The passage discusses the potential impacts of the recently passed Tax Cuts and Jobs Act. It suggests that the tax cuts could significantly boost US corporate earnings and economic growth. Specifically, it predicts earnings for the S&P 500 index may increase 13-18% in 2018 due to the lower corporate tax rate of 21%. This would push the index's price-to-earnings ratio to a more reasonable level. Industries with large domestic revenues like retail, telecom, and utilities may benefit the most. The tax cuts could also push GDP growth above 3% over the next few years and further delay recession risks.
Mercer Capital's Value Matters™ | Issue 1, 2022 Mercer Capital
Mercer Capital's Value Matters™, published 6 times per year, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
What does the new Tax Cuts and Jobs Act mean for you? Our January Investment Insights explores the key points of the most significant overhaul of the tax system since '86, reviewing the new tax brackets, deductions and exemptions, and the effects on the economy.
1. Time: A most Valuable Asset
2. Federal Budget 2016: A Recap
3. Perspective: A Story of Bulls and Bears
4. The Big Picture: Beneficiary Designations
5. How are my Dividends Taxed?
6. Understanding the Fees You Pay
Mercer Capital's Value Matters™ | Issue No. 3, 2021 Mercer Capital
Mercer Capital's Value Matters™, published 6 times per year, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
Mercer Capital's Value Matters™ | Issue 1, 2022 Mercer Capital
Mercer Capital's Value Matters™, published 6 times per year, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
What does the new Tax Cuts and Jobs Act mean for you? Our January Investment Insights explores the key points of the most significant overhaul of the tax system since '86, reviewing the new tax brackets, deductions and exemptions, and the effects on the economy.
1. Time: A most Valuable Asset
2. Federal Budget 2016: A Recap
3. Perspective: A Story of Bulls and Bears
4. The Big Picture: Beneficiary Designations
5. How are my Dividends Taxed?
6. Understanding the Fees You Pay
Mercer Capital's Value Matters™ | Issue No. 3, 2021 Mercer Capital
Mercer Capital's Value Matters™, published 6 times per year, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
State of the States: An Analysis of the 2015 Governors’ AddressesALEC
State of the States is an in-depth study of governors’ tax, budget and pension reform proposals. The report gives insight into which states proposed economic reform to protect taxpayers and which states took steps toward increasing state revenue. This report also features graphics that reveal regional trends in proposed reforms while also highlighting which states have a newly elected governor.
Borrowing costs for middle-market debt issuers generally declined during the third quarter, despite a modest increase in leverage levels and little change in benchmark rates. The Fed, as expected, left benchmark interest rates unchanged in the third quarter, but did announce a program to gradually reduce its balance sheet from $4.5 trillion (a result of recessionary quantitative easing) to $3 trillion over the next three years. Thus, the prevailing combination of low borrowing costs, high leveragability and a generally benign default rate outlook, presents an attractive backdrop for issuance. This "perfect storm" of market conditions provides a compelling (albeit narrowing) window for middle-market issuers.
November 2016 caused a big shift in U.S. ideology and it also is responsible for a flurry of tax changes. With his Tax Cuts and Jobs Act of 2017, Donald Trump made changes to tax rules for Americans living at home and abroad. A big change for those living abroad are the repatriation tax rules.
In this edition of Valuation Insights we discuss recent changes in the administration of unclaimed property programs in the states of Delaware, Illinois and Texas, highlighting the need for companies to review their reporting requirements to ensure compliance and minimize the risk of audit.
Corporate borrowing activity in the second quarter was robust, particularly in the middle-market, which exceeded the record volume seen in the first quarter. Supply and demand for middle-market credit became more balanced, as opportunistic issuers came to market and/or increased issuance size. Near team market conditions remain compelling for middle-market issues as borrowers are capitalizing on strong institutional appetite by pursing favorably crafted deals for acquisition, recapitalization and growth financing.
