Insights: Markets in October, the family cottage, U.S. election + women's rugby
Good reads:
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·???????? Weekly Investment Strategy
·???????? Magnificent 7 vs. 2000s Tech Bubble
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Best quote of the week:
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“October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” ― Mark Twain
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Best visual of the week:
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Since 1960, the average historical return of the S&P 500 in the month of October is 1.06%. That ranks it as the fifth best month of the year. That doesn’t necessarily mean that it’s a particularly comfortable month for investors though.
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Bespoke Investment Group ran the numbers and they found that the S&P 500’s average intra-month peak to trough decline is -4.6%. So, although the month has tended to wind up being positive, it has been a bumpy ride to get there.
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Given that we are in an election year with a pretty tight race, I would expect this October would also come with some volatility.
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Best soundbites of the week:
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Do you have a family cottage or cabin that you’d like to keep in the family after you pass? There are many considerations, outside the sentimental ones. Solus Trust Company wrote an excellent article detailing what you should consider in your succession planning. Here is an excerpt from the article explaining the options for transferring the property:
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1.???? Direct gift to one or more child(ren): The simplest way to transfer the family cottage to the next generation is to gift it directly to the child or children who want to keep the cottage. This can be done during life or on death through a Will. When transferring the cottage directly to one or more children, there are some issues to consider:
a.???? Type of ownership Two common title registrations are joint tenants with right of survivorship and tenants in common.1 ?Joint tenants with right of survivorship ensure that an owner’s share automatically transfers to the surviving owners upon death, avoiding probate. This means the last surviving joint owner will have sole ownership, which might not reflect the parents’ original wishes. In contrast, Tenants in common allows each child or beneficiary to own an independent share, which passes to their named beneficiary(ies) upon death.
b.???? Expense and cottage sharing If more than one child will own the cottage, it may be beneficial to have a plan for use of the cottage and how expenses are to be dealt with. Other important issues to incorporate into the agreement may include renovations, rental of the property, buyouts, and further transfers to the next generation.
c.???? Equalization If not all children will have ownership of the cottage, a parent may wish to equalize this gift by gifting a sum of money to the non-owning children equal to the value of the cottage. It is important to ensure that the estate, net of taxes and fees, can support such an equalization. If there is a risk that the estate may not have sufficient funds or liquidity, other options such as life insurance can be considered.
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2.???? Transfer the cottage to a family trust: Trusts provide a robust solution for cottage succession, acting as separate entities for ownership and tax purposes. They can protect the property from creditors or former spouses/partners and defer certain tax triggers. Trusts can be established during one’s lifetime (inter vivos) or upon death by Will (testamentary). If the family cottage is transferred into a trust, the children can continue to have full use of the property, but the trust terms would set out how the cottage is to be managed and expenses covered. Funding the trust to cover property taxes, maintenance, and renovation costs is crucial. It is also important to understand and plan for the unique tax and legal requirements associated with administering trusts.
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You’re Invited: Quarterly Market Update – U.S. Election Edition
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Join Raymond James’ Neil Linsdell, Head of Investment Strategy, Ed Mills, Managing Director, Washington Policy, Eugenio Aleman, Chief Economist, and Tavis McCourt, Institutional Equity Strategist, for a quarterly update on financial markets and insights into what to expect in the market with the upcoming U.S. election.
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Date: October 23, 2024
Time: 10am-11am PT/11am-12pm MT/1-2pm ET
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Contact me for a registration link: [email protected]
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Beyond the markets:
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I’m thrilled to announce that Raymond James Ltd. is now an official partner of Rugby Canada focused on the women’s competitive program!
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Given the exciting news, I thought I’d share some interesting facts about women’s rugby:
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·???????? One of the earliest references to women playing rugby dates from 1881 with an England versus Scotland game in Liverpool. At the time, public reaction to women playing contact sports was very negative and some games had to be stopped because of rioting.
·???????? The first women's Rugby World Cup didn't take place until 110 years later in 1991.
·???????? The first known women rugby player was a schoolgirl called Emily Valentine, who played in a team formed by her brothers at Portora Royal School in Enniskillen, Northern Ireland.
·???????? According to official World Rugby statistics, the global female playing population has grown to almost two million.
·???????? Rugby Football Union has forecasted that the 2025 women’s World Cup - which will be hosted in England – will provide a ￡156 million (~C$277 million) uplift to the U.K. economy, and result in a 82,000 sell-out crowd at the final, compared to the 3,000 crowd at the 1991 final.
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Source: BBC
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Thanks for reading, and I wish everyone a wonderful weekend!
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Cheers,
Kim
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Kim Inglis, BCom, CIM, PFP, FCSI, RIAC
Senior 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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