Tower Talk: Navigating Markets

This is the first in a number of videos exploring investing and retirement planning strategies.We're starting with Income Splitting. It's a simple but extremely effective way to reduce taxes currently and in retirement. Why does income splitting work? Who does this apply to? Should I being doing this now or in retirement?Watch the video to find out!#financialadvice #financialplanning #retirementplanning #retirement #investingIf you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you.info@towerasset.caIncome Splitting Basics and Progressive Tax System [00:00:46]: Explanation of income splitting, progressive tax rates, and the goal of keeping both spouses in lower tax brackets.Asset Splitting and Equalizing RRSPs [00:02:19]:Discussion on splitting assets in retirement and aiming for equal-sized RRSPs for both spouses.Spousal RRSPs as a Strategy [00:02:30]:How higher-earning spouses can contribute to spousal RRSPs to optimize retirement income and tax benefits.Limitations and CRA Rules on Income Splitting [00:04:40]:Clarification on what types of income can be split, age restrictions, and the importance of personalized planning.Charitable Donations and Donating Stock [00:05:21]:Tax-saving benefits of donating stock instead of cash to charities, including a client example.Upcoming Videos and Donor-Advised Fund Announcement [00:06:24]

We're just 3 months past the "Liberation Day" Tariffs and despite initial concerns, the S&P 500 is up 6% and the TSX has gained 10% YTD.To move beyond the headlines we look at specific economic indicators: US Manufacturing (one of our go-to indicators) is up. But while that is green, other indicators are flashing red, indicating a cautious yet optimistic market sentiment. It's a nuanced scenario we're navigating.We also discuss interesting insights from a recent article on Canada’s financial industry (link below): bank-employed investment reps face significant pressure to sell products often not in the best interest of clients. At Tower, we're independent, our duty is first and foremost our clients. Your success is our success, and we strive to build trust through direct, transparent relationships. #marketupdate #economicindicators #investmentmanagement #investmentinsights #clientfirst #financialtransparency If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you.info@towerasset.caBank reps under pressure to sell: https://www.investmentexecutive.com/news/from-the-regulators/bank-reps-under-pressure-to-sell-osc-and-ciro/Market Recap and Economic Indicators [00:00:00] Overview of 2025 market performance, key indices, and economic indicators like manufacturing orders, jobless claims, and inflation.Sector Rotation in Markets [00:02:21]Shift from tech giants to industrials and how this affects overall market performance.Bank Sales Pressure Article [00:02:47]Summary of an article on sales pressure at banks and how it impacts client interests.Tower’s Independence and Business Model [00:03:46]Emphasis on Tower’s independence from banks and client-focused investment management.Co-Investment Philosophy [00:05:32]Tower partners invest alongside clients, using the same strategies and paying the same fees.Personalized Client Relationships [00:06:26]Tower’s direct, personal approach versus distant portfolio managers at banks or brokers.

In this episode, we discuss the current financial market turmoil caused by Trump Administration.Since the end of March, markets around the world have been in free fall, and the S&P 500 is in a correction by many measures. The reason for the sudden crash is the introduction of substantial tariffs on essentially all imports into the US. Why is the US changing the way the world trades? Is there a good faith argument for this given the turmoil it's caused? As with any complex issue, the answer is unclear, but we cover the rationale behind tariffs and their potential benefits for U.S. trade relations and Canada's internal trade improvements. We also discuss what we are doing to manage client portfolios during these challenging times. No one likes to see their portfolio balances go down, it's difficult, but the most important thing is not to panic. Markets cannot go up forever and corrections are inevitable. A dip in the market provides an opportunity for strategic rebalancing, structuring your portfolio for solid growth in the eventual recovery.If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you.info@towerasset.ca[00:00:00] Market Turmoil Overview Discussion on the current turmoil in the market due to trade wars and tariffs.[00:01:31] Impact on Client AccountsOverview of how accounts are being managed during market fluctuations.[00:02:10]Understanding Tariff ImplicationsAnalysis of trade imbalances and the potential long-term effects of tariffs.[ 00:03:23] Opportunities for Canada Discussion on how tariffs could benefit Canada's interprovincial trade.[00:04:05] Human Ingenuity in Markets Emphasis on human creativity in overcoming market challenges.[00:05:05] Strategic Rebalancing and Deploying CapitalExplanation of the strategy to rebalance client accounts amidst market changes.[00:06:14] Investment Strategies Overview Description of three investment strategies: Momentum, Value (Enhanced Index), and Dividend.