Mercer Capital's Value Matters™ | Issue 1, 2021 Mercer Capital
Mercer Capital's Value Matters™, published 4 times per year, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
Mercer Capital's Value Matters™ | Issue 1 2018Mercer Capital
Mercer Capital's Value Matters™ addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
Tax reduction for economic developmentM S Siddiqui
The policy makers in Bangladesh prefer higher both income tax and customs duty in order to finance the development work defying the advice of economists. The own experience of tax reduction and reform in tax law since 1990s has increases higher revenue collection. Bangladesh should listen to economist and learn from the experience of two economies and ignore own experiences.
State of the States: An Analysis of the 2015 Governors’ AddressesALEC
State of the States is an in-depth study of governors’ tax, budget and pension reform proposals. The report gives insight into which states proposed economic reform to protect taxpayers and which states took steps toward increasing state revenue. This report also features graphics that reveal regional trends in proposed reforms while also highlighting which states have a newly elected governor.
Borrowing costs for middle-market debt issuers generally declined during the third quarter, despite a modest increase in leverage levels and little change in benchmark rates. The Fed, as expected, left benchmark interest rates unchanged in the third quarter, but did announce a program to gradually reduce its balance sheet from $4.5 trillion (a result of recessionary quantitative easing) to $3 trillion over the next three years. Thus, the prevailing combination of low borrowing costs, high leveragability and a generally benign default rate outlook, presents an attractive backdrop for issuance. This "perfect storm" of market conditions provides a compelling (albeit narrowing) window for middle-market issuers.
November 2016 caused a big shift in U.S. ideology and it also is responsible for a flurry of tax changes. With his Tax Cuts and Jobs Act of 2017, Donald Trump made changes to tax rules for Americans living at home and abroad. A big change for those living abroad are the repatriation tax rules.
In this edition of Valuation Insights we discuss recent changes in the administration of unclaimed property programs in the states of Delaware, Illinois and Texas, highlighting the need for companies to review their reporting requirements to ensure compliance and minimize the risk of audit.
Corporate borrowing activity in the second quarter was robust, particularly in the middle-market, which exceeded the record volume seen in the first quarter. Supply and demand for middle-market credit became more balanced, as opportunistic issuers came to market and/or increased issuance size. Near team market conditions remain compelling for middle-market issues as borrowers are capitalizing on strong institutional appetite by pursing favorably crafted deals for acquisition, recapitalization and growth financing.
Mercer Capital's Value Matters™ | Issue 1, 2021 Mercer Capital
Mercer Capital's Value Matters™, published 4 times per year, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
Mercer Capital's Value Matters™ | Issue 1 2018Mercer Capital
Mercer Capital's Value Matters™ addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
Tax reduction for economic developmentM S Siddiqui
The policy makers in Bangladesh prefer higher both income tax and customs duty in order to finance the development work defying the advice of economists. The own experience of tax reduction and reform in tax law since 1990s has increases higher revenue collection. Bangladesh should listen to economist and learn from the experience of two economies and ignore own experiences.
In this issue:
1. TD Wealth Asset Allocation Committee: Market outlook: the year ahead
2. TD Economics: A foundation for uncertain times
3. TD Wealth: New principal residence exemption rules
Economists See Clouds in the Silver LiningYardi Matrix
Download the full report: https://goo.gl/5jwDS5
At a time when optimism is rampant in the real estate industry, and the stock market is near all-time highs after a massive run-up, economists lived up to their billing as dismal scientists at the National Association of Business Economists (NABE) annual policy conference in Washington, D.C., last week.
Although the immediate state of the economy is healthy, economists lamented the country’s long-term fiscal situation, recently made worse by the tax reform passed by Congress. They were also pessimistic about the prospects for policy solutions, which include prudent immigration reform and fewer—not more—restrictions on global trade, given the growing populism that is producing an electorate with increasingly polarized views in the U.S. and Europe.
“I’m concerned that the political system has not come to grips with sensible fiscal policy,” said Alice Rivlin, a senior fellow at the Brookings Institution and former vice chair of the Federal Reserve and director of the White House Office of Management and Budget.
CBIZ Commercial Real Estate Quarterly Newsletter – June 2021CBIZ, Inc.
