Hello, I’ve commented before on the importance of international exposure for Canadian investor accounts but the phenomenon known as Home Bias continues to exist. Once again, last year US equities significantly outperformed their Canadian counterparts. Looking at our screens, in just a little over a month [year to date (Jan 2 – Feb 5)], the.
Good day, Over the last few years there has been a shift towards Managed Accounts in the middle to high net worth investment space. Managed Accounts differ from trading accounts in that retail investors don’t have to approve each and every trade. While this might seem like a minor formality, it can have a huge.
Good day, Each New Year the financial markets bring about their own set of risks and opportunities, with that preparation rather than reactionary measure is key. Three things cross my mind each morning including the ongoing geopolitical tensions, uneven global economic growth given strength in the US and a lack thereof for the rest of.
Friends, Where has the time gone? We’re just a few days away from Christmas and a few more from saying goodbye to 2014. I for one love this time of year. I love seeing my children’s excitement at 6 am on Christmas day, how involved my wife gets in decorating and preparing for the various.
Hello, Oil prices continued their tumble this week and have created havoc for markets overall. The decline in other sectors should be short lived however, and will likely reverse given the positive impact of lower energy costs for the global economy. At this stage it’s difficult to tell whether oil prices have seen a bottom.
Good day, Energy investors were hoping the Organization of the Petroleum Exporting Countries would agree this week to reduce oil production in an effort to stabilize rapidly dropping oil prices. At Thursday’s meeting OPEC agreed not to reduce production and, as I type this, West Texas Intermediate crude is trading around $66 US a barrel..
Good day, Coming out of 2008 a broad range of cheap stocks have propelled markets to all-time highs. Over the last year, North American equity correlations have dropped which means that stocks (even in similar sectors) have not been moving in the same direction. This means that buying into the market without looking could prove.
Good day, A strong week for global equity markets with the S&P 500 and Dow erasing all of October’s losses and trading in record territory on Halloween day. The rally had accelerated on Thursday when US GDP growth figures came in better than estimated. The market seems to be shifting focus away from what the.
Hello, The early week sell-off has come to a halt in both the US & Canada. Oil & Gas companies which had been beat up the most are seeing the bigger gains. For some time I’ve commented that corrections are healthy for markets but a few readers have asked me to clarify. Few periods in.
Good day, The market couldn’t quite make up its mind this week, as witnessed by significant intra week swings. Investors are trying to determine if the Fed’s promise of continued low interest rates is enough to balance potential headwinds from geopolitical tensions, Europe’s economic slowdown and a slightly reduced estimate for 2015 global GDP growth..
Good day, Volatility continues this week on geopolitical turmoil and economic weakness in Europe. As I type this the S&P 500 is off 1.85% on the week, the Dow off 1.82% and the TSX is down 1.77%. The US Labour Department announced today that the unemployment rate fell to a six-year low of 5.9% in.
Happy Friday, Global markets sold off this week on escalated tensions in Russia and the Middle East. Apple had some problems of its own and the stock’s decline rippled through the tech sector. The market has been playing the game of tug of war for some time where declines on bad news are followed by advances.
Hello friends, I clearly remember the headlines and conversations as they occurred just a few years ago. Reporters, friends, family members, neighbours & cab drivers decisively predicted the collapse of the US dollar and the inevitable switch to gold as the world currency. YouTube videos were urging the public to sell all US currency as.
Friends, I remember growing up thinking Africa would forever be plagued with poverty. Although unfortunate, the prospect of economic growth had never even crossed my mind. Some 30 years later the continent has experienced some healthy growth. It seems that Africa has begun to understand its challenges and although gradually, it is making progress..
Good day, Although the S&P 500 reached an important milestone of 2000 this week, we see both risks and opportunities ahead. The Bad Geopolitical tensions continue to create economic uncertainty for Europe and any ripple effects could be felt in other parts of the world. US equities as a whole, while not overly.
