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Monthly Archives: July 2013

Terry Broaders

Weekly Update

“People Don’t Take Trips…Trips Take People” -John Steinbeck

 

Quiet Week On Markets

The Toronto stock market closed lower Friday amid strong earnings from the tech sector and easing commodity prices as China moves to reform its industrial sector.  The S&P/TSX composite index lost 21 points to 12,648. The Canadian dollar was off 0.09 of a cent to 97.34 cents US. U.S. indexes were largely listless despite data showing consumer sentiment at a six-year high. The University of Michigan’s consumer confidence index came in at 85.1 for July. The Dow Jones industrials closed up 3 points to 15,559, the Nasdaq composite index rose 8 points to 3,613 and the S&P 500 index added 1.4 points to 1,692.  Both Toronto and New York indexes have racked up solid gains this month, with the Dow and S&P 500 establishing a string of record highs on positive economic data and earnings.

 

Canadians Getting Richer

A new calculation shows Canadians are getting richer. The report by Environics Analytics says Canadian average household net worth topped $400,000 at the end of 2012 for the first time in history at $400,151, thanks to a 5.8% pickup during the year. The report attributes the improvement to a 5.4% increase in liquid assets and a 5.1 gain in real estate values, in conjunction with a more modest 3.3% rise in debt.The new data shows the Canadian households are still richer than their American counterparts, which had a US$381,086 average wealth at the end of 2012. But the gap is closing. That’s because while Canadian household debt rose modestly by 3.3%, in the U.S. debt actually declined by 2.4% last year.
And debt accumulation has slowed markedly since last July, when Ottawa imposed stricter mortgage rules to slow down the housing market. The Bank of Canada has long warned that Canadian households owe too much, at more than 160% of annual disposable income. The data shows households in Regina had the biggest jump in net worth last year, rising 11.2% to $391,826. That was fuelled by the strongest growth in real estate holdings among cities and the second fastest rise in liquid assets, behind Saskatoon, Environics Analytics said. Hamilton experienced the second fastest growth in net worth among major cities, up 9.5% to $420,515. Vancouver, Calgary and Toronto remain Canada’s wealthiest cities.

 

Market Update as of July 26 2013

The TSX closed at 12648, down -37 points or -0.29% over the past week. YTD the TSX is up 0.85%.

The DOW closed at 15559, up 15 points or 0.10% over the past week.YTD the DOW is up 18.73%.

The S&P closed at 1692, changed 0 points or 0.00% over the past week.YTD the S&P is up 18.65%.

The Nasdaq closed at 3613, up 25 points or 0.70% over the past week.YTD the Nasdaq is up 16.89%.

Gold closed at 1333, up 39.00 points or 3.01% over the past week.YTD gold is down -20.65%.

Oil closed at 107, down -1.34 points or -1.24% over the past week.YTD oil is up 15.59%.

The USD/CAD closed at 1.027, down -0.009 points or -0.92% over the past week.YTD the USD/CAD is up 4.02%.

 

Sources: Bloomberg: Investment Executive; Environics; advisor.ca

 

Terry Broaders

Weekly Update July 23 2013

“Of All the Things I’ve Lost I Miss My Mind the Most” -Ozzy Osbourne

 

Positive Week for Markets

Stocks around the world had a generally solid week especially after U.S. Federal Reserve Chairman Ben Bernanke indicated that the scale and scope of the central bank’s monetary stimulus may remain in place for longer than many in the markets had been predicting.  The Toronto stock market closed higher Friday as energy stocks advanced while oil prices hit a 16-month high and traders took in a mixed batch of U.S. earnings. The S&P/TSX composite index gained 17.7 points to 12,646.55 after closing higher for three of the past four sessions. The Canadian dollar was up 0.04 of a cent to 96.42 cents US as new data showed that inflation was well under control in June. Statistics Canada said that inflation came in at an annualized rate of 1.2%, in line with economist expectations and up from a low rate of 0.7% the previous month.
U.S. indexes were lower after Google Inc. and Microsoft both missed forecasts for earnings and revenue while General Electric beat expectations. The Dow Jones industrials lost 25.96 points to 15,522.58, the Nasdaq was down 23.21 points to 3,588.07 and the S&P 500 index slipped 0.45 of a point to 1,688.92.

Bernanke Reassures On Stimulus

Federal Reserve Board Chairman Ben Bernanke said in testimony before congress this week that the Fed’s timetable for reducing its bond purchase is not on a “preset course”. He said the Fed could increase or decrease the amount based on how the economy performs. Markets went through weeks of volatility after Bernanke first mentioned in late May that the Fed could start tapering its bond purchases later this year. Stocks plunged at the time. Since then, the Fed has tried to soothe nerves by stressing that the Fed won’t pull back on its stimulus unless the evidence was clear that the economy and the jab market were improving. Bernanke cautioned that the Fed wants to see substantial progress in the job market before scaling back its $85 billion in monthly bond purchases.