This issue tackles two of the hottest topics for the CRE sector - what you can do to reduce the cost of property insurance and how to take advantage of the newly supercharged employee retention tax credit. Rounding out the issue is coverage of Biden’s tax plan and short takes on Q1 and Q2 CRE sector news. As an added bonus, links are provided to COVID-19 resources, on-demand webinars and additional content & business aids. Learn more.
Please take the opportunity to view this presentation on why there are positives out there in the market, while looking at those that still concern us!
The U.S. Tech sector’s new record high has brought back memories of the dot-com bubble. But unlike then,
today’s Tech sector is not propped up by fanciful talk. It’s led by companies that are truly transforming the
economy and our lives.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
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If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
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The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
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The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
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A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
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@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
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1. Page 1 of 6 – December 21, 2017 Portfolio Advisory Group
U.S. market brief
Tax reform:
Time for the rubber to meet the road
Since President Trump was elected last year, investors’ and
financial markets’ expectations for fiscal stimulus have been
high. After several fits and starts during 2017, the president is
now poised to sign into law what is being billed as “the most
comprehensive tax reform in three decades.”
The focus of the Tax Cuts and Jobs Act (the Act) is to provide tax
relief to individuals and corporations together with a recapture
of corporate funds currently held offshore, all of which is
forecast to result in robust economic growth.*
Following are our initial thoughts on how the Act could impact the
equity and fixed income markets, along with Fed policy and the
economy.
Sorting out the equity puzzle
While some of the good news about the tax cut package is already priced
into U.S. equities as the market rallied ahead of the votes, its full effect
may not be completely incorporated into share prices.
The S&P 500 and other major indexes should see a meaningful boost
in earnings growth. Upward earnings adjustments are not yet fully
embedded into the consensus forecast, in our view.
Instead of the S&P 500 growing earnings at our 7.5% y/y estimated rate
without tax cuts, we anticipate profits could expand 13%–18% or more
with tax cuts in 2018. This higher growth range would represent $148–
$155 per share in earnings, above the current $146 consensus forecast
(or 11% growth) compiled by Thomson Reuters I/B/E/S.
Earnings growth could jump meaningfully because the corporate tax
rate has been slashed substantially to 21% from 35%. This takes the
U.S. from nearly the highest statutory rate in the world to a rate well
below the G7 and G20 averages and slightly below the European Union,
according to the Tax Foundation.
If stronger earnings growth pans out as we anticipate or is even more
robust, it would push the S&P 500 forward price-to-earnings ratio down
to a more reasonable level—from 18.4x currently to 17.7x based on the
midpoint of our higher growth range.
Priced (in USD) as of 12/21/17 market close (unless otherwise stated).
For authors’ contact information and important disclosures, see Page 4.
Domestically oriented groups carried
the highest tax rates
Effective tax rate of select industry groups
(before tax cuts)
Source - National research correspondent, Thomson
Financial, FactSet, Standard & Poor’s; data based on
3-year trailing dollar weighted effective tax rate; data
as of 12/3/17
35.0%
33.7%
32.5%
31.5%
31.3%
30.2%
29.8%
29.3%
29.1%
28.8%
28.6%
27.8%
27.5%
27.0%
26.7%
26.2%
23.3%
23.0%
22.8%
19.8%
19.3%
18.9%
17.1%
14.9%
3.5%
Retailing
Telecom
Industrial Svcs.
Utilities
Staples Retailing
H.C. Equip. & Svcs.
Materials
Div. Financials
Media
Transportation
Banks
Food, Bev., & Tob.
Consumer Svcs.
HH & Pers. Products
Capital Goods
S&P 500
Consumer Durables
Insurance
Tech Hardware
Software & Svcs.
Semiconductors
Pharma & Biotech
Autos
Energy
REITs
2. Page 2 of 6 U.S. market brief: Tax reform: Time for the rubber to meet the road, continued
December 21, 2017 | RBC Wealth Management
Industries with a large share of domestic revenues and high capital spending levels should capture the greatest
incremental increases in free cash flow. Among large-cap companies, many are in retailing, telecommunications,
industrials, utilities, and financials, and the list goes on (see chart on previous page).
