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Anthony Sabti

Fallout from Greece Election Continues

May 18, 2012
Anthony's Weekly Update |

In a week where Facebook’s IPO grabbed all the headlines, markets continued their down slide as the future of the Eurozone continues to weigh on investor’s minds.

 
On Wednesday, Greek president Karolos Papoulias announced that the country will hold new elections after politicians failed to form a coalition government to run the country. The vote is already being considered a referendum on whether the country should remain in the euro zone.

 
The S&P 500 declined for the sixth consecutive session Friday. The Dow has fallen for 12 of the past 13 sessions.  This is the worst 13-session performance for the blue-chip index since October, 1974.

 
The Canadian dollar slid to a four-month low at 97.97 cents (US). The loonie has fallen almost three cents (U.S.) since the beginning of May as traders have avoided risky assets like commodities and resource-based currencies like the loonie in the midst of the Euro zone crisis.

Market Recap (as of May 18, 2012)

The TSX closed at 11281, down -414 points or -3.54% over the past week. YTD the TSX is down -5.64%.

The DOW closed at 12369, down -451.6 points or -3.52% over the past week.YTD the DOW is up 1.24%.

The S&P closed at 1295, down -58 points or -4.29% over the past week.YTD the S&P is up 2.94%.

The Nasdaq closed at 2779, down -155 points or -5.28% over the past week.YTD the Nasdaq is up 6.68%.

Gold closed at 1591, up 5.00 points or 0.32% over the past week.YTD gold is up 1.66%.

Oil closed at 91.16, down -4.69 points or -4.89% over the past week.YTD oil is down -7.83%.

The USD/CAD closed at 0.9797, down -0.0196 points or -1.96% over the past week.YTD the CAD/USD is down -0.01%

Odette Morin
Odette Morin

Tired of renting?

May 16, 2012
Financial Planning |

Want to buy a home with only 5% down? Make sure you love it. We have experienced amazing real estate growth in the past few years. Many think that this trend will be forever continuing. Not so. Real Estate prices are …tightly correlated to interest rates. Watch the real estate prices when interest rate return to a more normal 5%-6%. Real Estate is a long-term investment. Don’t buy thinking to flip it in the short-term. While you may very well be able to do that successfully, you may also be caught in the down part of the cycle. Be smart with one of the biggest purchase of your life.

Here is more on the subject here.

Odette Morin

Markets drop with European Financial Crisis showing its ugly head again

May 16, 2012
The Markets |

Just as the economic backdrop seemed to be improving, the European financial crisis is once again rearing its ugly head. The growing likelihood of a Greek exit from the Euro zone and mounting political uncertainty across Europe weighed on Global financial markets. There is increasing risks that the EU/IMF bailout program will be terminated, potentially precipitating in Greek exit from the euro zone. Results of the French and Greek elections last week suggest disbelief that austerity is the solution to Europe’s fiscal woes.

Interestingly enough, the economic news are not too bad. Last week trade report served up a reminder that Canada’s exposure to Europe is largely indirect. Net trade is likely to contribute positively to real GDP growth. Canada’s trade prospects hinge more on U.S. developments. Most importantly, the Canadian labour market showed vigour through April, with an impressive 58,000 new jobs created.

Until Greece goes to vote on June 17, uncertainty will remain and good economic news may not show on market results.  Be patient and avoid reacting is key.

Visit our blog often and follow us on facebook at the Money Queen, to get up to date information.

Odette Morin

In the market to buy real estate? It’s a buyer’s market.

May 16, 2012
Financial Planning |

“Vancouver’s once-overheated housing market has cooled sharply, with the average price falling nearly 10 per cent in April from a year ago to $735,315, according to figures released Tuesday by the Canadian Real Estate Association. That was the largest drop since the recession and it marked the fourth decline in the past five months.

In a market once famous for being overheated, Mr. Arora said he hasn’t seen a bidding war in months. “It’s totally a buyers’ market. Buyers are determining the price,” he said. “And sellers are surprisingly accepting it. They are taking it.”

One reason for the decline is fewer buyers from Asia, something that had been driving parts of the Vancouver market in recent years, according to agents. “The number of buyers from China is definitely down this year,” said Andrew Hasman, a real estate agent who specializes in high-end homes.” – Globle & Mail May 16.

 

 

 

Odette Morin