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Monthly Archives: November 2013

Terry Broaders

Weekly Update November 26 2013

“Do Not Pray For Easy Lives. Pray To Be Stronger” -John Fitzgerald Kennedy

 

Dow Jones and S&P 500 Reach New Heights

Both the S&P and Dow closed at new records today. The broad-based S&P 500 added 8.79 points at 1,804 while the Dow Jones Industrial Average added 52.85 points to close at 16,062. The S&P/TSX composite index edged up 3.01 points to 13,478, led by rising industrial and financial stocks. The Dow gained 0.7 per cent this week, its seventh straight weekly gain, the longest streak since January 2011, said Bloomberg. The S&P rallied after three days of losses. “There’s not a lot of negative news to slow stocks,” Sam Stovall, chief investment strategist at Standard & Poor’s Capital IQ, told AFP. “Little by little, people are throwing in the towel, meaning they are joining in on the rally.”  On the inflation front, Statistics Canada reported that consumer prices rose at an annual rate of 0.7 per cent in October, down from 1.1 per cent in September and lower than the 0.9 per cent rate that had been expected.

 

Four in 10 Retirees Are Not Retiring On Time

While 80% of Canadians nearing retirement believe they’ll choose when they leave their careers, in reality 41% of retirees say they left sooner than expected, shows the RBC 2013 Retirement Myths & Realities Poll. Often employers asked them to step down (41%) or health issues sped up their departure (22%).  The survey also shows 20% of retirees had one month or no advance notice before retirement, with 65% reporting they had notification one year or less before their retirement date.  The poll also showed of fully retired Canadians responded they had retired “at the right time”

 

BLOG LINKS

76% of Canadians Admit Spending Too Much 

Markets On Fire. Is the End Close?

 

Market Update as of November 22, 2013

The TSX closed at 13478, down -5 points or -0.04% over the past week. YTD the TSX is up 7.47%.

The DOW closed at 16065, up 103 points or 0.65% over the past week.YTD the DOW is up 22.60%.
The S&P closed at 1805, up 7 points or 0.39% over the past week.YTD the S&P is up 26.58%.
The Nasdaq closed at 3992, up 6 points or 0.15% over the past week.YTD the Nasdaq is up 29.15%.
Gold closed at 1243, down -46.00 points or -3.57% over the past week.YTD gold is down -26.01%.
Oil closed at 94.83, down -0.07 points or -0.07% over the past week.YTD oil is up 2.44%.
The USD/CAD closed at 1.0514, up 0.0075 points or 0.72% over the past week.YTD the USD/CAD is up 6.46%.

 

Sources: Bloomberg, advisor.ca, Investment Executive

Terry Broaders

Weekly Update November 19 2013

“Please Accept The Noble Offer of My Steady Hand and Compassionate Heart” -Charlie Sheen to Rob Ford

 

TSX Closes Higher

The Toronto stock market closed higher Friday amid optimism that the U.S. Federal Reserve won’t be cutting stimulus as early as thought. The S&P/TSX composite index rose 51 points to 13,482. The Canadian dollar rose 0.19 of a cent to 95.72 cents U.S. on strong manufacturing data for September. Statistics Canada reported that manufacturing shipments rose 0.6% to $49.9 billionin September. US indices were higher with the Dow Jones ahead 85 points to 15,951. Markets continued to find kift after the woman most likely to succeed Ben Bernanke at the helm of the fed made it clear that she’s prepared to continue the central bank’s low interest policies to keep the U.S. economic recovery on track.

 

Debt Hurts Families

Almost half (44%) of Canadian parents are concerned about how their chidren would be affected if they aren’t able to reduce their amount of debt. A study of Canadian parents from debt-assistance firm MNP Ltd.shows that while most parents believe that they’re competent financial role models for their kids, many believe that how they handle their finances is having a negative impact on their children. Fifty-six per cent of Candian Families avoid discussing family finances with their children. One in five say their relationship with their children has been impacted or strained by their current finacial situation. Twenty-three per cent of parents agree that their children asking them questions about money and family finances causes them anxiety.

 

Sources: Bloomberg, Investment Executive, advisor.ca

Odette Morin

76% of Canadians admit to be spending too much

 

impulse-shopping

Many Canadians feel they’ve lost control of their finances and are unable to break free from bad spending habits. In fact, 76% admit they spend too much money, and have a hard time stopping the frivolous spending, finds a November 12, 2013 study by Capital One Canada and Credit Canada Debt Solutions.  The top vices cited include going out for dinner (29%), buying cigarettes (26%), going out for lunch (25%), clothes shopping (24%) and buying lottery tickets (24%).

“Impulse purchases may seem harmless in small doses but they quickly add up and pull you into a debt spiral,” says Laurie Campbell, CEO of Credit Canada Debt Solutions.

