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.
Over many years bonds have added a sense of security and balance to investment portfolios. As equity returns have not been stellar during the first decade of the new millennium, bond holdings have exceeded the historical average. So far the second decade of the millennium has created prosperity for equity investors. Equity markets have experienced.
In last week’s comments I mentioned 2012 was a strong year for US markets while the Canadian market only saw modest gains. The question I’ve been receiving over the last few weeks is whether or not this trend will continue. The US economy indeed will face long term challenges due to its high debt level..