Insights: Doing taxes on time, volatility is normal, odds + Madame Clicquot
Good reads:
?
·???????? Weekly Investment Strategy
·???????? Seafood, without the sea
?
?
?
Best quote of the week:
?
“I am a slow walker, but I never walk back.” – Abraham Lincoln
?
?
?
In the media:
?
Great chat (as always!) with Jenna Dagenhart and Asset TV Canada. We talked about charitable giving, some of the potential positives for markets over the near-term, and some important year-end tax considerations for investors. Watch the full interview here:
?
?
?
?
Best soundbite of the week:
?
Are you a late tax filer every year? Well, you may want to overcome your tardiness and file on time. Why? The Canada Revenue Agency (CRA) is charging higher interest rates on overdue taxes, raising the risk of heavier costs if a taxpayer makes payments late or is later reassessed.
?
“Proposed changes to the general anti-avoidance rule (GAAR) extend the period the CRA has to reassess a tax return, giving the agency more flexibility to audit past returns. And the expanded trust reporting rules, the underused housing tax and the proposed mandatory disclosure and notifiable transactions regime give the CRA more information about taxpayers […] In January, the CRA will begin charging 10% interest on current or outstanding overdue taxes, up from 9% in the current quarter. The interest the CRA charges on overdue taxes is based on a prescribed rate, tied to the yield on Government of Canada three-month Treasury bills plus four percentage points, and recalculated every quarter.” – Investment Executive article
?
?
?
Best visuals of the week:
?
It’s easy to get focused on the day-to-day movements in the market when you’re constantly bombarded by sensationalized news and social media posts. As they say, good news doesn’t sell papers.
?
However, as an investor, one of the worst things you can do is to focus on short-term fluctuations.? Bad months can (and do) happen, but they don’t have a lasting impact if you’re a long-term investor owning quality investments.
?
Below is a great chart that shows the movements of the market on a monthly basis (blue bars).? They seem pretty erratic when viewed from a month-to-month perspective, but over the longer-term, they mean nothing. As you can see with the yellow line, the TSX has produced a cumulative return of 47% over the last 5 years, despite more than half the monthly returns in 2023 being negative.
?
?
?
If you take an even longer-term view, the results are substantially better. Below is a great chart from Bespoke Investment Group that shows the longer you’re invested, the better chance of success.
?
According to Bespoke, the odds of the S&P 500 being up over any one-month time frame have historically been 62.6%. Over a year, the odds of being up jump to 74.6%, and over eight years, they jump to 97%. Since 1928, all 16+ year time frames have seen positive returns.
?
?
领英推荐
?
?
I’d love to hear from you:
?
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?
?
Send me your question, and I’ll include it as a topic in an upcoming newsletter: [email protected].
?
?
?
Beyond the markets:
?
?
If you plan on celebrating the upcoming holidays with some champagne, this week’s fun facts are for you.? I recently learned that Veuve Clicquot champagne has quite an interesting backstory.
?
In 1805, French women did not have the right to vote or open bank accounts in their own name (just to name a few restrictions at the time). However, none of that appeared to bother Barbe-Nicole Ponsardin Clicquot (more commonly known as “Madame Clicquot”). She was widowed in 1805 and took over her late husband’s failing champagne business and completely turned it around.
?
Here are some interesting facts about "la grande dame of Champagne":
?
·???????? Over the course of her life, Madame Clicquot took a business that was barely selling 10,000 bottles a year and turned it into a business that was annually exporting 750,000 bottles of bubbly at the time of her death. Today, Veuve Clicquot is said to produce 1.5 million cases of wine each year.
·???????? Her namesake champagne house, Veuve Clicquot, is French for "widow Clicquot."
·???????? When her husband was alive, it was called Clicquot-Muiron et Fils ("Clicquot-Murion and Son"), and was not only a winery, but a bank and trading post as well.
·???????? Part of the champagne process leaves behind dead yeast cells, called lees, that make the wine look cloudy. Madame Clicquot devised the riddling rack, which stored bottles at an angle, allowing all the lees to collect in the cap over time and making them easier to remove. As a result, she could produce bottles much faster than her competitors. The method is still used today in many champagne houses.
·???????? Madame Clicquot created the first recorded single-vintage champagne.
·???????? Winemakers have long seen comets as a favorable sign that they’ll have a good harvest and a good vintage. For the majority of 1811, the Great Comet (a.k.a. C/1811 F1) burned brightly in the sky. To commemorate it, Madame Clicquot named her 1811 vintage “The Year of the Comet," and even added a star on the cork. This vintage has been called "the first truly modern champagne."
?
Source: Mental Floss
?
?
?
Thanks for reading, and I wish everyone a great weekend!?
?
Cheers,
Kim
?
Kim Inglis, BCom, CIM, PFP, FCSI, RIAC
Portfolio Manager
?
T: 416.777.6417 (Toronto)
T: 604.654.1160 (Vancouver)
T: 250.979.1803 (Kelowna)
TF: 1.877.363.1024
?
? ?
?
?
?
?
?
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.