In the engaging “Politics and Your Financial Plan” webinar hosted by Cardinal Point Wealth Management, viewers gain essential insights into the interplay between current economic trends and political developments, and how these factors shape investment strategies. Moderated by Matt Carvalho, Chief Investment Officer, the session features financial experts Terry Ritchie, Vice President & Private Wealth Manager, and Apollo Lupescu, Vice President at Dimensional Fund Advisors, as they address concerns on the minds of many investors.
Matt opens the discussion by highlighting the exceptional performance of investments in 2024, attributing these gains to strong economic growth, declining inflation, and a shift towards more accommodative policies by global central banks. He describes the current investment landscape as a “Goldilocks scenario,” where U.S. markets have led the way with an astounding 35% gain, compounded by the S&P 500 setting 46 new record highs. Canadian stocks have similarly excelled, nearing a 29% return, and international stocks have posted gains of 22%. Even bonds have delivered solid results, achieving over 10% in total returns. Despite these impressive numbers, Matt brings up the uncertainty of the political environment, noting that the upcoming election is shaping up to be a nail-biter, with the Senate leaning one way and the House locked in a tight race.
Apollo Lupescu takes over, sharing his experiences from conversations with thousands of investors across the U.S. He observes that concerns aren’t just about market performance but also extend to significant social and political issues, such as reproductive and civil rights. Apollo emphasizes that investors should recognize the emotional component of their decision-making but also rely on evidence-based strategies to guide their financial choices. He suggests that those feeling anxious should exercise their democratic right to vote, reminding them that a balanced, data-driven approach to investing is key.
The webinar then transitions to Terry Ritchie, who provides a thorough analysis of the potential tax implications of the upcoming election. He reviews key tax proposals from both Trump and Harris, discussing how they could impact income, estate, and gift taxes. Terry emphasizes the importance of understanding how congressional control could influence tax legislation and offers strategic insights on navigating these potential changes. He also examines current U.S. tax policies, including top marginal state rates, and outlines what these proposals might mean for both Americans and Canadians.
The session wraps up with a dynamic Q&A segment, where Terry addresses a range of audience questions, offering further clarity and actionable advice.