In this episode, we delve into the intricacies of our various investment strategies, providing a detailed analysis of their performance and offering valuable insights for investors. The Canadian Momentum strategy did well in 2024 (~18%) but it did slightly underperform compared to the TSX Total Return index. However, the strategy is still outperforming in the longer 3 and 5 year horizons. Our Enhanced Index strategies also did well and handily outperformed comparable target risk portfolios developed by Morningstar. This was true for both the Aggressive Growth (80/20) and Growth (65/35) iterations of the strategy. And finally, while it's track record is short at only 4 months, the Canadian High Dividend Strategy is also outperforming its benchmark in year-to-date returns and dividend yield. We are happy to announce that we will likely be launching a US Momentum Strategy later this year, as our test account outperformed the S&P 500 in 2024. By analyzing two years of daily returns and incorporating a volume adjustment, we've refined our approach to maximize performance. #momentuminvesting #investing #dividendinvesting #investmentstrategy #dividendyield If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca (00:00:35) Canadian Momentum Strategy Overview Tarek discusses the performance of the Canadian momentum strategy compared to the TSX. (00:02:20) Enhanced Index Strategies Returns Tarek reviews returns of enhanced index strategies and their comparison to Morningstar benchmarks. (00:03:40) New Canadian High Dividend Strategy Tarek discusses the new Canadian High Dividend strategy and its initial performance. (00:04:06) Market Trends in December Tarek explains the market dynamics in December and the impact of the U.S. jobs report. (00:05:24) Testing New U.S. Momentum Strategy Tarek shares insights on testing a new momentum strategy in the U.S. market. (00:06:35) Strategy Development Process Tarek describes the use of data analysis and coding to refine the new momentum strategy. (00:08:36) Future Plans for Strategy Rollout Tarek outlines plans to implement the new strategy adjustments in client accounts.

The election of Donald Trump as President of the United States has significant implications for financial markets, particularly from a Canadian investor's perspective. Markets reacted positively to Donald Trump's election with the S&P 500 and the TSX showing solid gains in the days following the election. At the same time, valuations are at all-time highs with stock prices gaining more than earnings (potential bubble?). We delve into the nuances of market performance, economic indicators, and investment strategies in the wake of Trump's presidency. Donald Trump is inheriting a strong economy, will his policies continue this momentum? Tune in to find out. #uselection #trump #stockmarket #dividendinvesting #trading # investing If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca (00:22) Trump's Election Impact Discussion on Trump's election effects, highlighting significant market enthusiasm, with S&P 500 and TSX increases. (00:55) U.S. Economic Overview Analysis of strong U.S. economic indicators, including low unemployment and high GDP growth, with valuation concerns. (01:43) Market Valuations Concerns Concerns about stock prices rising faster than earnings, speculating on potential recession or market bubble. (03:16) Defensive Strategies in Investing Introduction of defensive strategies to mitigate risks associated with potential market downturns and bubbles. (04:27) Fundamental Indexing Strategy Explanation of the fundamental indexing strategy focusing on companies with strong fundamentals rather than market capitalization. (05:31) New Dividend Strategy Introduction Introduction of a new dividend strategy, highlighting its strong yield and performance since inception. (08:12) Market Concerns and Headwinds Addressing potential market headwinds from tariffs and uncertain trade negotiations affecting Canadian investors.

