Monthly Archives: December 2016

Terry Broaders

Weekly Update December 20 2016

“The Nice Thing About Christmas Is That You Can Make People Forget The Past With A Present” – Anonymous

TSX Rises Wall Street Falls Following Fed Rate Hike

Canada’s benchmark stock index rose on Friday as higher oil prices helped heavyweight energy stocks and gold miners recovered as the price of the precious metal steadied. The Toronto Stock Exchange’s S&P/TSX composite index closed up 33.89 points, or 0.22 per cent, at 15,252.20.  The Canadian dollar closed slipped to trade at 74.88 cents (U.S.).
On Wall Street, U.S. stocks fell on Friday, weighed by a more than 4-per-cent drop in Oracle shares, while recently-battered stocks in the real estate and utilities sectors posted the largest gains. The Dow Jones industrial average fell 8.32 points, or 0.04 per cent, to 19,843.92, unable to move above the 19,900 level. The S&P 500 lost 3.97 points, or 0.18 per cent, to 2,258.06 and the Nasdaq Composite dropped 19.69 points, or 0.36 per cent, to 5,437.16. The dollar and U.S. stocks dipped on Friday, taking a breather after this week’s big moves after the U.S. Federal Reserve signalled a faster pace of U.S. interest rate increases next year. World stocks as measured by the MSCI world equity index, which tracks shares in 46 countries, were up slightly. Oil prices jumped as producers showed signs of adhering to a global deal to reduce output. Brent crude futures were trading at $55.20 per barrel, up 2.2 per cent, while U.S. crude was up 1.8 per cent at $51.83.


Working With A Financial Planner Is Key To Retirement Satisfaction, Study Finds

The vast majority of retired Canadians who have worked with a financial planner for at least a decade are confident they have enough funds to sustain them through retirement, according to a new study from Credential Financial Inc. and Insights West, both based in Vancouver. The report, Canadians on Retirement, finds that 53% of retired Canadians have worked with a financial planner and 77% of individuals within this group are happy with the level of funding they have for their retirement years. In addition, approximately two-thirds (65%) of those who have had the guidance of a financial planner say their retirement is “everything they thought it would be.”
However, there are still a significant percentage (30%) of working Canadians who have not yet set aside any money for retirement, according to the report. “Data further shows this lack of preparation may stem from a belief that working Canadians believe they have longer to plan for retirement than they actually do. Sixty-two per cent of Canadian retirees say they retired earlier than expected,” the report states. In fact, 18% of Canadians are actually working in their retirement years so that they can continue to earn an income and 30% of those in retirement have more debt than they had anticipated.

Sources: Bloomberg; Investment Executive;

Terry Broaders

Weekly Update December 13 2016

“Bad Weather Always Looks Worse Through a Window” – Unknown

Markets Continue To Rally

The S&P 500 extended its rally to the longest since June, 2014, as benchmark indexes added to all-time highs.  Oil powered above $51 (U.S.) a barrel on signs producers are following through with agreed production cuts. The post-election rally in American equities plowed ahead even as the Federal Reserve looks certain to raise interest rates next week. Speculation that Donald Trump’s policies will boost the economy enough to withstand the effects of higher interest rates lifted consumer confidence to the most in almost two years. At the same time, the European Central Bank’s pledge to expand its limits on asset purchases to include shorter-dated securities is expected to drive down borrowing costs for banks.  The Dow Jones industrial average rose 141.83 points, or 0.72 per cent, to 19,756.64, concluding a weekly gain of 3 per cent. The S&P 500 gained 13.34 points, or 0.59 percent, to 2,259.53, to cap a 3-per-cent rally in the week. The gauge closed at a record and is up 5.3 per cent since the Nov. 8 election. The Nasdaq Composite added 27.14 points, or 0.5 percent, to 5,444.50.
In Canada, the Toronto Stock Exchange’s S&P/TSX composite index extended a 19-month high as it rose 17.00 points, or 0.11 percent, to 15,312.20, notching a 1.7-per-cent gain on the week. It touched its highest intraday since May, 2015 at 15,339.04. Healthcare stocks gained 1.6 per cent while consumer staples add 0.7 per cent and utilities were up 0.5 per cent. Materials stocks fell 2.5 per cent.  The Canadian dollar was trading at 75.82 cents (U.S.), up 0.08.


Viola Desmond First Canadian Woman On A Banknote

Viola Desmond, often described as Canada’s Rosa Parks for her 1946 decision to sit in a whites-only section of a Nova Scotia movie theatre, will be the first woman to be celebrated on the face of a Canadian banknote. Finance Minister Bill Morneau says Desmond will grace the front of the $10 bill when the next series goes into circulation in 2018.

The Bank of Canada’s independent advisory council said it was looking for nominees who overcame barriers, inspired others or left a lasting legacy.  By every measure, Desmond fits that bill.  A businesswoman turned civil libertarian, Desmond built a business as a beautician and, through her beauty school, was a mentor to young black women in Nova Scotia. It was in 1946 when she rejected racial discrimination by sitting in a whites-only section of a New Glasgow movie theatre. She was arrested and fined; her actions inspired later generations of black people in Nova Scotia and the rest of Canada.

The bank’s advisory council received more than 18,000 submissions during a public call for nominations earlier this year. It’s the first time a woman other than the Queen has been on the face of a Canadian banknote.


Sources: Bloomberg; Investment Executive;