Monthly Archives: September 2013

Terry Broaders

Weekly Update September 30 2013

“You Can Lead A Man To Congress But You Can’t Make Him Think” -Milton Berle


Markets Cautious Ahead of U.S. Congress Action

The Toronto stock market closed flat on Friday, capping a session where traders opted for caution going into the weekend amid the possibility of a U.S. government shutdown early next week. The S&P/TSX composite index inched up 2.46 points to 12,844.08 as BlackBerry turned in a huge quarterly loss and dismal sales figures. The Canadian dollar turned higher amid rising commodity prices, up 0.3 of a cent at 97.01 cents.  There was skepticism that Congress can pass a funding bill to keep the U.S. government operating after Oct. 1, when its new fiscal year starts. Also, the U.S. borrowing limit needs to be raised before Oct. 17. But Republicans want to tie the moves to defunding the Affordable Care Act, otherwise known as Obamacare, and slash spending. “They can’t afford to mess around on this,” says Wes Mills, chief investment officer at Scotia Asset Management PM Advisor Services. “They’re digging in their heels because they’re tying the Obamacare passage to the debt ceiling. And ultimately, if they push too hard on that, it’s going to rattle markets big time.” The Dow Jones industrials dropped 70.06 points to 15,258.24, the Nasdaq was 5.83 points lower to 3,781.59 and the S&P 500 index was down 6.92 points to 1,691.75.


Get Off Your Gluteus Maximus

How much would the federal government have to pay you to get off the couch and into a gym?The Parliamentary Budget Office has released a cost estimate for creating an adult fitness tax credit. It would allow taxpayers “to claim a non-refundable tax credit of up to $500 in eligible physical activity programming costs against their taxable income each year at a rate of 15% (i.e. the maximum annual amount to be offset against an individual’s taxes payable would be $75).  The credit wouldn’t be transferable, so only the person who sweats it out can claim it. Come on people, that’s more than 20 cents a day!  Get moving!


Market Update As Of September 27 2013

The TSX closed at 12844, up 38 points or 0.30% over the past week. YTD the TSX is up 2.42%.

The DOW closed at 15258, down -193 points or -1.25% over the past week.YTD the DOW is up 16.44%.

The S&P closed at 1692, down -18 points or -1.05% over the past week.YTD the S&P is up 18.65%.

The Nasdaq closed at 3782, up 7 points or 0.19% over the past week.YTD the Nasdaq is up 22.36%.

Gold closed at 1337, up 11.00 points or 0.83% over the past week.YTD gold is down -20.42%.

Oil closed at 102.67, down -2.16 points or -2.06% over the past week.YTD oil is up 10.91%.

The USD/CAD closed at 1.0304, up 0.0002 points or 0.02% over the past week.YTD the USD/CAD is up 4.33%.



Sources: Bloomberg; Investment Executive;

Terry Broaders

Weekly Update September 10 2013

“People Like Controversy Because That’s What Sells” – Miley Cyrus


TSX Slips

Stocks were volatile Friday amid nervousness about possible military intervention in the Syrian civil war.  The S&P/TSX composite index slipped 24 points to 12,820. U.S. indexes were slightly lower  with the Dow Jones losing 15 points  after giving up early, solid gains in the wake of comments from Russian President Vladimir Putin, who told the press at the end of the G20 summit in St. Petersburg that his country would continue to “assist” Syria even if the Mideast country is attacked.  President Barack Obama says he will address Americans about Syria on Tuesday while he seeks public support and congressional authority for military action against the regime of Syrian President Bashar Assad as punishment for a chemical attack against civilians in suburban Damascus.  Syrian has cast a shadow over trading ever since that chemical attack Aug. 21 but some analysts think sentiment could well improve after it is known just what the U.S. will decide to do. “At the end of the day, when it’s resolved it will be more of a relief than anything,” said Chris King, portfolio manager at Morgan, Meighen and Associates.


Job Growth Boosts Loonie

The Canadian dollar surged almost a full US cent on Friday.  The loonie found support from a Canadian jobs report, which beat expectations, jumping 0.86 cents to 96.02 cents US as Statistics Canada reported that the economy created 59,000 positions last month.  But the growth was mainly for part-time employment as the unemployment rate fell to 7.1% in August from 7.2% the previous month. The consensus had called for the Canadian economy to have created about 20,000 jobs in August. The Canadian currency was also lifted by an American dollar that backed off after the U.S. Labor Department reported jobs growth of 169,000 last month, narrowly missing expectations of about 175,000 jobs. The U.S. jobless rate was 7.3%, down from 7.4%.


