Good Day, January was an eventful month. The currencies of multiple emerging market countries around the world experienced aggressive declines given the Fed’s decision to slow its bond buying program. I’ve received questions from readers about the relationship between global currencies and Fed tapering so here’s a brief explanation. The suffering US economy of 2008.
Good day, I mentioned earlier this month that we have been and continue to add European exposure to our portfolios. There are many reasons we favour this space but here are just a few. Stocks in Europe are cheap, in fact about half the price of US stocks from a price to earnings point of.
Good Day, I reviewed The Finish Line archives this morning and in the January commentaries of the last three years, I stated that the US market would outperform Canada’s. The total return including dividends of the TSX for the three year period is 10.56% while the S&P 500’s three year return is 55.97%. In addition.
Good Day, Perhaps you’ve watched the news and heard about the Deutsche Bank study released this week stating that Canadian real estate is overpriced by 60%. In addition many economists agree that Canadian homes are extremely overvalued and the market is poised for a significant correction. On the other hand, real estate companies tell us.
Good day, A paper published by the National Bureau of Economic Research found that Warren Buffett’s Berkshire Hathaway has been the best performing stock since 1976. The report went on to say that Buffett’s success has come from the use of leverage coupled with purchasing high quality companies when discounted by the general market..
Good day, While the stock market continues its relentless climb I dug a little deeper to see how the underlying economy is fairing. According to Bloomberg, a U.S. report showed this week that consumers spent money at the fastest pace in three months this last October. This will likely continue into the holiday season which.
Good day, Over the last couple of weeks the debt ceiling story has monopolized headlines and investors have ignored economic data and company reports. As the anxiety over the debt ceiling has subsided, the market has returned to its ongoing gradual climb. There are four main factors which I believe are contributing to the rally..
Good day friends, While I’m thankful today that American politicians seem to have come to their senses, it’s very easy these days to lose sight of the simple things that truly make us happy. Even the smallest holiday has become a commercial activity with all kinds of goodies that apparently should make one happy. Luckily,.
Good Morning, Bespoke Investment Group, the American investment and research firm along with Bloomberg, have been tracking and comparing the trading patterns of 1954 and 2013. The companies found that day-to-day price moves for the S&P 500 are almost identical. In 1954, the S&P500 recovered all of its losses from the great depression but this.
Good Day, In 1984, two engineering students came up with an idea which led to a mobile communication giant, shaping the multi-billion dollar smart phone business we know today. Mike Lazaridis of the University of Waterloo & Douglas Fregin at the University of Windsor founded Research In Motion Ltd., which in its early days provided.
Good Day, For decades, bonds have provided steady income for investors as well as a means to balance out and reduce the volatility of equities. While bonds could continue to present some short term opportunities, rising interest rates will unfortunately have a negative impact on fixed income investing. This presents a conundrum for the investment.
There will come a time when I will write about a poor market outlook, likely due to overvalued stocks and overly optimistic views. Fortunately we are not there today. The sluggish but growing global economy suggests the bull market is nowhere near its end. This week the U.S. Commerce Department reported that retail sales in.
Investors around the world waited for a statement from the Federal Reserve containing definitive plans to either taper down its bond purchasing campaign, or leave it as is. Unfortunately, the Fed’s news was very similar to that of a few months back – no definitive plans. Although most U.S. officials feel tapering should begin at.
For two years we have stressed the importance of maintaining a bias towards US equities. Stock valuations were more attractive than they had been in a number of years and given China’s slower economic growth, the TSX was bound to disappoint. This has paid off for our assets under administration. In 2012 the TSX saw.
Good day, Of the many tax planning strategies available, an often overlooked but effective approach is the use of a spousal loan. Our clients regularly ask if they can hold their non-registered investments within the account of the lower income spouse. If the funds didn’t originate from the lower income spouse to begin with, the.
Good morning friends, It’s no secret that Canadians pay more to their cell phone service provider than just about any others around the world. Now could you ever imagine that the three big Canadian telecoms (Rogers, Telus & Bell) would ever get along and team up? With the proposed entry of American telecom provider Verizon.
Times continue to change, but we humans can be slow to adapt. This seems to also apply to personal investing. Things were much easier in the past – with normalized interest rates one could park their nest egg in GICs or government bonds with no need to understand financial markets. The era of the Defined.
With the first half of 2013 behind us, I thought I’d summarize market developments since the start of the year and share my thoughts on positioning portfolios for the period ahead. “The greatness of America lies not in being more enlightened than any other nation, but rather in her ability to repair her faults.” Alexis.
The market rally continues this week as the S&P 500 posted its biggest three day gain since January. The S&P 500 is showing a 1.2% gain for the week, the Dow a 1.25% gain and the surprise this week is the TSX is also up 1.2%. While the market is continuing to digest the Fed’s.
This was an interesting week for global markets as investors awaited for Bernanke to announce the central bank’s plan for ongoing economic intervention. For those of you that attended our Sandwich Club session this week, you might remember we discussed where we felt we stood within the current bull market cycle. With varying opinions on.
Perhaps the modest correction I’ve been awaiting has taken place over the last couple of weeks or perhaps there’s yet a bit more to come. In any case the market continues to show strength given decent fundamentals. While we’re about 4 years into the current bull market, this period represents less than the historical average.
Last week I took my daughter to Lynwood, Washington as she has wanted an ‘American Girl’ doll for a number of months now. For those who don’t know, American Girl isn’t just a doll but rather an entire experience. There are multiple versions of the dolls with different skin tones; eye shapes etc., so that.
Either the correction I’ve been writing about was short lived last week, or the dead cat has bounced higher than expected. The Dow shows a 1.7% gain in just 6 days, the S&P 500 a 2.9% gain in 7 days and the Toronto exchange is up 2.3% in 8 days. Commodities have shown nice gains.
Over the last couple of months I have been writing about the potential for a market correction. We have seen unprecedented growth particularly south of the border where the S&P 500 has seen over 120% in cumulative growth over a four year period. Despite the fact that valuations remain fair, the market’s forward thinking has.
I turned on the TV while on the treadmill this morning only to see gold drop some $50. A few minutes in I looked up again and it had dropped another $20 representing about a 4% decline from yesterday’s price. As I write this gold is hovering just above $1,500.00 an ounce with a $60.
Investors witnessed some volatility this week with Tuesday and Wednesday seeing declines. US financials as well as energy shares on both sides of the border were sold off mid week due to worse than expected economic data. The estimate of 200,000 new jobs in March came in below expectation at 158,000 new jobs according to.
For those that are away enjoying sunny skies somewhere, you’ll be glad to know we have some sunny skies of our own today. Looking at my screens I see most North American markets down between three quarters to a full percent. It seems the trend has been to buy on dips as of late, but.
The Dow Jones Industrial Average reached an all time high this week, surpassing its 2007 levels. This begs the question of whether or not this will continue. Although short term volatility is unpredictable, here are some of the fundamentals to consider which should impact prices over the next 12 months: Valuations – If the 30.
The volatility index has gone up as of late and this week’s fluctuation is another example. The fundamentals for US markets are strong and mid to long term, equity investors should outperform those investing in debt. Despite the run up I believe the market is due for a modest correction. You can test your knowledge.
I had a fun conversation with a client this week. Despite holding somewhat defensive investments, we reflected on the natural fears she experienced during 2008. With the significant market rally over the last few years, she was quite upbeat. The psychiatrist in me reminded her that despite learning from this experience, she will likely have.