Record low interest rates following the 2007-2008 global financial crisis were unprecedented and caused many distortions in the global economy. In the investing world, record low interest rates pushed investors to look for alternatives to cash and high-quality fixed income (bonds), which yielded close to zero in North America and negative in Europe. Locking in very low single-digit or even negative returns was understandably unappealing for investors and, as a result, investors preferred equities and alternative investments.

On Friday, March 10th, US regulators closed Silicon Valley Bank (SVB), a 40-year old bank that catered to the tech industry. The bank's failure was abrupt, with concerns only really arising the day before, on March 9th, when the company's stock fell over 60%. The speed of the collapse was driven by high-profile venture capitalists (e.g. Peter Thiel) urging their portfolio companies to pull funds from the bank. SVB had over US$200 billion in assets at the time of closure, making it the 16th largest bank in the US and the 2nd largest bank to ever bank failure in US history.

It's tax season AGAIN and the Canadian tax filing deadline of May 1st, 2023 is fast approaching. It is essential to keep up to date with changes in the Income Tax Act to minimize your tax payable when preparing your return.

Historically, the only refuge from this US dollar depreciation was to avoid individual US stocks, leading to a potentially more concentrated (and risky) portfolio, or to buy currency-hedged US equity exchange traded funds (ETFs) that provide diversified exposure to the US. Thankfully, CIBC has recently launched Canadian Depositary Receipts (CDRs) which allow Canadian investors to attain exposure to select individual US stocks but this exposure is denominated in Canadian dollars.

Another annual Canadian ritual approaches - meeting the deadline to contribute to your RRSP (Registered Retirement Savings Plan). Watch this video with Sam for a quick discussion about RRSPs and how they will help you reach your financial goals!