Blog Links

What Do We Do For You Exactly ?

What Bill Gates Said About Warren Buffet

How Do You Feel About Restaurant Tips?

RRSPs For The Long and Short Term


Market Update as of September 6 2013

 The TSX closed at 12821, up 167 points or 1.32% over the past week. YTD the TSX is up 2.23%.

The DOW closed at 14923, up 113 points or 0.76% over the past week.YTD the DOW is up 13.88%.

The S&P closed at 1655, up 22 points or 1.35% over the past week.YTD the S&P is up 16.06%.

The Nasdaq closed at 3660, up 70 points or 1.95% over the past week.YTD the Nasdaq is up 18.41%.

Gold closed at 1392, down -3.00 points or -0.22% over the past week.YTD gold is down -17.14%.

Oil closed at 110.2, up 2.53 points or 2.35% over the past week.YTD oil is up 19.05%.

The USD/CAD closed at 1.041, down -0.0126 points or -1.20% over the past week.YTD the USD/CAD is up 5.41%.


Sources: globeadvisor; Investment Executive; Bloomberg:


Odette Morin

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Go ahead and call us anytime for anything regarding money or your finances!!



Odette Morin

What Bill Gates said about Warren Buffet

Bill Gates started a LinkedIn page.  He posted this about Warren Buffet, which I thought I should share.

“The first thing people learn from Warren, of course, is how to think about investing. That’s natural, given his amazing track record. Unfortunately, that’s where a lot of people stop, and they miss out on the fact that he has a whole framework for business thinking that is very powerful. For example, he talks about looking for a company’s moat—its competitive advantage—and whether the moat is shrinking or growing. He says a shareholder has to act as if he owns the entire business, looking at the future profit stream and deciding what it’s worth. And you have to be willing to ignore the market rather than follow it, because you want to take advantage of the market’s mistakes—the companies that have been underpriced.

I have to admit, when I first met Warren, the fact that he had this framework was a real surprise to me. I met him at a dinner my mother had put together. On my way there, I thought, “Why would I want to meet this guy who picks stocks?” I thought he just used various market-related things—like volume, or how the price had changed over time—to make his decisions. But when we started talking that day, he didn’t ask me about any of those things. Instead he started asking big questions about the fundamentals of our business. “Why can’t IBM do what Microsoft does? Why has Microsoft been so profitable?” That’s when I realized he thought about business in a much more profound way than I’d given him credit for.”

Two very neat guys. Indeed!

Bill & Warren

Odette Morin

How do you feel about restaurant service tips added directly to the bill?

One of my favorite thing to do is going out somewhere cool to eat. I love my food and wine and the service I get is very much part of my evening experience.

The new restaurant trend nowadays is to add tips on your bill. How do you feel about that? This article claims that a San Francisco restaurant improved service and customer satisfaction when it added 18% for tips directly to the diners” bill.  I personally am a big tipper if I  have  good service and a really big tipper if I  have  a really good service. Tipping is essential for restaurant workers. It is part of their earnings.

Personally, I don’t mind if they add it to the bill but would rather have my say and demonstrate my satisfaction that way. How do you feel about this new trend? Would you rather tip what you want or see it added to the bill? and what do you think of 18% as a rule?

Read the full article here


Odette Morin

RRSPs for the long-term and the short-term

My husband’s fabulous brother and niece are visiting this week. At breakfast this morning the conversation gravitated to RRSPs. Our niece said that she had RRSP funds invested at very low risk. I pointed out that since she is so far from retirement, she could focus more on growth and have mostly equities in her portfolio. She then asked, “even if I want to use the RRSP for the homebuyers Plan?”

Excellent question!! Since she is planning to buy her first home within 2 to 5 years, she should not invest the funds. They should go to a risk-free high interest saving RRSP account or a very low volatility fund. Only her “long-term RRSP” should indeed be invested in mostly equities. I also added that she should really have two RRSPs, one that is for Long-term growth and retirement, and another one that is short-term for the home buyers plan. Of course, she instinctively knew that because she is very smart and good with money.

young adultsNever hesitate to ask for advice in any event, and give all the facts to your advisor, it helps make informed decisions!!