Monthly Archives: August 2016

Terry Broaders

Weekly Update August 30 2016

“If You Can’t Explain It To a 6 Year Old, You Don’t Understand It Yourself” -Albert Einstein


TSX Rises Friday After Yellen Speech

Canada’s main stock index rose on Friday, led by energy and mining stocks as oil and gold prices gained after a speech by Federal Reserve Chair Janet Yellen viewed as supportive of a U.S. interest rate increase.   Yellen said the U.S. economy has been helped by a solid job market, but stopped short of signalling any timetable for the next increase in the Fed’s key interest rates.  The case for raising U.S. interest rates has strengthened in recent months because of improvements in the U.S. labor market and expectations for moderate economic growth, Yellen said. The materials group, which includes precious and base metals, miners and fertilizer companies, added 2.2 percent, while energy stocks advanced 1.2 percent as a lower U.S. dollar also helped support energy prices. U.S. crude prices were up 1.7 percent to $48.11 a barrel.
Toronto’s S&P/TSX composite index gained 9.16 points at 14,639.88 with nine of the index’s 10 main groups higher.  Industrials rose 1.2 percent, including gains for railroad stocks, while financials firmed 0.4 percent. In New York, the Dow Jones industrial average fell 53.01 points at 18,395.40 and the broader S&P 500 composite index dropped 3.43 points to 2,169.04, while the Nasdaq composite increased by 6.72 points to 5,218.92.  The Canadian dollar, meanwhile, was down 0.44 of a cent at 76.92 cents US.


How Much Tax Did Your Family Pay Last Year?

The Fraser Institute calculates that the average Canadian family paid $34,154 in taxes of all sort last year, including “hidden” business taxes that are passed along in the price of goods and services purchased. The Vancouver-based think-tank estimates that the average bill for income taxes collected by governments was $10,616 in 2015. The second-biggest category was payroll and health taxes, at $7,160, followed by sales taxes at $4,973 and property taxes at $3,832. The other categories include taxes on profits, liquor or tobacco, fuel, natural resources and import duties — totalling $7,573.
The study’s authors conclude that visible and hidden taxes would have been equal to 42.4% of the cash income for an average Canadian family in 2015, estimated at $80,593. By comparison, the study estimates the average Canadian family spent $30,293 on housing, food and clothing last year — about 37.6% of the family’s total cash income.


Sources: Bloomberg; Investment Executive;,

Terry Broaders

Weekly Update August 23 2016

“When You Talk, You Only Repeat What You Already Know. But If You Listen You May Learn Something” -Dalai Lama XIV


Stocks Close Lower on Friday

U.S. and Canadian stocks closed lower Friday, led by declines in utility shares as investors weighed prospects for an interest rate increase in the coming months. The S&P utility index, which tends to fall as prospects for a rate increase rise, was down 1.3 per cent. The Dow Jones industrial average was down 45.13 points, or 0.24 per cent, to 18,552.57, the S&P 500 lost 3.15 points, or 0.14 per cent, to 2,183.87 and the Nasdaq Composite dropped 1.77 points, or 0.03 per cent, to 5,238.38. The benchmark S&P 500 index is up about 7 per cent this year. Its recent run to record highs has been partly supported by expectations that the Fed will continue to keep rates low, as well as some upbeat earnings and economic news. The S&P/TSX Composite Index closed down 8.22 points, or 0.06 per cent, to 14,687.46 in Toronto, after briefly erasing an earlier decline of as much as 0.4 per cent.  The Canadian dollar fell 0.54 of a cent to 77.72 cents (U.S.).
Raw-materials producers have led the rally in Canadian equities in 2016, surging 59 per cent as the top gainers among 10 industries in the S&P/TSX.  Energy producers have gained 22 per cent in the same period. That’s boosted the Canadian equity benchmark to a 13 per cent jump in 2016, rebounding from a slump last year that was the worst for the S&P/TSX since the 2008 financial crisis.


Win The Lottery! Good Luck or Bad?

In 10 years, Dan Carley went from total financial freedom to the four walls of a jail cell. Mr. Carley, a 35-year-old father from southern Ontario, won a $5-million jackpot in February 2006. This month, he was sentenced to 2 1/2 years for cocaine trafficking. He spent half his winnings on poor investments and a failed business venture in his first year as a millionaire. Carley also developed a drug addiction and estimates that “more than one-fifth of his prize cash” went to drugs over the years. Within seven months of hitting the jackpot, Carley said he’d sunk about $1.5 million into a “badly thought-out” plan to develop a string of Niagara bars that fizzled by 2007.

