Blog

“She Shoots! She Scores! “

TSX Down For The Day Up For The Week

The Toronto stock market gave up a modest gain to close little changed Friday while investors looked to the release of a disappointing read on U.S. home sales last month.The S&P/TSX composite index slipped 4.65 points to 14,205.72 at the end of a positive week for the Toronto market. The Canadian dollar continued to pile up losses for a third day, down 0.28 of a cent to 89.82 cents US as Statistics Canada said that December retail sales tumbled 1.8% from November. Economists had expected a drop of just 0.4%. The agency also reported that the Canadian consumer price index was up 1.5% in January compared with a year earlier. U.S. indexes were lacklustre as the National Association of Realtors said existing house sales dropped 5.1% in January following a 0.8% rise in December.

The Dow Jones industrials fell 29.93 points to 16,103.3, while the Nasdaq lost 4.13 points to 4,263.41 and the S&P 500 index dropped 3.53 points to 1,836.25. Techs were the biggest TSX drag as BlackBerry shed 24 cents or 2.3% to $10.17. The TSX ended the week with a solid gain of 1.07%, reflecting general satisfaction with fourth-quarter earnings reports and positive U.S. manufacturing data on Thursday. The Dow faltered somewhat this week, down 0.3% but strong earnings reports have left the index up 2.57% for the month while the TSX has jumped 3.73% so far in February.

Canadians Don’t Understand CPP, OAS

Canadians appear optimistic about their retirement lifestyle, but few have a firm handle on what their cost of living will be and what their pensions will offer, shows a February 2014 survey by Investors Group. More than two-thirds (69%) of people near retirement are unaware of what the maximum monthly payout is for Canada Pension Plan ($1,038 at age 65) and Old Age Security ($551), yet more than 80% of them say they plan to use these programs as a source of retirement income, and more than 33% anticipate this will be their primary source. Employer pension will be a source of income for 60% of those surveyed, and 37% say it will be their primary income source. However, of those who say they have workplace pensions and plan to rely on it as their primary source of income, 55% didn’t know the monthly benefit they could expect.  Nearly three-quarters (72%) of pre-retirement individuals are confident they’ll be able to maintain their current lifestyle in retirement. This number jumps to 91% among those working with a financial advisor. In addition, 66% of Canadians are less confident in governments’ ability to continue to provide an acceptable level of pension and retirement benefits.

Blog Links

How Much Do Olympic Winners Earn

Are You An Online Shopping Addict

RRSP Last Call Get Paid To Work

Market Update as of February 21 2014

The TSX closed at 14206, up 151 points or 1.07% over the past week. YTD the TSX is up 4.29%.

The DOW closed at 16103, down -51 points or -0.32% over the past week.YTD the DOW is down -2.86%.

The S&P closed at 1836, down -3 points or -0.16% over the past week.YTD the S&P is down -0.65%.

The Nasdaq closed at 4263, up 19 points or 0.45% over the past week.YTD the Nasdaq is up 2.06%.

Gold closed at 1323, up 4.00 points or 0.30% over the past week.YTD gold is up 9.88%.

Oil closed at 102.27, up 9.34 points or 10.05% over the past week.YTD oil is up 3.71%.

The USD/CAD closed at 1.1124, up 0.0136 points or 1.24% over the past week.YTD the USD/CAD is up 4.63%

Sources:  Bloomberg; Investors; adviser.ca; Investment Executive

“They Can Because They Think They Can” -Virgil

Markets Sweet on Valentine’s Day

Rising gold stocks helped push the Toronto stock market higher Friday as traders digested a mixed bag of economic indicators. The S&P/TSX composite index was up 58.15 points to 14,059.8. The Canadian dollar was down 0.01 of a cent at 91.09 cents US as manufacturing shipments declined 0.9% during December. It was the first decline since last August. New York indexes turned mainly higher after the latest reading on U.S. consumer confidence, the University of Michigan’s index, was unchanged at 81.2. A slight drop had been expected. Another report showed that harsh winter weather led to U.S. factory output falling by 0.8% during January. The Dow Jones industrials moved up 63.35 points to 16,090.94, the Nasdaq was 9.56 points lower to 4,231.12 while the S&P 500 index was ahead 3.38 points to 1,833.21. Elsewhere, China’s consumer prices rose 2.5% over a year earlier in January, unchanged from December. Traders found the inflation data encouraging because it leaves the Chinese government room to stimulate the world’s second-biggest economy. Other data showed that economic growth across the eurozone was stronger than expected as gross domestic product grew by 0.3% in the fourth quarter from the previous quarter. That adds up to an annualized rate of about 1.2%. Analysts had been looking for fourth-quarter growth of 0.2%.

RCMP Arrest 7 in Alleged CRA Fraud

The RCMP has arrested seven people as part of alleged fraud that involved Quebec Canada Revenue Agency employees. Charges laid include bribery of public officers, conspiracy, fraud, breach of trust by a public officer and fraud against the government. Five of the accused allegedly received commissions on tax credits that were obtained through fraudulent means. The Mounties say that three of those five were active CRA officials at the time the alleged offences took place. The five are scheduled to appear in court in Montreal on April 7. One of the five, plus two other people have also been charged in a separate component of the investigation and will appear in court on March 19. The investigation, known as Project Coche, began in 2008 and resulted in the arrest of 15 people, including eight former CRA officials. National Revenue Minister Kerry-Lynne Findlay says any misconduct by agency officials is “completely unacceptable.” She adds, “CRA will continue to investigate any allegations of misconduct and continue to cooperate with the RCMP to ensure that the individuals responsible face the full force of the law.”