U.S.-based multinational firms that had high tax rates will be able to compete more effectively with low-taxed
foreign rivals.
Also, small-capitalization public companies and small private firms should see the biggest declines in tax rates as
they previously paid the highest effective rates.
Many companies may use the extra cash flow to initiate or increase stock buybacks, hike dividends, embark on
acquisitions, and/or expand by other means—all of which could be positive for shareholders.
The legislation aims to provide U.S.-based companies with additional flexibility to grow their businesses, compete
globally, and prosper.
“Need to Know” issues for fixed income
Even before passage of the Act, 2018 was setting up to be a pivotal year for the Fed as Janet Yellen is replaced
by Jerome Powell (pending Senate confirmation) and the need to fill other vacancies at the Fed. Powell is not
expected to deviate from Yellen’s slow, deliberate approach, and as she noted at her final Federal Open Market
Committee (FOMC) press conference, “We continue to think as you can see from the projections (of other FOMC
policymakers) that a gradual path of rate increases remains appropriate even with almost all participants now
factoring in their impact of the tax policy.” The Fed is forecasting three hikes in 2018, although prolonged low
inflation or faster growth could alter its plans. We see the March FOMC meeting as the likely next opportunity for
a rate hike. However, after that, we think sticky, low inflation, will cause the Fed to pause and ultimately raise rates
just twice in 2018.
The yield spike we’ve seen in recent days—10Y Treasury yields are up about 15 basis points—is somewhat
reminiscent of the jump in rates after the 2016 election when markets anticipated that fiscal stimulus would result
in faster growth and potentially a more aggressive Fed. Now, higher yields are a result of projections of stronger
growth and Fed expectations, but also increased Treasury borrowing to fund the higher federal debt (about $1.5T)
from tax reform. In our opinion, as was the case this year, the initial exuberance over tax reform will subside.
The focus should then return to underlying economic fundamentals of modest growth and low inflation. In our
opinion, the Fed’s 2.75% forecast for terminal Fed Funds will act as a soft cap on the 10Y Treasury keeping rates
relatively close to current levels.
2018 tax rate changes
Source - Congress.gov, Tax Cuts and Jobs Act
Tax bracket 2017 2018 Tax bracket 2017 2018
$0‒$19,050 10% 10% $0‒$9,525 10% 10%
$19,051‒$77,400 15% 12% $9,526‒$38,700 15% 12%
$77,401‒$165,000 25% 22% $38,701‒$82,500 25% 22%
$165,001‒$315,000 28% 24% $82,501‒$157,500 28% 24%
$315,001‒$400,000 33% 32% $157,501‒$200,000 33% 32%
$400,001‒$600,000 35% 35% $200,001‒$500,000 35% 35%
$600,000+ 39.6% 37% $500,000+ 39.6% 37%
IndividualMarried filing joint
YearYear
Issues for individual investors: The
most visible aspects of tax reform
for fixed income investors will
center on revisions to individual
tax rates, revisions to both the
alternative minimum tax and state
and local tax deductions. But, as
the chart shows, the individual tax
rate changes are modest and, in our
view, the lower top rates shouldn’t
reduce demand for municipal
bonds especially as new issuance is
expected to lag in 2018 due to the
elimination of Advanced Refunding
bonds. The lower corporate rate,
3. Page 3 of 6 U.S. market brief: Tax reform: Time for the rubber to meet the road, continued
December 21, 2017 | RBC Wealth Management
21% vs. 35%, could reduce the issuance of corporate debt, and possibly lower demand for munis from some
corporations, but in our opinion continued low rates will fuel investor demand for yield in credit and munis.
The economy has been fine, even without tax reform
We have been hearing about tax reform for several months, but behind the scenes the U.S. economy hasn’t been
standing still. It has continued to chug along slowly, but steadily once again proving that the business cycle
ultimately impacts the stock and bond markets far more than the political cycle. That being said, tax reform could
very well result in stronger near-term growth.
