“Knives, Guns or Fisticuffs; Keep In Mind That I Am Good At All Of Them” – Lorne Campbell
TSX Higher On Price of Oil
The Toronto Stock Exchange rose Friday, pushed higher by burgeoning oil prices amid concerns that global supplies could be at risk if an advance by insurgents in Iraq continues. The S&P/TSX composite index added 91.98 points to 15,001.61–only a few points shy of its record close of 15,073 in June 2008, just before the Great Recession sent stocks plummeting. The Canadian dollar was down 0.01 of a cent to 92.11 cents US. In Iraq, Islamic militants vowed to march on Baghdad after pushing deep into parts of the country’s Sunni heartland northeast of the capital that had been previously controlled by U.S. forces, raising concerns over global oil supplies. The July crude contract advanced 38 cents to US$106.91 a barrel. Meanwhile, gold added 10 cents to US$1,274.10 an ounce, while July copper added a penny to US$3.03 a pound. On Wall Street, U.S. indexes rallied as the Dow Jones industrials rose 41.55 points to 16,775.74, the Nasdaq climbed 13.02 points to 4,310.65 and the S&P 500 saw an uptick of 6.05 points to 1,936.16.
Seniors Say They Know It All When it Comes to Finance
Canadian seniors are more likely than other age groups to give themselves a high mark for overall financial knowledge, shows BMO Financial Group’s third annual financial literacy report. The study showed that 55% of seniors give themselves an “A” or “B” when evaluating their overall knowledge of key financial products, programs and terms. This is 10% higher than the Canadian average. But a recent report issued by the BMO Wealth Institute, Mind Your Taxes in Retirement, shows a significant number of baby boomers (those aged 45+) lack knowledge of key personal finance topics that can impact their income during retirement. The report noted that only a small percentage of boomers know how best to maximize their tax savings, leaving them vulnerable to having benefits and credits such as Old Age Security (OAS) and the Age Amount tax credit clawed back.
For example: 79% either answered incorrectly or did not know how dividend income and capital gains are treated from a tax perspective; 34% either answered incorrectly or did not know how interest income is treated from a tax perspective and 41% did not understand the tax implications of making a RRIF withdrawal.
Market Update as of June 13 2014
The TSX closed at 15002, up 163 points or 1.10% over the past week. YTD the TSX is up 10.13%.
The DOW closed at 16776, down -148 points or -0.87% over the past week. YTD the DOW is up 1.20%.
The S&P closed at 1936, down -13 points or -0.67% over the past week. YTD the S&P is up 4.76%.
The Nasdaq closed at 4311, down -10 points or -0.23% over the past week. YTD the Nasdaq is up 3.21%.
Gold closed at 1277, up 23.00 points or 1.83% over the past week. YTD gold is up 6.06%.
Oil closed at 106.81, up 3.98 points or 3.87% over the past week. YTD oil is up 8.32%.
The USD/CAD closed at 1.085502, down -0.0073 points or -0.67% over the past week. YTD the USD/CAD is up 2.10%.
Sources: Bloomberg; Investment Executive; advisor.ca; BMO