Markets have demonstrated remarkable resilience in recent months, delivering solid first-quarter performance that has carried through to the end of April. This has transpired despite the collapse of Silicon Valley Bank and Credit Suisse in March. The market's ability to withstand such shocks is a testament to its adaptability, but it also raises questions about the road ahead.

The investor mantra "sell in May and go away" typically resurfaces around this time each year, hinting at impending seasonal market softness. Though empirical evidence supporting this adage is inconsistent at best, ongoing worries about the banking system and a decelerating global economy make this a fitting juncture to reflect on what the future may hold.

At present, economic bright spots, such as a robust labor market and the continued deceleration of inflation, are fostering optimism in the markets. This sentiment is mirrored by year-to-date market performance, with many investors hopeful that these signs hint at a soft economic landing. Moreover, there's hope that central banks will gradually ease their policies to counter slowing economic growth. Yet, the task of central banks making timely and appropriate policy decisions brings to mind the adage, "there are no new paradigms." Central bank policy often appears more an art than a science, as the pursuit of the 'ideal' interest rate often unfolds like a clumsy ballet: one keeps elevating until something inevitably crumbles.

Over the past month, challenges surfacing within the global banking system have exposed some unforeseen policy consequences of this current cycle, the full implications of which may only be evident in hindsight. It remains unclear whether this recent stress is a harbinger of more troubling future events. However, it is undeniable that the aftershocks of the mini banking crisis have magnified the headwinds for an already sluggish global economy. The decrease in bank lending and a renewed focus on balance sheet strength, in response to capital flight and asset volatility, have further exacerbated these challenges, and amplified the risk of a recession. Despite these circumstances, central banks continue to uphold a restrictive stance as leading indicators falter and economic conditions worsen—underscoring the persistent risks that lie ahead.

As we appraise the recovery in asset prices so far this year, we're vigilantly monitoring potential near-term risks. Markets are fundamentally driven by earnings and valuations. With a contraction on the horizon, we're carefully tracking how this situation might impact individual company fundamentals and the broader market. As we navigate these uncertainties, our commitment to rebalancing portfolios and identifying opportunities to improve their quality and stability remains steadfast. Our focus is to navigate these unpredictable waters with your best interests at heart, and we are always available to address any questions or concerns you may have​.

- Jack

FHSA: The Tax-Free Savings Account for First-Time Home Buyers

Buying a home is a dream for many Canadians, but the financial burden can be overwhelming. The introduction of the Tax-Free First Home Savings Account (FHSA) by the Canadian government is good news for first-time home buyers. This account allows you to save up to $40,000 on a tax-free basis and helps you save for a down payment.

The FHSA is available for Canadian residents who are at least 18 years old and qualify as a first-time home buyer. Contributions are tax-deductible, and withdrawals to purchase a first home are non-taxable, making it a win-win situation. You can hold a variety of investments in your FHSA, including mutual funds, publicly traded securities, government and corporate bonds, and GICs.

If you're a first-time home buyer looking for ways to make your home purchase more affordable, the FHSA is worth considering. With the ability to combine it with the Home Buyers' Plan, you could withdraw up to $75,000 of capital, plus any investment income and growth in the FHSA, for the same qualifying home purchase.

Richardson Wealth is working towards providing these accounts to clients in the coming months. For more information on the FHSA and to stay up to date on its availability, visit our website.

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Your Estate, Your Rules: The Significance of a Well-Crafted Will:

At Chernick & Associates, we understand that estate planning is a crucial part of securing your legacy and ensuring the well-being of your loved ones. Unfortunately, many people neglect this essential aspect, which can lead to complications and delays in the distribution of their assets. We've compiled crucial information on our website, addressing the potential pitfalls of dying intestate – without a valid and up-to-date will.

Our comprehensive guide covers topics such as the consequences of not having a will or naming an executor, the responsibilities of an appointed executor, and the distribution of your estate in the absence of named heirs. We also include an informative table detailing intestacy distribution by jurisdiction, to help you understand how the laws differ from province to province.

Don't leave your estate and loved ones vulnerable to the uncertainty of intestacy laws. Visit our website here to learn more about the importance of having a well-crafted will and how you can ensure your assets are distributed according to your wishes.

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