Good day, The North American market sell off we witnessed two weeks ago driven by geopolitical tensions has on average reversed itself this week. On Thursday the S&P 500 closed in record territory just 10 points shy of 2000 and the Dow not far off, just 0.6% away from its recent record. While US.
Good day, In recent commentaries I mentioned I was surprised by how little geopolitical risks had impacted markets but over the last two weeks, it seems these issues have finally caught up to the markets. Although North American indices are up roughly 1% today, looking at my screens the S&P 500 is down 3.94% from.
Good day, The S&P500 hit another record this week on good corporate earnings and improved jobless claims with a 7.6% year to date advance as of Thursday. According to Bloomberg, 77% of S&P500 companies that have reported earnings so far have beaten estimates. Although no official numbers have been released for second quarter GDP growth,.
Good day, One of the most inflationary commodities today is food. While US inflation hovers around the 2% range, food prices continue to rise at a much more rapid rate. According to the Labour Department food accounts for 13% of spending in the United States. As the world spends more on basic staples, less is.
Good day, One aspect of Behavioural Finance deals with irrational behaviour of individual investors. As human beings, we have psychological biases which inhibit impartial judgement when it comes to dealing with money. Most often this counterproductive behaviour happens subconsciously but ultimately impacts the outcome of our financial wellbeing. While there are many examples of psychological.
Good day, In my May 9th commentary I listed a number of advanced tax planning ideas which are generally overlooked by retail investors. In an effort to continue with the tax theme I thought I’d comment on the merits of the IPP (Individual Pension Plan). The IPP is an initiative which was introduced by the.
Good day, When analyzing asset classes it’s important to recognize that the trend isn’t always your friend. While opportunities to make money exist in every economy, opportunities to lose money are perhaps more abundant. Through our research we’ve narrowed down a few bubble prone asset classes and found Greek & Spanish bonds as well as.
Good day, The US Commerce Department released its GDP figures this week showing negative growth for the last quarter. The report showed a 1% annualized decline, worse than most economists had expected. A recession is defined as two negative quarters of GDP growth but will we see economic contraction during the current quarter? Some.
Good day, As mentioned in my last commentary, over the upcoming weeks I will include writings on advanced tax strategies seldom applied by most Canadians. This week I thought I would provide a brief description of the PHSP (Private Health Services Plan). The Canada Revenue Agency approved plan allows businesses to convert all health, medical.
Good day, The retail investor is inundated with information from economists, reporters and the investment advisory community. Headlines and talk shows aim to predict the future as eager listeners seek clues in order to protect and grow investment dollars. I suppose to some extent I too am guilty of contributing to this phenomenon given my.
Good day, North American markets climbed this week despite increasing tensions in the Ukraine. For the time being investors have learned how to digest headlines and perhaps they are better equipped to understand risk. The world has experienced many troubling events during the last decade but investors have learned that even under tremendous political.
Good day, A tougher week for North American markets with the Dow sliding 0.53% for the week, the S&P 500 0.45% and the TSX 0.27%. While we had some strong earnings reports this from tech players including Apple, many of the tech names which have seen some of the largest gains during this bull cycle.
In 2011 US President Obama made a speech discussing the country’s goal to becoming less reliant on importing oil from abroad. According to the EIA (Energy Information Administration), since the speech, Texas and North Dakota have doubled crude output and Texas now pumps more oil than Iran. Many European and West African crude.
Good Day, As you know I’ve favoured US stocks over Canadian for over 4 years now. I’ve stated in recent commentaries that the TSX should catch up at some point but the timing is somewhat uncertain. The TSX Total Return index (including dividends) has shown strong returns of approximately 13% in 2013 but this doesn’t.
Good day, Last Wednesday, US Fed chair Janet Yellen stated the Fed Fund Rate would likely increase about six months after the bond buying program would end. This would bring potential rate hikes in the US as early as spring of 2015. In the past interest rate hikes in the US have been closely.