Good Afternoon,
After a volatile October, the capital markets experienced a nice broad-based comeback for the month of November.
Before jumping to the November monthly update, I wanted to provide an update on TFSA and RRSP contribution amounts for next year.
The 2025 TFSA contribution limit is $7,000. This matches the limit in 2024. Remember, any unused contribution room gets carried forward. If you have never contributed to a TFSA and were at least 18 years old in 2009, your lifetime contribution limit will be $102,000 in 2025.
The 2025 RRSP contribution limit is 18% of the previous year’s earned income, up to the maximum limit of $32,490. Pension adjustments affect your contribution total. But any unused contribution room gets carried forward.
To confirm your TFSA and RRSP contribution limits, I recommend contacting CRA either online or over the phone. Contribution limits will be updated and posted online in early 2025.
In November, the DOW came out swinging and increased 7.5%, the S&P500 was up 5.7%, the Nasdaq was up 6.2%, while Canada’s TSX gained 6.2%.
As we all know, Donald Trump won the US election on November 5th and is set to become the 47th President of the United States. The markets had a huge pop on November 6th. Given Trump’s love of tax cuts and deregulation, the markets reacted positively. However, the markets course-corrected a bit after the one-day exuberance, and from Nov 7th to Nov 15th, the DOW fell -0.9%, the S&P500 came back -1%, and the NASDAQ fell -1.5%.
Republicans also won control of the House of Representatives and control the Senate meaning both chambers of Congress and the White House are decisively red. These wins create a clearer path for Trump to enact his agenda. On top of Trumps love of tax cuts and deregulation, his unbridled fondness of tariffs is well known. If he enacts the threatened 25% tariff on Canada and Mexico and a 60% tariff on goods imported from China to the US, a potential byproduct is increased inflation followed by subsequent increasing interest rates.
The Wall Street Journal created an excellent piece outlining the basics of tariffs, how they worked during Trump’s last administration, and what the potential result would be of the additional proposed tariffs. https://www.youtube.com/watch?v=_-eHOSq3oqI
Only time will tell how the markets will react to the Trump agenda; stay tuned. If you have any further questions on the above or your portfolio, please let me know. Thanks,
