“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