In this episode, Tarek and Mark explore the comparative merits of investing in real estate versus capital markets, particularly the Toronto Stock Exchange (TSX). With Canadian real estate prices soaring over the past few decades, many investors are drawn to the tangible nature of property investments. However, Tarek presents compelling data that challenges the notion that real estate is the superior investment choice. #realestateinvesting #stockmarket #tsx #diversification #housingmarket If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca [00:01:10] Data Comparison: Real Estate vs. Capital Markets. Presentation of data comparing real estate returns to TSX returns over a specified timeframe. [00:03:57] Reasons to Invest in Real Estate [00:03:52] Strengths of Real Estate Investing [00:04:57] Challenges of Real Estate Investing [00:06:29] Idiosyncratic Risk in Real Estate The risk of having a large portion of wealth tied to a single property is examined.

Did you know that our Canadian Momentum strategy has outperformed the TSX year-to-date through August? 🏦📈 The TSX index has returned a healthy 11.4%, so listen to the episode to see how much we outperformed. New Dividend Strategy: We’ve developed a fresh dividend strategy focusing on high-yield, stable companies. Our goal? To ensure these dividends are sustainable and likely to grow over time. Our selected stocks boast a dividend yield more than double the TSX index’s 2.92%. This positions our strategy favorably against major high-dividend ETFs from firms like BlackRock and Vanguard. #investing #StockMarket #financialplanning #dividendstocks #dividendyield If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca [00:00:00] Year-to-Date Returns Discussion of year-to-date returns through August, highlighting impressive performance numbers. [00:01:49] Enhanced Index Performance Performance of an enhanced index strategy with an 80/20 equity to fixed income mix. [00:02:58] Dividend Strategy Criteria [00:05:38] Comparison with TSX Dividend Yield

In this episode, we discuss recent stock market trends, highlighting a potential shift from the dominance of large tech stocks, known as the "magnificent seven," to smaller-cap stocks and a broader market. This may be the beginning of the market rotation we've been talking about. Next we discuss the importance of a diversified investment strategy and introduce a new dividend yield portfolio focused on high dividend-paying stocks in Canada. The portfolio aims to provide a steady income stream with tax advantages and is expected to yield around 6%. Tune in to find out more details! If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca (00:02:00) The Magnificent Seven Discussion on the concentration of returns in major tech stocks, highlighting their impact on the market. (00:02:45) Valuation Concerns Tarek mentions the high valuations of tech stocks, particularly Nvidia's P/E ratio. (00:03:53) Positive Signs for Smaller Stocks Returns are shifting towards smaller-cap stocks, indicating a potential market rotation. (00:06:11) New Dividend Yield Portfolio Strategy Mark introduces the new dividend yield portfolio strategy focused on high dividend-paying Canadian stocks. (00:08:01) Expected Yield and Tax Advantages Discussion on the expected yield of around 6% and the tax benefits of dividends over other income.

In this episode of Tower Talk, we delve into various market topics, including private equity, election year impacts, and US equity concentration. We discuss the liquidity crisis in private equity (yes, there is a liquidity crunch) with large funds facing challenges due to lack of exits. The conversation shifts to the historical trend of how markets perform during US election years. Finally, we highlight the significant concentration of the US in world equity markets and then further concentration within the S&P 500 and its risks. #investingstrategies #usmarket #privateequity #uselection If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca (00:01:02) Private Equity - Discussion on challenges faced by pension funds and endowments, illiquidity, overvaluation, and potential impact on investment portfolios. (00:04:05) Election Year Impact - Analysis of the historical market performance during US election years. (00:05:06) Concentration in US Equities - Discussion on the substantial representation of the US market in the global investable universe, significant concentration of top companies in the S&P 500, and concerns about lack of diversification and single-name risk. (00:09:33) Stock Valuations and Investment Strategy - Examination of the high price-to-earnings multiples of top companies, and a potential market rotation. Show notes: FTSE All World Index S&P 500 Returns during US Elections

