What BlackRock’s chief strategist for Canada is predicting for the second half of 2020 - and how investors should prepare for it
A quick summary of some dominant investing trends of the past decade: Low inflation, strong bond returns and the dominance of U.S. stocks, Rob Carrick writes. The 2020 midyear outlook from the global investment firm BlackRock suggests the coronavirus will drive changes in each of these areas and more in the months and years ahead. To find out more about how investors should adjust their portfolios, I spoke this week with Kurt Reiman, BlackRock’s chief investment strategist for Canada.
Asked how serious is the risk of a second market plunge in the latter part of the year, he responded: “Recoveries never go in a straight line.” You can read theA reader asks John Heinzl if the stocks he gifted to three of his children at below cost could be used to offset his capital gains. His accountant said no, but his broker said yes. “Who’s right?”
He responds: Your broker is correct. When you transfer securities to an adult child, in the eyes of the Canada Revenue Agency you are considered to have disposed of the shares. For tax purposes, it’s the same as if you had sold the shares at their market value at the time of the transfer. It seems your accountant may have been confusing the gifting of stocks to your adult children with a “superficial loss.