He spent a further million on poor investments in the first year, and by 2009 his bank accounts were gutted, evaporating after heady splurges on drugs and alcohol and, more sobering, mortgage payments and back taxes. “I take full responsibility. I’m not blaming anybody else, “says Carley.  “I was uneducated, young. I didn’t even have a high school diploma at the time.”  Now he’s been clean for nearly two years, and said he’s at peace with his troubled past. “I’m a lot happier now than when I had the money. . . . It was just partying and misery.”  He recently attained his high school equivalency certificate, and he said he hopes to enroll in a college social-work program after his release. “I’m actually very content,” he said. “The past I’m not really concerned with.”.


Sources: Bloomberg; Investment Executive;,

Terry Broaders

Weekly Update August 16 2016

“What We Think, We Become” – Buddha


Oil Continues Advance Friday But Markets Mixed

The week ended with a flurry of data from some major economies with some negative impact on equities.  Despite oil prices rising by more than 2 per cent – the second day of strong gains – the main TSX index closed lower, tracking losses for Wall Street.  In New York, 2 of the main indexes slipped having closed at record highs in the previous session as weak data on retail and producer prices weighed. The Nasdaq closed slightly higher.  Asian markets closed mostly higher earlier in the day despite weak data from China. European markets closed mixed as GDP data showed disparity for the Eurozone bloc; Germany beat expectations, Italy failed to grow and the aggregate for the bloc was roughly in line with forecasts. The S&P/TSX composite index lost 48.61 points to 14,747.45.  The Canadian dollar was at 77.15 cents US, up 0.11 of a cent from Thursday’s close.  South of the border, the Dow Jones industrial average fell by 37.05 points at 18,576.47, the broader S&P 500 composite index slipped 1.74 points to 2,184.05, and the Nasdaq composite added 4.49 points to 5,232.89. Gold finished at $1,340.90 an ounce.


Hillary Clinton’s Tax Return

Do you want to see Hillary Clinton’s Personal Tax Return for 2015?  Here it is; right here.

Hillary and Bill submit their tax returns as “married filing jointly“ which is a U.S. option of filing. The total income figure is $10,745,378   The income is mostly generated from Hillary’s speaking, writing and consulting income of $4,147,325 and Bill’s income of $6,020,947 from the same activities. The balance of their earnings is from various investment income and pensions. Their total tax paid was $3,624,455 or 33% of income.  The number of charitable donations was $1,042,000 or 10% of income.
The 2015 figures are a bit of a step down from 2014 where they made $28,336,212 and paid taxes of $9,981,350.


Sources: Bloomberg; Investment Executive;,

Terry Broaders

Weekly Update August 9 2016

“Insults Are The Arguments Employed By Those Who Are In The Wrong ” – Jean Jacques Rousseau


Two Stock Market Indices Post Record Highs

Two North American stock indices reached record highs Friday, boosted by a strong job report out of the U.S. The S&P 500 composite index advanced 18.62 to 2,182.87 from a previous record reached last month. Meanwhile, the Nasdaq composite rose 54.87 to 5,221.12 from its previous high of 5,218.86 on July 20, 2015.  The Dow Jones industrial average rose 191.48 points to 18,543.53.
In Canada the S&P/TSX composite index gained 119.99 points to 14,648.77, while Canada’s dollar plunged more than a cent at one point Friday before finishing at 75.96 cents US – a drop of .83 of a U.S. cent from Thursday’s close.  In commodities, the September crude contract fell 13 cents to US$41.80 per barrel, while gold lost $23.00 to US$1,344.40.  September natural gas was down 6.2 cents at US$2.77 per mmBTU and September copper contracts fell two cents to US$2.154 a pound.


Canada’s Economy Sheds 31,200 Jobs, U.S. Adds 255,000 Jobs

Canada’s employment market fell in July, unexpectedly losing tens of thousands of jobs — most on them full-time positions, with Ontario taking the brunt of the declines — and pushing the jobless rate higher. Data from Statistics Canada on Friday showed a net loss of 31,200 workers — enough to push the unemployment rate to 6.9 per cent, up from 6.8 per cent the previous month.  Full-time employment fell by a net 71,400 in July, while part-time positions saw a gain of 40,200, the federal agency said. The public sector shed 42,000 jobs, with only 13,600 more people working in the private sector. Ontario lost 36,000 positions in July, marking the first significant decline in the country’s largest province since September 2015, although the jobless rate was unchanged at 6.4 per cent.
Meanwhile U.S. employers added a healthy 255,000 jobs in July, a sign of confidence amid sluggish economic growth that points to a resilient economy.  July’s robust job gain may be enough to reassure investors _ and perhaps Federal Reserve policymakers _ that the economy will pick up. Its growth has been weak since last fall. The economy has been driven by consumers, who ramped up spending in the April-June quarter at the second-fastest pace since the recession.  Many analysts expect the economy to rebound in the second half of the year, with one of the most optimistic estimates coming from the Federal Reserve Bank of Atlanta: It predicts that annualized growth will reach 3.7% in the current July-September quarter.


Sources: Bloomberg; Investment Executive;,