GDP has posted two consecutive quarters of 3% growth and with 2.7% forecast for Q4, GDP growth in 2017 could
come in at about 2.5%.
We pay close attention to several key recession indicators—yield curve, interest rates, employment, jobless claims,
leading index, and manufacturing—and all are currently flashing green (showing no recession risks).To us, it is
clear the U.S. economy, even before tax reform, had been on solid footing and the current expansion is poised to
continue.
Forecasts from our colleagues at RBC Capital Markets and RBC Global Asset Management suggest tax reform could
boost growth 0.4—0.5 percentage points over the next couple of years, increasing annual GDP growth to over 3%+,
which likely further pushes into the future chances of a recession. It is noteworthy to consider however that with
some components of tax reform set to expire in future years, the boost to growth could be temporary.
* The material contained herein is for informational purposes only and does not constitute tax advice. Given that
RBC Wealth Management does not provide tax or legal advice, clients should consult with a qualified tax advisor or
attorney with regard to their personal tax situation.
4. Page 4 of 6 U.S. market brief: Tax reform: Time for the rubber to meet the road, continued
December 21, 2017 | RBC Wealth Management
Authors
Analyst Certification
All of the views expressed in this report accurately reflect the
personal views of the responsible analyst(s) about any and all
of the subject securities or issuers. No part of the compensation
of the responsible analyst(s) named herein is, or will be, directly
or indirectly, related to the specific recommendations or views
expressed by the responsible analyst(s) in this report.
Important Disclosures
In the U.S., RBC Wealth Management operates as a division of
RBC Capital Markets, LLC. In Canada, RBC Wealth Management
includes, without limitation, RBC Dominion Securities Inc., which
is a foreign affiliate of RBC Capital Markets, LLC. This report has
been prepared by RBC Capital Markets, LLC. which is an indirect
wholly-owned subsidiary of the Royal Bank of Canada and, as
such, is a related issuer of Royal Bank of Canada.
Non-U.S. Analyst Disclosure: Alicia Buckiewicz, Farazeh Mahboob,
and Jay Roberts, employees of RBC Wealth Management USA’s
foreign affiliate RBC Dominion Securities Inc.; and Frédérique
Carrier and Thomas McGarrity, employees of RBC Wealth
Management USA’s foreign affiliate Royal Bank of Canada
Investment Management (U.K.) Limited; contributed to the
preparation of this publication. These individuals are not
registered with or qualified as research analysts with the U.S.
Financial Industry Regulatory Authority (“FINRA”) and, since they
are not associated persons of RBC Wealth Management, they may
not be subject to FINRA Rule 2241 governing communications with
subject companies, the making of public appearances, and the
trading of securities in accounts held by research analysts.
In the event that this is a compendium report (covers six or more
companies), RBC Wealth Management may choose to provide
important disclosure information by reference. To access current
disclosures, clients should refer to http://www.rbccm.com/
GLDisclosure/PublicWeb/DisclosureLookup.aspx?EntityID=2
to view disclosures regarding RBC Wealth Management and its
affiliated firms. Such information is also available upon request
to RBC Wealth Management Publishing, 60 South Sixth St,
Minneapolis, MN 55402.
References to a Recommended List in the recommendation history
chart may include one or more recommended lists or model
portfolios maintained by RBC Wealth Management or one of its
affiliates. RBC Wealth Management recommended lists include
Craig Bishop – Minneapolis, United States
craig.bishop@rbc.com; RBCCapital Markets, LLC
Kelly Bogdanov – San Francisco, United States
kelly.bogdanov@rbc.com; RBCCapital Markets, LLC
Alan Robinson – Seattle, United States
alan.robinson@rbc.com; RBCCapital Markets, LLC
D isclosures and Disclaimer
the Guided Portfolio: Prime Income (RL 6), the Guided Portfolio:
Dividend Growth (RL 8), the Guided Portfolio: ADR (RL 10), and
the Guided Portfolio: All Cap Growth (RL 12), and former lists
called the Guided Portfolio: Large Cap (RL 7), the Guided Portfolio:
Midcap 111 (RL 9), and the Guided Portfolio: Global Equity (U.S.)
