“It’s Not Whether You Get Knocked Down, It’s Whether You Get Up” -Vince Lombardi
TSX, Loonie Slightly Down on Dropping Oil, NASDAQ and Nikkei Slide This Week
The S&P/TSX Composite finished the week down slightly this week, ending a 2-week rally. Toronto’s main index finished at 12,763.99, once again hindered by oil prices. Oil finished the week at $31.00, down from last week on renewed skepticism surrounding an OPEC supply-cut deal.
Oil is still up from the 12-year lows it hit last month; however, renewed skepticism surrounding a possible OPEC/Russia/Oman production cut agreement, forecasts for warmer weather, and some lukewarm US economy forecasts both foresaw a further softening in demand while offering no concrete hope for supply-side stabilization. The Loonie finished at 71.86 cents per US Dollar, up slightly for the week. Gold increased for the 5th consecutive week, closing out at $1,174.10 on Friday.
In New York, the NASDAQ limped to the finish line, pummelled by weak economic forecasts and increased worries about over-valuation. The NASDAQ was down 3.25% on Friday, and 5.44% for the week, to 4,363.14. The slide was led by LinkedIn stock sliding as much as 46.5% on Friday, shaving $11 Billion off its market capitalization. The social networking site closed Thursday at $192.28 per share, yet opened Friday at $125.34 on the heels of a revenue forecast that was well below expectations. The slide continued toward finish line at $108.38, down 43.63% for the day. Year-to-date, the NASDAQ has suffered a slide of 12.86%.
The Dow Jones Industrial Average (DJIA) finished the week down 1.59% at 16,204.97. The S&P500 finished the week down 60 points (3.09%) to settle at 1,180.05.
In Asia, Japan’s Nikkei lost all of its gain and then some, finishing at 16,819.59, down almost 12% for the week. The Hang Seng fared only slightly better, also finishing the week in the red.
While all markets are down year-to-date, some stabilization appears to be setting in. As RRSP season ramps up toward the February 29th deadline, it is a great time to invest in RRSPs. Quality funds and equities remain available at steeply discounted prices, and could see a significant return in the years to come. The opportunity for the Canadian investor remains clear and present.
Is That Winter Trip to Florida a Tax Deduction ?
Some folks will try just about anything to save tax. Case in point: “When a patient travels to a warm climate for the beneficial effects on his or her health, can the beneficial effects of the warm climate be considered a medical service” for the purpose of claiming the medical expense credit?
This question was recently put to the Canada Revenue Agency. Here is what CRA had to say. The Canada Revenue Agency’s view is that for the purpose of the Medical Expense Tax Credit, medical services are diagnostic, therapeutic or rehabilitative services that are performed by a medical practitioner acting within the scope of his or her professional training. Payments may be made to a medical practitioner or to a public or licensed private hospital for medical services provided to a patient. In other words, a service must be provided to the patient by a medical service provider. In the CRA’s view, the beneficial effects of a warm climate are not medical services as no service has been provided to the patient. Therefore, travel expenses incurred to travel to a warmer climate to receive those beneficial effects, even if for health reasons, are not eligible medical expenses.
In a word “No”.
This ruling was upheld by the Canada Federal Court of Appeal in Tallon v. The Queen, 2015.
Weekly Market Wrap Up as of February 5 2016
The TSX closed at 12764, down -51 points or -0.40% over the past week. YTD the TSX is down -1.72%.
The DOW closed at 16205, down -261 points or -1.59% over the past week. YTD the DOW is down -7.00%.
The S&P closed at 1880, down -60 points or -3.09% over the past week. YTD the S&P is down -8.02%.
The Nasdaq closed at 4363, down 23 points or -5.44% over the past week. YTD the Nasdaq is down -12.86%.
Gold closed at 1174, up 20.00 points or 5.01% over the past week. YTD gold is up 10.86%.
Oil closed at 30.85, down -2.79 points or -8.29% over the past week. YTD oil is down -16.73%.
The USD/CAD closed at 1.390592, down -0.0091 points or -0.65% over the past week. YTD the USD/CAD is up 0.50%.
The MSCI closed at 1549, up 16 points or 1.04% over the past week. YTD the MSCI is down -6.86%.
The Euro Stoxx 50 closed at 2879, down -166 points or -5.45% over the past week.YTD the Euro Stoxx 50 is down -11.90%.
The FTSE closed at 5848, down -236 points or -3.88% over the past week.YTD the FTSE is down -6.31%.
The CAC closed at 4201, down 80 points or -4.89% over the past week.YTD the CAC is down -9.40%.
DAX closed at 9286, down 33.00 points or -5.23% over the past week.YTD DAX is down -13.56%.
Nikkei closed at 16820, down -698.00 points or -3.98% over the past week.YTD Nikkei is down -11.63%.
The Shanghai closed at 2764, up 26.0000 points or 0.95% over the past week.YTD the Shanghai is down -21.90%.
Sources: Bloomberg; Investment Executive; advisor.ca,; yahoo finance