Gain some control and deny yourself once in while. It feels empowering to be in control and only buy the things that really matter.  It gets easier with practice. 

 The very best tip I give people who have problems with shopping is to use cash for shopping and play money.  It is very difficult to part from cash.  Try it, you are sure to stay within your budget!!

Odette Morin

The Markets are on Fire. Is the end close?

North American markets racked up solid gains throughout October but they have stalled somewhat amid increasing uncertainty about when the Fed might start tapering its US$85 billion of monthly bond purchases, particularly after strong employment and economic growth reports released last week.

upward-trend-330

Analysts say that U.S. markets could be in for some kind of retracement with the Dow industrials up more than 20 per cent year to date.  Traders also looked ahead to Thursday when the U.S. Senate banking committee will quiz Janet Yellen, President Barack Obama’s candidate to become the next chair of the central bank.  Yellen has a reputation for being a dove as far as stimulus is concerned and traders will be listening for any hints as to whether she thinks the economy is strong enough to start tapering those purchases that have supported a strong rally on many stock markets.

“ I don’t expect the Fed to do anything different than they have,” said John Stephenson, vice-president and portfolio manager at First Asset Funds Inc.

“The reality is, they’re going to be accommodative. I think that most people think (tapering will start) at the earliest, at the end of the first quarter. I think it could easily be the end of the second quarter or later.”

I personally think that we will not see any tappering until the Debt ceiling issue is behind us in March.  Just remember that markets will fluctuate in the weeks ahead. There is no way to avoid it. Just be prepared to see a bit of volatility and restrain yourself from reacting. That is the most important part of investing successfully.

 

 

 

Terry Broaders

Weekly Update November 5 2013

“Take A Walk On The Wild Side”  -Lou Reed

 

TSX Dips Lower

The Toronto stock market closed lower Friday even as investors took in encouraging manufacturing data from China and the United States. The S&P/TSX composite index declined 23.8 points to 13,337.46, pressured by continued weakness in the gold sector as prices hit a two-week low and Barrick Gold announced a huge stock offering. “Gold is getting crushed, but gold is a flight to safety,” said Wes Mills, chief investment officer Scotia Asset Management PM Advisor Services. “And so, gold coming off the way it is, is a confirmation that the global economy is in fact improving.”

The Canadian dollar was unchanged at 95.9 cents US.  U.S. indexes were higher after the Institute for Supply Management reported the factory sector showed greater than expected expansion during October, rising to 56.4 from 56.2 in September. Economists had expected the index to dip to 50.9. Anything above 50 indicates expansion. The Dow Jones industrials closed up 69.8 points to 15,615.55, the Nasdaq rose 2.34 points to 3,922.04 and the S&P 500 index was up 5.1 points to 1,761.64. Earlier, HSBC Corp. said its monthly purchasing managers’ index for China showed its best improvement in seven months, rising to 50.9 from September’s 50.2. China’s economic growth rebounded to 7.8% in the three months ending in September, from the previous quarter’s two-decade low of 7.5%.

The TSX is coming off its best month of 2013, running ahead 4.5% during October, leaving it up 7.26% year to date.

 

How Was Your Halloween ?

With just over half of Canadians or 54% celebrating Halloween the spooky holiday spending  stayed under control with the average spent for costumes, parties and candy around $70, finds a Scotiabank poll. The top activities Canadians planned for Halloween were handing out candy (21%),  taking kids trick-or-treating (13%), followed by going to a Halloween party for adults (8%).Of those that had planned their costumes for Halloween, the most popular costumes for adults were vampires, witches, fairies and pirates. Canadians aged 35-44 are the most likely to take their kids trick or treating. Women (11%) and younger Canadians aged 18-24 (34%) are more likely to go to a Halloween party. B.C. residents spend the most for Halloween ($82) compared to Atlantic Canadians ($51).  About 15% of Canadians saved in advance for Halloween expenses.

 

 

 

 

 

Market Update as of November 1, 2013
The TSX closed at 13337, down -62 points or -0.46% over the past week. YTD the TSX is up 6.35%.

The DOW closed at 15616, up 46 points or 0.30% over the past week.YTD the DOW is up 19.17%.

The S&P closed at 1762, up 2 points or 0.11% over the past week.YTD the S&P is up 23.56%.

The Nasdaq closed at 3922, down -21 points or -0.53% over the past week.YTD the Nasdaq is up 26.88%.

Gold closed at 1314, down -38.00 points or -2.81% over the past week.YTD gold is down -21.79%.

Oil closed at 94.66, down -3.31 points or -3.38% over the past week.YTD oil is up 2.26%.

The USD/CAD closed at 1.0418, down -0.0032 points or -0.31% over the past week.YTD the USD/CAD is up 5.49%.

 

Sources: Bloomberg, advisor.ca, Scotiabank, Investment Executive