The start of this year has been packed with news! At times it seems tough to keep track of everything. We have done our best to highlight some of the important areas we feel are relevant.

Our newsletter will cover the following topics:

Navigating the Stock Market in a World of Tariffs and Trade Wars
Interesting Times: Canada’s Next Steps
Fraud
Election Time in Canada
Capital Gains Tax
Spotlight Series: Estate Planning Part 1

Navigating the Stock Market in a World of Tariffs and Trade Wars

At the beginning of March, we shared a video discussing the recent volatility in the stock market. The new administration in the U.S. has made headlines with its approach to tariffs, trade wars, federal workforce reductions, and cuts to foreign aid and international programs. These bold policy changes have sparked uncertainty, fear, and negative rhetoric about the global economy.

However, we maintain that much of what you see on TV or read in the media is just noise. Historically, most government policy shifts tend to have smaller impacts on markets than other factors, such as the credit crisis of 2008 or rapid interest changes in 2022. The frequent changes in direction create uncertainty. We will have to wait for a political solution, which we believe will be possible.

Consequently, we have started to see an adjustment to the tariff strategy (shocker!!), as companies and individuals within the US are being negatively impacted. Our ultimate belief is tariffs will be used as a bargaining chip to reset new trade agreements and much of the rhetoric you hear will be muted.

Interesting Times: Canada’s Next Steps

As Canadians, we take great pride in our country, and we believe the challenges we are currently facing create opportunities for growth and improvement. With the right investments in infrastructure, legal frameworks, and defense capabilities, Canada can strengthen its position both domestically and internationally and we detail below a few areas we feel could improve.

Recent discussions around international issues, like the U.S. government's stance on trade and security, have undoubtedly sparked a lot of reactions. While Canada (has/had?!) enjoyed a strong trade relationship with the U.S., trading between provinces hasn’t been seamless. Regulations, licensing, and complex tax laws have created a less efficient system. We believe this is an area where greater coordination could benefit our economy and strengthen internal markets.

When it comes to defense spending, Canada (and many other nations) have made commitments to meet NATO's defense budget requirements. Currently, that requirement sits at 2% of total government spend, and Canada is at 1.3% (Source: https://www.politico.com/news/2024/11/22/mike-turner-trudeau-nato-00191084?utm_source=chatgpt.com). Our need for a well-funded and properly equipped military to safeguard national security requires balancing fiscal responsibility with essential defense investments. Strategic defense spending must adapt to shifting global dynamics, responding to challenges such as the invasion of Ukraine and the changing defense landscape as the U.S. moves away from global commitments.

Canada's internal infrastructure remains an area for improvement as the lack of direct pipelines for Western oil and gas to Eastern provinces creates an inefficient movement of resources. Securing these pathways can help boost Canada’s energy security. We also have ambitious international energy plans, such as the goal to export LNG (liquified natural gas) to Europe, including Germany, as a potential way to contribute to global energy diversification. Logistically, developing the necessary infrastructure won’t be easy, but we are hopeful that continued progress will lead to positive outcomes for both domestic and international energy needs.

Canada stands at a crossroads, where challenges can serve as catalysts for progress. With stronger internal markets, adapting to shifting global security needs, and unlocking our full energy potential, we can build a more resilient and thriving future. The path forward requires bold investments, smarter coordination, strengthening trading ties with other partners, and a commitment to innovation. With the right approach, Canada can not only navigate these complexities but emerge stronger, more connected, and better positioned on the world stage.

Fraud

The digital age makes life easier for fraud and we are all at risk. We can’t count the number of times we receive texts, phone calls, or emails indicating something is being held for delivery or some other message.

What we can recommend is to be cautious and suspicious. We thought we would highlight a few common types we see regularly:

Cryptocurrency emails – tends to focus on a new way of investing that makes huge rates of return with no risk. Emails are written to create FOMO (fear of missing out). If it sounds too good to be true – it is!!
Banking texts – asking you to click the link to authenticate a cash transfer. If you receive this and you are concerned – best to contact your bank directly, before clicking the link in the text.
Calls from CRA and Amazon – countless times we have received spam calls saying we need to call a number to pay our taxes or to verify a transaction that we made on Amazon.
- TIP: if the amount is a round number (e.g. $400) that is usually a sign the call isn’t real.
Facebook/Instagram Messages – we have seen people try to extort individuals claiming to be distant relatives or even grandchildren. If they start asking for money it is almost always a scam.

The common things scammers say:

Never tell anyone about this
You have won a prize/lottery but need to pay first
This is an emergency, and I need your help
Send gift cards to fix this problem

Articles in Bloomberg illustrate the risks and losses in the US:

While scams are becoming more complex, it is concerning that scammers continue to successfully execute these schemes while dodging consequences. To protect you, we will always require verbal confirmation before proceeding with any instructions. Additionally, we will request that sensitive information, such as your SIN, be provided verbally.

We also encourage you to sign up for our secure client portal or digital app, as they offer a safe method for exchanging documents. The portal serves as a central hub for all your digital files, including those necessary for tax preparation. You will receive an email notification when statements or documents are available, but for security reasons, the email will not include a link.

Election Time in Canada

Three months ago, it seemed inevitable that the Conservative party in Canada was going to win in a landslide. Today we see the chances of a Liberal or Conservative government being almost a coin flip. If one thing is certain, the turmoil being created in America has united Canada in a way we haven’t seen in a while.

The new elected party will have their plate full of internal and external issues to deal with.

As always, we encourage everyone to vote! For more information please visit: https://www.elections.ca/home.aspx

The election is currently scheduled April 28th, 2025.

Capital Gains Tax

In a recent shift in policy, Canada's government has scrapped its proposed capital gains tax hike, which was originally part of efforts to increase tax revenue. The plan aimed to raise the tax rate on capital gains, impacting individuals and corporations selling assets like real estate and investments. However, following significant backlash from various sectors, the government decided to abandon the increase, opting to leave the current tax structure intact.

This move brings some relief to investors and businesses concerned about higher taxation on their returns, though it also raises questions about how Canada will address its fiscal challenges moving forward.

Spotlight Series: Estate Planning Part 1

We just released our first video on some estate planning questions. Many of our clients have asked us about some of these topics and we thought it would be helpful to discuss them over a few videos. Look out for future videos in the upcoming quarter.

Click here to watch our estate planning video: https://www.beaconwealthpartners.ca/education1/2025/3/24/spotlight-series-estate-planning-part-1

Thank you for taking the time to read through this edition. As always, we’re here to support you in navigating your financial life. If you have any questions , don’t hesitate to reach out. We look forward to connecting with you soon!

Jack Fournier B.Sc, FMA, CIM®
Portfolio Manager | iA Private Wealth
Insurance Advisor | iA Private Wealth Insurance Agency
700-609 Granville St. Vancouver, BC
p: 604 895 3348
jack@beaconwealthpartners.ca

Travis Kidson B.Sc, CFP®, CIM®
Portfolio Manager | iA Private Wealth
Insurance Advisor | iA Private Wealth Insurance Agency
700-609 Granville St. Vancouver, BC
p: 604 895 3486
travis@beaconwealthpartners.ca

This information has been prepared by Travis Kidson and Jack Fournier who are Portfolio Managers for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Portfolio Managers can open accounts only in the provinces in which they are registered.

iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.

Insurance products are provided through iA Private Wealth Insurance Agency which is a trade name of PPI Management Inc. Only products and services offered through iA Private Wealth Inc. are covered by the Canadian Investors Protection Fund.

Beacon Wealth Partners is a personal trade name of Jack Fournier and Travis Kidson.