November 2019

 

Global markets look poised to finish the year strongly.  While recent quarterly earnings met subdued expectations, optimism that trade and central bank policy will reinvigorate global growth remains. As we head into the final quarter we remain squarely focused on fundamentals and their impact on this future narrative. 

Will trade resolution materialize?  Will central banks continue their accommodative stances? And most importantly, will positive outcomes in these areas support rekindled growth and further upside for global equities? 

In acknowledgement of the year behind us and forward expectations, we remain vigilant and optimistic as we enter the holiday season.

The Rates of Change

The Bank of Canada looks poised to join the rate-cutting party. It’s been a decade since this many central banks were in easing mode; almost 40 have cut rates since the summer. The Bank of Canada has been a notable holdout, and it kept rates steady again in Wednesday’s latest monetary-policy decision. But with trade uncertainty going on (and on), the Bank hinted it’s more concerned that weakness in manufacturing and business investment will spill over into other sectors of the economy. Many economists are saying the Bank’s tone bolsters the view that the Canadian central bank is likely to cut rates early next year.

The US Federal Reserve, meanwhile, cut rates for the third time this year—as widely expected—and signaled it might take a breather.

Fun Fact
By holding firm at 1.75%, Canada now has the highest central bank interest rate in the industrialized world.

Lest We Forget

Barely twenty years after the end of the Great War, the autumn of 1939 saw the recommencement of hostilities in continental Europe. Now 80 years later, we are still witnessing armed conflict around the world. A glimpse of the average daily news feed will illustrate deep fractures that decades have failed to mend. November 11th remains an important annual reminder of the darkest side of human nature and the consistent need to remain vigilant against it. Many of our families have personal stories that relate to the many wars of the 20th and 21st century and it important that we keep those memories alive so that future generations need not repeat the mistakes of the past. Lest we forget.

In the Shopping Cart: Vertex Pharmaceuticals

Cystic fibrosis is the most common fatal genetic disease affecting Canadian children and young adults. At present, there is no cure.

Vertex Pharmaceuticals develops and distributes small-molecule drugs focused on the treatment of Cystic Fibrosis – a rare disease characterized by its impact on the lung. Through its treatment options, Vertex has built the leading franchise of genetic therapies that focus on treating the gene defects that cause Cystic Fibrosis. With three treatments already being sold and a third combination therapy just approved, Vertex stands on the cusp of a huge feat – being able to offer effective treatments to the vast majority of the diagnosed population. Their business is supported by strong sales and profit growth, low debt and enough cash to support long term pipeline development to provide future catalysts.  We believe Vertex presents a compelling opportunity with attractive long-term upside.

Year-End Tax Planning Checklist

Effective wealth planning takes place throughout the year. However, you can take some key steps before the end of the year and early in the new year that can make a positive impact on your overall finances, particularly from a tax perspective.

While the following list is not exhaustive, here are some time-sensitive items to look at now for your 2019 tax return.

 
Chernick & Associates Wealth Management Group

Richardson GMP Limited
Guinness Tower
1055 West Hastings Street, Suite 2200
Vancouver, BC  V6E 2E9

Tel.: 604.640.0400
Toll Free: 1.866.640.0400

www.ChernickandAssociates.ca