In this episode, we explore the nuances of Value and Momentum investing strategies. Value investing targets undervalued companies with strong fundamentals, while Momentum investing rides the wave of current market trends. Tarek and Mark share insights from Tower's own in-house Momentum strategy, emphasizing a disciplined, mathematical selection process. The conversation underscores the importance of a balanced investment approach to manage risk and capitalize on market opportunities. No single approach holds all the answers. Though a blending of both strategies can create a robust, resilient portfolio. It's about crafting a portfolio as unique as your financial goals. #InvestingInsights #MarketTrends #InvestmentDiscipline #RiskMitigation If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca [00:00:31] Introduction to the episode's focus on portfolio strategies, and the offer to assist listeners in applying concepts to their finances. [00:01:35] Explanation of value investing, focusing on companies with high intrinsic value that may be undervalued based on fundamental ratios. [00:02:23] Explanation of momentum investing, focusing on identifying stocks that will perform well in the next three months by hopping on horses that are already running. [00:03:51] Discussion about the recent shift in market trends from growth to more value-based companies and the impact on portfolio strategies. [00:05:05] Explanation of the need to have exposure to both value and momentum investing, and the recommendation to have a balanced approach. [00:08:12] Emphasis on the importance of sticking with a chosen strategy, avoiding switching strategies based on market performance, and the potential risks of doing so.

In this live episode of Tower Talk we start by discussing the current state of US and Canadian markets. Markets have been doing well, but those returns have been concentrated in a small number of large companies driven by the ongoing "AI Revolution". We compare the economic trends in both countries to see if we can expect markets to continue to climb this wall of worry. Then Mark outlines why there's a bubble in the Private Equity market and how it may burst in the next few years, you heard it here first! This was a live episode and we answered some listener questions regarding the AI revolution, the fallout from the private equity bubble and whether there is a sovereign debt crisis coming. #assetmanagement #marketupdate #airevolution #privateequity #sovereigndebt If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca (00:00:55)Market Update - Overview of market performance, indices, and indicators in the US and Canada. (00:08:37) Private Equity Impact - Insight into the potential of a bubble in private equity and when it might correct. (00:16:53) AI Industry - Discussion of the AI industry and its potential impact on the market, comparing it to the dotcom bubble. (00:22:06) Effect of Private Equity on Public Markets - Exploration of the potential effects of private equity on public markets and retail investors. (00:26:33) Public Debt and Market Reality - Concerns about the impact of increasing public debt and the return to reality in the market.

Maximizing your financial potential isn't just about earning—it's about smart saving, too. That's why this month's episode of Tower Talk is all about taxes. We unpack the power of registered accounts like RRSPs, RESPs, and TFSAs. Understanding contribution limits and employer matching can make a significant difference in your tax savings. We also explore the importance of estate planning and succession strategies. Smooth asset transfer to your beneficiaries goes beyond goodwill; it's a financial strategy to minimize tax implications for those you care for most. Stay informed, stay ahead. #estateplanning #assetmanagement #financialplanning #taxsavings If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca (00:00:08) Mark announces the upcoming live episode on March 20th, mark your calendars! (00:01:01) Discussion on the benefits of paying taxes, including infrastructure, education, and healthcare. (00:01:40) Explanation of registered accounts like RRSPs, RESPs, and TFSAs, and their tax-saving benefits. (00:02:37) Detailing the contribution limits and government matching for RRSPs and RESPs. (00:05:05) The importance of opting into employer matching programs for retirement savings and maximizing income. (00:05:42) Strategies for balancing savings accounts and deducting home office expenses for tax benefits. (00:06:51) Exploring the tax advantages of donating shares to charities and the related capital gains. (00:07:52) The importance of having a will and efficient transfer of assets to minimize taxes and confusion for beneficiaries.

