The Forces Shaping What's Next in Markets

Most global equity markets, including those in Canada and the U.S. are just finishing the third straight year of above-average performance. There's nothing to say they can't have a fourth. However, in order for that to happen, the economy – particularly the U.S. economy – needs to avoid recession. Interest rates need to stay low or go lower and earnings need to grow. That all fits with current consensus estimates.

Despite a lot of uncertainty around the world, a lot of the dominating trends from last year continue to hold true today. We have deemed these factors the "unstoppables" (see list to the right) – trends that will continue regardless of short-term fluctuations. Analysts anticipate that all of these "unstoppables" will offer significant investable opportunities in the coming decades.

As these powerful trends continue to reshape the global economy, understanding how they fit into your personal investment strategy is more important than ever. Our team is here to help you turn these insights into meaningful opportunities.

By aligning portfolios with these "unstoppables", investors will be well positioned to navigate uncertainty while also being able to capture opportunities as they emerge.

AI spending – Companies view AI as a matter of survival. Non-tech companies are also increasing their AI investments, despite uncertain returns.

Renewable power – The cost of renewable power has plummeted, making it the cheapest form of electricity generation in most economies. This is an economic driver that's pushing utilities towards renewables, with installation rates surpassing estimates.

Aging Population – As working-age populations decline, economies face challenges in growth and increased costs. However, this also presents opportunities for businesses catering to the elderly.

Electrification of everything – Cheaper electricity means more will be used. Many industrial processes fueled by fossil fuels today will transition to lower cost renewables over the coming decades.

Defense spending – Defense spending appears to be set on a course of steadily rising expenditure in response to worries about Russian expansionism and Chinese military build-up.

Early 2026 Tax Tips

When the end of the year approaches, many individuals place a greater focus on tax planning to minimize their income tax liability. Beyond the end of the year, however, there are some areas of tax planning strategies that may only be available early in the new year. With that in mind, here are some of the strategies that have deadlines in 2026.

2026 RRSP Contribution Deadline

The deadline for you to contribute to a registered retirement savings plan (RRSP) that can be claimed as a 2026 tax deduction is March 2, 2026. The RRSP contribution limit for 2026 is 18% of your salary up to a maximum of $32,490.

2026 Contribution Room

It is generally a good idea to contribute to your RRSP as soon as possible to maximize the tax-deferred income growth in your plan. But keep in mind that January 1 is the earliest date that you can make a 2026 RRSP contribution using the new room that is created from your prior year's earned income without triggering an overcontribution penalty.

If you want to make an RRSP contribution early in 2026 calendar year, you may need to estimate your 2026 RRSP deduction limit. To estimate your 2026 RRSP deduction limit, take 18% of your previous year's (2025) earned income up to the RRSP dollar limit of $32,490 for 2026, and subtract any 2025 pension adjustment.

We are happy to assist you in determining your contribution limit for 2026, so please do not hesitate to reach out if you have any questions.

Tax-Free Savings Account (TFSA)

You should also consider making a contribution to your TFSA early in the 2026 calendar year to maximize your potential for tax-free growth in your plan. The TFSA contribution limit (per-year) is as follows:

• $5,000 for the years of 2009 to 2012
• $5,500 for 2013 and 2014
• $10,000 for 2015
• $5,500 for 2016, 2017 and 2018
• $6,000 for 2019, 2020, 2021 and 2022
• $6,500 for 2023
• $7,000 for 2024 to 2026

If you've been eligible to open a TFSA since 2009 and have not yet contributed to one, your contribution limit would be $109,000 as of January 1, 2026.

First Home Savings Account (FHSA)

If you are saving to purchase your first home, consider contributing to a FHSA account in 2026. The FHSA combines features of both an RRSP and a TFSA, allowing contributions to be tax deductible while withdrawals for a qualifying home purchase are tax-free.

Eligible individuals can contribute up to $8,000 per year (from the time the account is opened), up to a lifetime maximum of $40,000. It is important to note that any unused contribution room carries over to the next year. Annual contributions can help support your long-term homeownership goals.

The Henderson Capital Management team.

Stephen L Henderson | Senior Portfolio Manager |Henderson Capital Management | RBC Dominion Securities Inc. | 60 Hunter Street East, Peterborough, ON K9H 1G5 | Telephone  (705) 743-4378  or 1-800-429-9507| Fax (705) 743-4516 

Sarah Sackville | Associate Advisor | Henderson Capital Management | RBC Dominion Securities Inc. | T. 1-800-429-9507 | D. 705-743-4492 | F. 705-743-4516 | 60 Hunter Street East, Peterborough, ON K9H 1G5

This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor... RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ® / TM Trademark(s) of Royal Bank of Canada. Used under licence. © 2026 RBC Dominion Securities Inc. All rights reserved.