(RL 11). RBC Capital Markets recommended lists include the
Strategy Focus List and the Fundamental Equity Weightings (FEW)
portfolios. The abbreviation ‘RL On’ means the date a security was
placed on a Recommended List. The abbreviation ‘RL Off’ means
the date a security was removed from a Recommended List.
Distribution of Ratings
For the purpose of ratings distributions, regulatory rules require
member firms to assign ratings to one of three rating categories
- Buy, Hold/Neutral, or Sell - regardless of a firm’s own rating
categories. Although RBC Capital Markets, LLC ratings of Top
Pick (TP)/Outperform (O), Sector Perform (SP) and Underperform
(U) most closely correspond to Buy, Hold/Neutral and Sell,
respectively, the meanings are not the same because our ratings
are determined on a relative basis (as described below).
Explanation of RBC Capital Markets, LLC Equity Rating System
An analyst’s “sector” is the universe of companies for which
the analyst provides research coverage. Accordingly, the rating
assigned to a particular stock represents solely the analyst’s view
of how that stock will perform over the next 12 months relative to
the analyst’s sector average. Although RBC Capital Markets, LLC
ratings of Top Pick (TP)/Outperform (O), Sector Perform (SP), and
Underperform (U) most closely correspond to Buy, Hold/Neutral
and Sell, respectively, the meanings are not the same because our
ratings are determined on a relative basis (as described below).
Ratings:
Top Pick (TP): Represents analyst’s best idea in the sector;
expected to provide significant absolute total return over 12
months with a favorable risk-reward ratio. Outperform (O):
Expected to materially outperform sector average over 12 months.
Sector Perform (SP): Returns expected to be in line with sector
average over 12 months. Underperform (U): Returns expected to
be materially below sector average over 12 months.
Risk Rating:
As of March 31, 2013, RBC Capital Markets, LLC suspends its
Average and Above Average risk ratings. The Speculative risk
rating reflects a security’s lower level of financial or operating
predictability, illiquid share trading volumes, high balance sheet
leverage, or limited operating history that result in a higher
expectation of financial and/or stock price volatility.
Valuation and Risks to Rating and Price Target
When RBC Wealth Management assigns a value to a company in a
research report, FINRA Rules and NYSE Rules (as incorporated into
As of September 30, 2017
Rating Count Percent Count Percent
Buy [Top Pick & Outperform] 859 52.92 294 34.23
Hold [Sector Perform] 660 40.67 154 23.33
Sell [Underperform] 104 6.41 7 6.73
Investment Banking Services
Provided During Past 12 Months
Distribution of Ratings - RBC Capital Markets, LLC Equity Research
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December 21, 2017 | RBC Wealth Management
the FINRA Rulebook) require that the basis for the valuation and
the impediments to obtaining that valuation be described. Where
applicable, this information is included in the text of our research
in the sections entitled “Valuation” and “Risks to Rating and Price
Target”, respectively.
The analyst(s) responsible for preparing this research report
received compensation that is based upon various factors,
including total revenues of RBC Capital Markets, LLC, and its
affiliates, a portion of which are or have been generated by
investment banking activities of the member companies of RBC
Capital Markets, LLC and its affiliates.
Other Disclosures
Prepared with the assistance of our national research sources.
RBC Wealth Management prepared this report and takes sole
responsibility for its content and distribution. The content may
have been based, at least in part, on material provided by our
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not reviewed or approved this report, nor has it been informed of
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time have long or short positions in, effect transactions in, and
make markets in securities referred to herein. Our third-party
correspondent may from time to time perform investment banking
or other services for, or solicit investment banking or other
business from, any company mentioned in this report.
RBC Wealth Management endeavors to make all reasonable efforts
to provide research simultaneously to all eligible clients, having
regard to local time zones in overseas jurisdictions. In certain
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as overlay manager for our clients and will initiate transactions in
the securities referenced herein for those accounts upon receipt
of this report. These transactions may occur before or after your
receipt of this report and may have a short-term impact on the
market price of the securities in which transactions occur. RBC
Wealth Management research is posted to our proprietary Web
sites to ensure eligible clients receive coverage initiations and
changes in rating, targets, and opinions in a timely manner.