Happy New Year Tower Talk listeners! Markets ended 2023 on a strong note (the Santa Claus Rally came through!) and we look back at some highlights, including how many were calling for a recession in 2023. We also go through how the Tower portfolios performed, and show why one strong year in the market is not nearly as important as consistency. Finally, we look forward to what we expect for 2024, including whether we've reached peak interest rates and a new appreciation for fixed income investments. If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca

It's hard to believe but 2023 is coming to an end. We hope that you're spending your holiday season with family and friends, but we also want to make sure you take care of your finances as well! Year-end means tax planning, managing registered account contributions (RRSPs, TFSAs, etc.) and charitable donations among other things. We discuss what you need to know going in to year-end as well as the Santa Claus Rally. Does the magic of the season also affect the stock market? Check out the latest episode to find out! If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca

What does the word "Risk" mean? We use it constantly in life to describe a number of different things and its meaning can be deeply personal. What one person sees as risky, another person may see as exactly the opposite. The word Risk is used often in Investment Management and we wanted to provide some clarity around what is meant by Risk in our context. Then, after we're all on the same page regarding what we mean by risk, we talk about how we manage and mitigate that risk. There's even a way to take less risk and earn higher returns, check out the episode to find out! If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca

Q3 is behind us and with the leaves falling and the air getting crisp we are in the final quarter of 2023! Markets are down this quarter which is a reversal of much of the positive momentum we saw in the first half of the year. This dip is in response to many factors, including this new "higher for longer" interest rate environment. However, we are anticipating this is part of a larger rotation from growth stocks to value stocks, which Tower strategies are designed to take advantage of. What other factors are having a major impact? How did Tower's portfolio strategies perform and how are they situated to navigate the current market challenges? Check out the episode to find out! If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca

Timing the Market. Is it possible? The short answer is no, but the longer and more interesting answer is, it depends and is it really even worth it? This month we look at what it means to try to time the market. We compare the perfect investor, who picked the best day to invest for 20 years, to the investor who just invested regularly. The results may surprise you. Markets will correct, that's a natural part of the capital cycle. We look at the major market corrections of the last 25 years and how they've been very different (unpredictable or untimeable) each time. That doesn't mean you have to feel the full brunt of each correction in your portfolio! That's you why you have us (or should have us)! How do Tower's strategies protect and grow your wealth across market cycles? Check out the episode to find out! If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca Show notes: Referenced Article - https://www.schwab.com/learn/story/does-market-timing-work #markettiming #financepodcast #investing

An economic indicator is a piece of economic data used to understand current and future economic activity. They're used to judge the overall health of an economy. In this episode Mark and Tarek discuss some of their favorite economic indicators and what they mean for the larger economy. What are Purchasing Managers expecting for the economy? Who is Dr. Copper and how is he so good at predicting where the economy is going? What do Big Macs have to do with the Canadian Dollar vs US Dollar? And is Taylor Swift's Eras Tour single handedly preventing a recession? Check out the episode to find out! If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca

In this episode we look back at Q2 2023 and examine the major factors at play. The US stock market is officially a bull market with the S&P 500 gaining more than 20% after the lows of 2022. A quick look at which companies are leading this rally show may not be as broad as it appears. We also discuss inflation and interest rates, with Prime being the highest its been in 22 years here in Canada. Are the rate hikes done? Inflation is trending down, but what does that mean? Tune in to find out our thoughts. If you have questions, topic ideas or want to discuss your own investments please reach out, we'd love to hear from you. info@towerasset.ca

In this video, we dive into the current state of the capital markets in Q1 of 2023. We'll be taking a closer look at some of the most pressing issues facing the financial industry today, including the banking crisis, interest rates, and inflation. We also discuss the financial press in general and how there are always reasons not to invest. Finally, we look at the returns for our strategies and how they compared to the overall market. *spoiler alert* one strategy substantially outperforms. If you have any additional questions about the market or your portfolio specifically, feel free to reach out via email. info@towerasset.ca