Monthly Market Insights: March 2019

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Every month, Cambrian shares the Monthly Economic Commentary provided by our partners at Credential Financial Inc.. If you're looking for advice or have questions about the Monthly Economic Commentary, advisors are here to answer your questions.

Last Budget before Elections.
With a federal election set to take place in October, Finance Minister Bill Morneau tabled a budget that the Liberals hope will help retain their majority government. Summarizing some key areas, there were no changes proposed that would affect personal and corporate taxes. This was despite recommendations that such were needed to make the current tax structure more competitive following the U.S.’s tax regime change. For investments, new annuity options for Registered Plans and relaxed changes to RDSPs were proposed by Mr. Morneau. On the home-front, for new homebuyers, the maximum allowable withdrawal from their RRSP was increased to $35,000 ($70,000 spouse/common-law partner) from $25,000 ($50,000) with full payment back to the plan within 15 years. Some eligible homebuyers, they can lower their borrowing costs with up to 10% funding from CMHC with no repayment of the amount until the home is sold. To help job seekers, the Budget introduced a new Canada Training Credit of up to $250 annually to help offset professional development costs. With all changes still pending legislative approval, this final budget was aimed at the middle-class voters but at the cost of running budget deficits for the next few years. Come October 21 the vote tally will tell if the Liberals were successful.

Staying or going?
March 29 date was an important date. Not merely because it was the last business end of the first quarter of 2019 for reporting purposes, but as the last day before the United Kingdom withdrew from the European Union. Or, at least that was the plan. Coming down to the wire, the United Kingdom was able to push its departure date by two weeks to April 12. The issues still outstanding range from finance and customs to governance and trade. As it currently stands, the future of over 66M people rests with lawmakers on how the Brexit drama will unfold. In the meantime, the pound sterling will likely continue to experience its bumpy ride until there is more clarity.

Read the full March 2019 Market Insights. 

Read previous Market Insights:
February 2019
January 2019
December 2018

*The information contained in this report was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This report is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell any mutual funds and other securities.