidance are on your side!

How To Identify a Good Wealth Management Advisor

A good advisor should provide you with a holistic plan. This means taking every aspect of your financial situation into account. The bigger picture includes various tools: investment planning, tax planning, insurance planning, and estate planning. With proper planning, transparency, and regular communication, a Wealth Management Advisor can make volatile markets far less damaging to one’s portfolio.

In order to give good, sound advice, a Wealth Management Advisor uses your personal and financial data to create projections that illustrate how and when your financial goals would be reached. At Rothenberg Capital Management, our Wealth Management Advisors’ projections are based on sets of historical data about inflation and investment returns, combined in various formulas with how much you earn, you spend and how much you can save at various stages of your and your family’s life.

Good Wealth Management Advisors are interested in the broader plan instead of just trying to be a salesperson for a specific investment product. Rothenberg Capital Management Wealth Management Advisors are paid a base salary as well as a bonus. This means that they can focus on taking the time to spend with their clients to establish what is best for them, rather than on earning commissions. They are also therefore able to take time to research more options, communicate with clients, and stay updated with their personal circumstances.

Knowledge is Safety

With proper communication and regular contact, your Wealth Management Advisor should be able to keep you comfortable through choppy markets.

We asked some of our advisors what they do when markets get choppy and the resounding response was: think long-term. They take the time to show you the historical data of the broader market and specific investments that you own. Even while markets are doing well, it is important that Advisors complete regular portfolio reviews with their clients and use their knowledge to create clarity about which investmentsown and why. This sense of clarity is important for reducing anxiety. Market volatility is normal, but in the long term, and with a good Wealth Management Advisor, the gains on the other side of volatility are attainable.

To speak with one of our Wealth Management Advisors, email us at inforequest@rothenberg.ca or call us at 514-934-0586.

 

These 4-Rs will help you stay on track to reaching your investment goals!

 

It’s the beginning of a New Year and your investments should be a top priority in achieving financial success!

Although your investment goals are important and long term, they should be looked over regularly to help address any changes in investment strategy, based on your life changing needs and situations. These 4-Rs are key guidelines that you and your financial advisor can discuss together.

 

1. Review

What are your plans for 2018? Are you considering buying a new home, a new car, thinking of retiring, are the kids beginning or finishing university? These are just a few life changes to take into consideration when reviewing your portfolio. As far as an investment strategy, you and your investment advisor will want to look the status of your current investments and see how they are performing. How about your finances outside of your investments – mortgage, credit cards, other savings accounts? How would you react to market fluctuations? Asking these important questions and discussing them with your advisor will help ensure your portfolio is well-prepared for the future.

 

2. Rebalance

Rebalancing is an overall review of your investment portfolio in comparison to your ideal asset allocation – basically it’s finding the right mix of stocks, bonds, mutual funds, GIC’s and cash to match your risk tolerance and financial goals. Once this has been determined, the next step would be to make the necessary changes by selling and buying shares of investments to realign your portfolio to your desired target. This will be part of the review you have with your investment advisor.

 

3. Refresh

A new year is always a great time to declutter – out with the old and in with the new! In reviewing your investments, which ones have fallen behind a bit? Which have done very well and should you take some profit? Maybe it’s time to research for new investment ideas. Therefore, it is a good idea to look over the diversification of your investments, give your portfolio a good clean up, realign your goals in order to have peace of mind and move closer to achieving your financial goals.

 

4. Rothenberg

We at Rothenberg are there to help you!

At Rothenberg Capital Management, we treat all clients with the same care and respect. We are members of the Investment Industry Regulatory Organization of Canada (IIROC) as well as the Canadian Investor Protection Fund (CIPF).

Our conservative approach and personalized care means that our advisors will meet with you on a regular basis to assess performance and adjust recommendations and portfolios accordingly. Our salaried Investment Advisors are happy to spend time with you to fully discuss your own personal situation and requirements. The result is our team can be a tremendous help for you to achieve long lasting financial investment success.

 

1. Book an appointment with your advisor to discuss the 4-Rs for your portfolio in 2018.
2. Not a client yet but would like to explore some options? Have an advisor contact you at no obligation.

 

There’s reason for investor optimism in 2018 — as long as it’s tempered with caution. That message comes from Nigel Green, founder and chief executive of deVere Group. It is also part of the optimism of Rothenberg Capital Management.

While we are positive about 2018, our investors need to keep an eye on several key factors over the next 12 months that could increase turbulence.   Let’s consider the good news first. Here are Green’s top three drivers for 2018 optimism:

1. Growth puts the pedal to the metal. “Global GDP growth is speeding up,” says Green, adding that growth is balanced across the globe. “Strong GDP growth is translating into good corporate earnings growth, which supports share prices.”
2. Interest rates remain at historical lows. While the Fed and Bank of England are expected to hike rates in 2018, with rates remaining relatively low, “cash will remain an unattractive asset class, and bond yields will continue to be slender,” says Green. “We can expect this to further boost stock market indices.”
3. U.S. tax reform becomes a reality. “Tax cuts in the U.S. could help boost the American economy and stock market which, in turn, will positively impact global economic growth and global stocks,”

Now for the concerns:

1. Potential inflation. In 2018, tight labor markets could result in wage increases and, in turn, inflation.
2. Loss of free trade. Trump’s negative view of multilateral trade agreements, and its consequences.
3. A slowing China. As the country transforms into an economy based on services and household consumption, its government might become less willing to prop up failing industries and bankroll leveraged investors.