Additional distribution may be done by sales personnel via e-mail,
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Conflicts Disclosure: RBC Wealth Management is registered with
the Securities and Exchange Commission as a broker/dealer and
an investment adviser, offering both brokerage and investment
advisory services. RBC Wealth Management’s Policy for Managing
Conflicts of Interest in Relation to Investment Research is available
from us on our Web site at http://www.rbccm.com/GLDisclosure/
PublicWeb/DisclosureLookup.aspx?EntityID=2. Conflicts of
interests related to our investment advisory business can be found
in Part II of the Firm’s Form ADV or the Investment Advisor Group
Disclosure Document. Copies of any of these documents are
available upon request through your Financial Advisor. We reserve
the right to amend or supplement this policy, Part II of the ADV, or
Disclosure Document at any time.
The authors are employed by one of the following entities: RBC
Wealth Management USA, a division of RBC Capital Markets,
LLC, a securities broker-dealer with principal offices located in
Minnesota and New York, USA; by RBC Dominion Securities Inc., a
securities broker-dealer with principal offices located in Toronto,
Canada; by RBC Investment Services (Asia) Limited, a subsidiary
of RBC Dominion Securities Inc., a securities broker-dealer with
principal offices located in Hong Kong, China; and by Royal Bank
of Canada Investment Management (U.K.) Limited, an investment
management company with principal offices located in London,
United Kingdom.
Research Resources
This document is produced by the Global Portfolio Advisory
Committee within RBC Wealth Management’s Portfolio Advisory
Group. The RBC WM Portfolio Advisory Group provides support
related to asset allocation and portfolio construction for the
firm’s Investment Advisors / Financial Advisors who are engaged
in assembling portfolios incorporating individual marketable
securities. The Committee leverages the broad market outlook as
developed by the RBC Investment Strategy Committee, providing
additional tactical and thematic support utilizing research from
the RBC Investment Strategy Committee, RBC Capital Markets, and
third-party resources.
Third-party disclaimers
The Global Industry Classification Standard (“GICS”) was developed by and is
the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard
& Poor’s Financial Services LLC (“S&P”) and is licensed for use by RBC.
Neither MSCI, S&P, nor any other party involved in making or compiling the
GICS or any GICS classifications makes any express or implied warranties or
representations with respect to such standard or classification (or the results
to be obtained by the use thereof), and all such parties hereby expressly
disclaim all warranties of originality, accuracy, completeness, merchantability
and fitness for a particular purpose with respect to any of such standard or
classification. Without limiting any of the foregoing, in no event shall MSCI,
S&P, any of their affiliates or any third party involved in making or compiling
the GICS or any GICS classifications have any liability for any direct, indirect,
special, punitive, consequential or any other damages (including lost profits)
even if notified of the possibility of such damages.
References herein to “LIBOR”, “LIBO Rate”, “L” or other LIBOR
abbreviations means the London interbank offered rate as administered
by ICE Benchmark Administration (or any other person that takes over the
administration of such rate).
Disclaimer
The information contained in this report has been compiled by RBC Wealth
Management, a division of RBC Capital Markets, LLC, from sources believed
to be reliable, but no representation or warranty, express or implied, is made
by Royal Bank of Canada, RBC Wealth Management, its affiliates or any other
person as to its accuracy, completeness or correctness. All opinions and
estimates contained in this report constitute RBC Wealth Management’s
judgment as of the date of this report, are subject to change without
notice and are provided in good faith but without legal responsibility. Past
performance is not a guide to future performance, future returns are not
guaranteed, and a loss of original capital may occur. Every province in Canada,
state in the U.S., and most countries throughout the world have their own
laws regulating the types of securities and other investment products which
may be offered to their residents, as well as the process for doing so. As a
result, the securities discussed in this report may not be eligible for sale in
some jurisdictions. This report is not, and under no circumstances should