Insights: Charitable giving, industry group performance, Santa Claus rally + Andrea Bocelli
Good reads:
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·????????Weekly investment strategy
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Best quote of the week:
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“Charlie and I know a few people that have a lot of money. They get their names on buildings. And the truth is nobody loves them. Not their family, not the people who name the buildings after them. It’s sad. It’s something you can’t buy. The nice thing is that you always get back more than you give. And if you don’t give any, you don’t get any. It’s very simple.” – Warren Buffett
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In the media:
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I sat down with Jenna Dagenhart and Asset TV Canada to discuss the rally since the mid-October lows and why investors shouldn’t be surprised to see a pause or even a pullback in the near-term. We also talked about the longer-term market outlook and potential risks to the market. Watch the full interview here :
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Best soundbites of the week:
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Often when clients donate to charities, they opt for cash donations believing that “cash is king”. While a donation of any sort is amazing, there are some more tax-efficient ways of making a difference than simply giving cash:
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Many affluent individuals don’t realize that they can donate appreciated publicly-traded securities to a charitable organization and receive a zero capital gains treatment in addition to the donation receipt equal to the value of the securities donated. It’s a great alternative to simply writing a big cheque each year. – BMO Global Asset Management
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Best visuals of the week:
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Visual #1:
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The markets have rallied a fair bit since the mid-October lows, but there are a lot of questions as to whether it is a sustainable rally or if we will see a pull back.
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As I discussed in my most recent TV interviews , I think it is likely that we will continue to be in more of a sideways moving market while central banks are still in tightening mode.
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As you can see in the chart below of the 24 different industry groups that comprise the S&P 500, only four are positive year-to-date. This would indicate to me that there is still a lot of recovery to be done.
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Visual #2:
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From a seasonal perspective, December is historically a pretty good month for the stock market. As an example, the S&P 500 has averaged ~1.5% over the last 70+ years.
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As we head towards the end of the month, the markets can often experience a phenomenon known as the “Santa Claus Rally”. This is when the markets get a little boost in the last five trading days of the year and the first two in the New Year.
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There is some speculation as to why this happens. Some say it has to do with the fact that trading volumes are lower during that time period, so it takes less to move the market. Others believe it has to do with the fact that many people receive holiday bonuses and are busy spending them. Tax loss selling is the other reason. People who may have sold stock towards the end of the year are then buying them back.
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Either way, after a trying year for the markets, one certainly hopes that Santa brings a few gifts for investors.
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You’re Invited: 2023 Outlook – The Seventh Inning Stretch
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Please join us for a special Zoom webinar with Nadeem Kassam, Head of Investment Strategy for Raymond James Ltd. Nadeem will be joined by members of the Raymond James Ltd. Asset Allocation Committee, including Ed Mills, Managing Director and Washington Policy Analyst, Tavis McCourt, Institutional Equity Strategist, and Ellis Phifer, Institutional Fixed Income Strategist with Raymond James Financial.
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The team will share their outlook on the global economy and major asset classes as well as discuss the major opportunities/risks they see on the horizon and what keeps them up at night.
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Date: January 26, 2023
Time: 10:00 am PT/ 1:00 pm ET
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Contact me for a registration link: [email protected]
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领英推荐
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Report: 2022 Year-End Tax Planning Opportunities
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Our report shares important tax and financial planning moves that can help you prepare for the upcoming tax season and better align your finances with your short- and long-term goals.?Contact me for a complimentary copy of the report: [email protected]
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I’d love to hear from you!
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Do you have a question about the markets? Or perhaps you’d like to learn more about a particular financial planning topic? Maybe you’ve got a question about your own personal situation?
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Send me your question, and I’ll include it as a topic in an upcoming newsletter: [email protected] .
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Beyond the markets:
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I read an article in Barron’s about Andrea Bocelli and some of the initiatives he has undertaken with his foundation, which aims to create opportunities for disadvantaged people globally.
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According to the article, one of the most notable projects is ABF Voices Of, a multi-country initiative that creates choirs composed of children who face socioeconomic challenges. ABF Voices of Haiti started in 2016, was the pilot choir; Italy launched this summer, and one in Jerusalem is being planned for 2023.
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As Bocelli says, “The choir and the music are tools to teach them about unity in a country where they don’t know if they have a future. We want to teach them how to be stronger by working together as a group.”
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Here are some other interesting facts about Bocelli:
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·????????Bocelli has sold over 80 million albums worldwide, making him the biggest-selling singer in the history of classical music.
·????????As a child, Bocelli learned to play the piano, flute and saxophone.
·????????Visually impaired from birth, Bocelli became blind at the age of 12 following a soccer injury.
·????????Bocelli studied law at the University of Pisa and became a court-appointed lawyer after graduation. During this time, he took up playing piano in bars to finance his education.
·????????Though he has claimed opera to be his first love, Bocelli mixed arias with popular music on his recordings (a genre referred to by the press as “popera”) in an effort to expand his audience base.?
·????????With the release of his classical album, Sacred Arias, Bocelli captured a listing in the Guinness Book of World Records, as he simultaneously held the No. 1, 2 and 3 positions on the U.S. classical albums charts.
·????????Six of his albums have reached the Top 10 on the Billboard 200, and a record-setting eight, have topped the classical albums charts in the United States.
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Sources: Biography , Britannica , Wikipedia
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Publishing hiatus:
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I’ll be taking a break from writing my newsletter to spend time with family over the holidays, but I’ll be back in your inbox on January 13 to continue delivering my weekly sampling of Insights.
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Thanks for reading, and I wish everyone a great weekend!?
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Cheers,
Kim
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Kim Inglis, BCom, CIM, PFP, FCSI, CAFA
Portfolio Manager
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T: 416.777.6417 (Toronto)
T: 604.654.1160 (Vancouver)
T: 250.979.1803 (Kelowna)
TF: 1.877.363.1024
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The opinions expressed in this newsletter are those of the Financial Advisor Kim Inglis, BCom, CIM, PFP, FCSI, CAFA and not necessarily those of Raymond James Ltd. (“RJL”) or Raymond James (USA) Ltd. (“RJLU”).?Statistics, factual data and other information presented are from sources, believed to be reliable but accuracy cannot be guaranteed. It is furnished on the basis and understanding that Raymond James Ltd. and Raymond James (USA) Ltd. is to be under no liability whatsoever in respect thereof. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Raymond James Ltd. and Raymond James (USA) Ltd. financial advisors may only transact business in provinces and/or states where they are registered. Follow-up and individualized responses involving either the effecting of or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in provinces or states where the financial advisor is not registered. Raymond James Ltd. is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund. Raymond James (USA) Ltd. is a member of FINRA /SIPC . Raymond James (USA) Ltd. (RJLU) and advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. This provides links to other Internet sites for the convenience of users. Raymond James Ltd. is not responsible for the availability or content of these external sites, nor does Raymond James Ltd endorse, warrant or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same privacy policy which Raymond James Ltd adheres to.