WELCOME TO OUR APRIL RECAP!

We're excited to share all our latest tips and insights about managing your money this month. Whether you are looking for ways to save, or just want to stay on top of your finances, we're here to keep you informed and connected!

NAVIGATING THE 2025 CANADIAN ELECTION

Mark Carney’s recent election victory has ushered in a new era of economic direction for Canada. Our latest article breaks down how his government’s proposed policies may shape your financial future—and how to prepare now.

Here’s what you’ll learn:

📉 Understand the changes—Explore what’s already been done (like the carbon tax repeal) and what’s coming, including income tax cuts, capital gains exemptions, and major housing incentives.

💸 Know the impact—Learn how Carney’s agenda could influence your taxes, investments, business sale planning, real estate strategy, and retirement savings.

🔄 Smart strategies—Discover simple, proactive steps like adjusting income timing, revisiting home purchase plans, or reviewing your business succession strategy.

💡 Actionable tips—Get clear insights on how to align your financial plan with new federal priorities—so your wealth stays protected and positioned for growth.

🔗 Click here to read the full article 🔗

APRIL 2025 MARKET SUMMARY

April 2025 saw continued economic headwinds across global markets, driven by persistent inflationary pressures, political uncertainty in Canada, and the first tangible effects of newly imposed U.S. trade tariffs.

Markets React to Tariff Implementation and Stubborn Inflation

Consumer Sentiment Remains Weak

The U.S. Consumer Confidence Index® edged lower to 91.2, marking the fifth consecutive monthly decline and reflecting growing unease about future income and labor market conditions. Elevated costs and the full rollout of the U.S. automotive tariffs weighed heavily on consumer sentiment.

Source: Advisor Perspectives

Major Index Performance

• Dow Jones Industrial Average (DJIA): Down 3.4% for the month, continuing March’s downward trend as investors digested geopolitical risks.
• S&P 500: Declined by 4.1%, with financials and industrials leading losses.
• Nasdaq Composite: Dropped another 5.6%, as tech companies remained vulnerable to valuation pressure and rate uncertainty.

Source: MarketWatch

Interest Rates & Inflation Expectations

The core PCE price index rose again in April, reinforcing concerns that inflation remains sticky. This continued upward pressure reduced the likelihood of near-term rate cuts by the U.S. Federal Reserve. Policymakers signaled a “wait-and-see” stance, closely monitoring wage growth and service sector inflation.

Source: The Guardian

Meanwhile, Canadian markets adjusted to a new political landscape following Mark Carney’s election victory. While investor sentiment was cautiously optimistic about fiscal stability, currency markets remained volatile amid leadership transition and global trade uncertainty.

Geopolitical Developments: Trade & Transition

April marked the official start of the 25% U.S. tariff on imported vehicles, which drew strong responses from Canada, the EU, and Asia. Canada’s newly elected government began preliminary trade talks to mitigate long-term damage to domestic industries.

Sources: Reuters, Be Invested

In Europe, the ECB signaled a slower pace of rate cuts due to persistent inflation, while Chinese markets remained under pressure from both weak exports and internal credit tightening measures.

Outlook

With global inflation still elevated, interest rates holding, and geopolitical uncertainty increasing, markets are likely to remain volatile into Q2. Investors are encouraged to:

• Diversify across sectors and geographies
• Hold quality assets with strong balance sheets
• Stay disciplined in the face of short-term market noise

A long-term focus, paired with active portfolio management, remains critical in this environment.

FINANCIAL TERM OF THE WEEK:

INCOME SPLITTING

Income splitting is a smart tax strategy that helps couples lower their household tax bill by sharing income between a higher-earning spouse and a lower-earning one. This is especially useful in retirement when one spouse may be drawing more income from pensions or RRIFs, while the other has little or no taxable income.

Because Canada uses a progressive tax system, higher incomes are taxed at higher rates. By “splitting” eligible income with a lower-income spouse, couples can reduce their total taxes owed. For example, if one spouse receives $80,000 in income and the other $20,000, shifting some of that income can keep more of your money in your hands—not the government’s.

This strategy is recognized by the CRA and doesn’t require complicated financial moves. If you're over 65 and receiving eligible pension or RRIF income, you can split up to 50% of it with your spouse. It’s one of the simplest, most effective ways to stretch retirement income—something your DO Wealth advisor can help you optimize.

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