Market Update as of July 19 2013

The TSX closed at 12685, up 223 points or 1.79% over the past week. YTD the TSX is up 1.15%.
The DOW closed at 15544, up 80 points or 0.52% over the past week.YTD the DOW is up 18.62%.
The S&P closed at 1692, up 12 points or

0.71% over the past week.YTD the S&P is up 18.65%.
The Nasdaq closed at 3588, down -12 points or -0.33% over the past week.YTD the Nasdaq is up 16.08%.
Gold closed at 1294, up 10.00 points or 0.78% over the past week.YTD gold is down -22.98%.
Oil closed at 108.34, up 2.30 points or 2.17% over the past week.YTD oil is up 17.04%.
The USD/CAD closed at 1.0368, down -0.0029 points or -0.28% over the past week.YTD the USD/CAD is up 4.98%.

 

Sources: advisor.ca; Bloomberg; globeadvisor; Investment Executive

Terry Broaders

Weekly Update July 16 2013

“The Tolerance of Differences is the Measure of Civilization” -Vincent Massey

 

Best Week for TSX in 7 Months 

Canada’s main stock index fell on Friday due to a drop in shares of gold and energy producers, but the U.S. Federal Reserve’s support for monetary stimulus helped the index post its biggest weekly gain in more than seven months. The Toronto market eased after recording gains in the previous four sessions and hitting a one-month high earlier in the day. It still ended the week up 2.7%. The S&P/TSX composite index fell 31.09 points to 12,462.17. The TSX had jumped nearly 200 points in the previous session in the wake of reassurances from U.S. Federal Reserve chairman Ben Bernanke that the central bank was in no hurry to curtail key economic stimulus measures. The Canadian dollar was off 0.1 of a cent at 961.19 cents US.
Boeing dragged the Dow lower after news of a fire on board an empty 787 Dreamliner plane at London’s Heathrow Airport. Also, Thomson Airways says one of its Boeing 787s travelling from England to the U.S. had to turn back after experiencing a technical issue. Boeing shares fell 4.65 per cent to $101.91 (U.S.) a barrel. The Nasdaq gained 21.78 points to 3,600.08 and the S&P 500 moved 5.17 points higher to a record high close of 1,680.19.

 

Market Update as of July 12 2013

The TSX closed at 12462, up 327 points or 2.69% over the past week. YTD the TSX is down -0.63%.

The DOW closed at 15464, up 328 points or 2.17% over the past week.YTD the DOW is up 18.01%.

The S&P closed at 1680, up 48 points or 2.94% over the past week.YTD the S&P is up 17.81%.

The Nasdaq closed at 3600, up 121 points or 3.48% over the past week.YTD the Nasdaq is up 16.47%.

Gold closed at 1284, up 62.00 points or 5.07% over the past week.YTD gold is down -23.57%.

Oil closed at 106.04, up 2.84 points or 2.75% over the past week.YTD oil is up 14.55%.

The USD/CAD closed at 1.0397, down -0.0179 points or -1.69% over the past week.YTD the USD/CAD is up 5.28%.

 

Sources: Bloomberg; Investment Executive; advisor.ca

Odette Morin

Planning for Vacations

Terry and I are just back from a fabulous vacation in the South Pacific today. I sure know that I will be planning my next vacation real soon and need to restart my monthly saving to my travel fund now! A high interest savings account is perfect for this short term objective. Contact us to set one up if you don’t already have one that pays at least 1.55% and allow monthly contributions.

Bora 3

 

Terry Broaders

Weekly Update July 9 2013

“Honesty Is The First Chapter In The Book of Wisdom” -Thomas Jefferson

 

Mixed Markets

North American markets split direction near midday Friday  with Toronto lower and New York higher as jobs reports in both Canada and the United States came in better than anticipated.  The S&P/TSX composite index dropped 31 points to 12,134. The Canadian dollar was down 0.53 of a cent to 94.59 cents US.
Statistics Canada says the official unemployment rate remained unchanged at 7.1% last month as employers pulled back after a wild month of hiring in May.  The agency says the economy shed a mere 400 jobs in June, a statistically insignificant number, but better than the 12,500 jobs economists had expected would be lost in the hangover from the hiring binge seen in May, when 95,000 new jobs were added.  On Wall Street, the U.S. jobs numbers were better received, raising hopes that the U.S. economy is headed towards a better second half of the year. The Dow Jones industrials moved 147 points higher to 15,135, the Nasdaq gained 35 points to 3,479 and the S&P 500 index ticked up 16 points to 1,631.  The U.S. Labor Department said American employers added 195,000 jobs in June and hiring was more robust in the two previous months than earlier estimated, suggesting job growth is accelerating.

 

 

Market Update as of July 5 2013

The TSX closed at 12135, up 6 points or 0.05% over the past week. YTD the TSX is down -3.24%.

The DOW closed at 15136, up 226 points or 1.52% over the past week.YTD the DOW is up 15.51%.

The S&P closed at 1632, up 26 points or 1.62% over the past week.YTD the S&P is up 14.45%.

The Nasdaq closed at 3479, up 76 points or 2.23% over the past week.YTD the Nasdaq is up 12.55%.

Gold closed at 1222, down -8.00 points or -0.65% over the past week.YTD gold is down -27.26%.

Oil closed at 103.2, up 8.17 points or 8.60% over the past week.YTD oil is up 11.48%.

The USD/CAD closed at 1.0576, up 0.0059 points or 0.56% over the past week.YTD the USD/CAD is up 7.09%.

 

Sources: Bloomberg; Investment Executive, advisor.ca