BLOG LINKS

Federal Budget’s Manin Measures Affecting  Your Financial Financial Plannning

Federal Budget 2014 Highlights

Market Update for February 14 2014

The TSX closed at 14055, up 267 points or 1.94% over the past week. YTD the TSX is up 3.18%.

The DOW closed at 16154, up 360 points or 2.28% over the past week.YTD the DOW is down -2.55%.

The S&P closed at 1839, up 42 points or 2.34% over the past week.YTD the S&P is down -0.49%.

The Nasdaq closed at 4244, up 118 points or 2.86% over the past week.YTD the Nasdaq is up 1.60%.

Gold closed at 1319, up 52.00 points or 4.10% over the past week.YTD gold is up 9.55%.

Oil closed at 92.93, down -7.03 points or -7.03% over the past week.YTD oil is down -5.76%.

The USD/CAD closed at 1.0988, down -0.0052 points or -0.47% over the past week.YTD the USD/CAD is up 3.35%.

Sources: Bloomberg; Investment Executive; advisor.ca.

“In A Time of Universal Deceit Telling The Truth Is A Revolutionary Act” -George Orwell

TSX Rises For The Day, Rises For The Week

Rising gold stocks helped push the Toronto stock market higher Friday on top of three straight days of advances that have left the TSX at its highest level since April 2011. The S&P/TSX composite index was ahead 56.63 points to 13,888.21. The Canadian dollar slid 0.42 of a cent to 91.11 cents US. U.S. indexes were mixed amid U.S. earnings reports from a variety of sectors and economic data showing rising industrial production and declining housing starts. The Dow Jones industrials rose 41.55 points to 16,458.56, the Nasdaq fell 21.11 points to 4,197.58 and the S&P 500 index was off 7.19 points at 1,838.7.Analysts note that the start to the fourth-quarter earnings season this past week has been positive but with the Dow and S&P 500 trading at all-time highs, there are fairly high expectations.The TSX ran ahead 141 points or 1% this past week, with advances paced by the precious and base metal mining sectors. But the Dow industrials ended the week flat amid the mixed earnings news, up just 22 points or 0.13%.

Tax Cheats Beware: CRA Launches Snitch Line

CRA has a new way to catch up with Canadians cheating on their taxes.  The government has launched a tips hotline to catch those hiding money in offshore accounts. On cases worth $100,000 or more, a tipster would get a cut of any money the CRA recovers based on her information. But if she’s convicted as part of the tax scheme herself, she won’t be compensated.  The tipster would also have to wait until the CRA has collected all taxes owed and the case has gone through all avenues of appeal. The government has also recently tightened rules surrounding foreign income reporting. It also wants to make reporting international electronic money transfers of more than $10,000 mandatory. The government will spend $15 million over five years to fund the electronic funds transfer program, and another $15 million during that time on compliance and auditing activity. The government promised a tips hotline in the 2013 budget. With its launch, four of the five tax measures in the budget have been implemented, and the fifth will come into effect in 2015. Closing tax loopholes and catching tax avoiders have been increasingly important to the government as it works to eliminate the deficit in time for the 2015 federal election. The hotline is open at 1-855-345-9042.

Blog Links

Doomsday Scenarios Coming Your Way

Eye Opening Facts About Retirement Funds

RRSPs By The Numbers

Market Update as of January 17, 2014

The TSX closed at 13888, up 140 points or 1.02% over the past week. YTD the TSX is up 1.95%.

The DOW closed at 16459, up 22 points or 0.13% over the past week.YTD the DOW is down -0.71%.

The S&P closed at 1839, down -3 points or -0.16% over the past week.YTD the S&P is down -0.49%.

The Nasdaq closed at 4198, up 23 points or 0.55% over the past week.YTD the Nasdaq is up 0.50%.

Gold closed at 1254, up 8.00 points or 0.64% over the past week.YTD gold is up 4.15%.

Oil closed at 94.3, up 1.50 points or 1.62% over the past week.YTD oil is down -4.37%.

The USD/CAD closed at 1.0965, up 0.0075 points or 0.69% over the past week.YTD the USD/CAD is up 3.13%.

“I Was The Only Guy With Any Bit of Anarchy Left” –Sid Vicious

Lost Jobs But TSX Higher

The Toronto stock market closed up Friday, with strong gains from the gold sector as bullion prices advanced amid disappointing jobs data in both Canada and the United States. The S&P/TSX composite index jumped 118 points to 13,747, as traders contended with a major miss in Canadian jobs creation. The Canadian dollar was down 0.42 of a cent to 91.73 cents US as Statistics Canada reported that the economy shed 45,900 jobs last month instead of the 14,600 jobs economists had expected it to create. Meanwhile, Wall Street was mainly lower after the U.S. Labor Department said there were 74,000 jobs created in December as opposed to the 200,000 that economists had forecast. The Dow Jones industrials declined 7 points to 16,437 as investors weighed the possibility that the Federal Reserve won’t be in any rush to accelerate its program for cutting back on a key stimulus program. The Nasdaq was up 18 points to 4,174 and the S&P 500 index rose 4 points to 1,842. Recent economic data have painted a picture of a U.S. economy that is steadily improving. Exports hit a record level in November, lowering the U.S. trade deficit; businesses have ordered more manufactured goods and auto sales reached a six-year high in 2013. Analysts now estimate that the U.S. economy expanded at a healthy annual rate of three to 3.5% in the October-December quarter, up from earlier forecasts of a rate of 2% or less.

The TSX had a strong week, rising 198 points or 1.47%, paced by gains in the mining sectors, which were the worst TSX performers last year. The Dow ended the week flat.

Most Don’t Have TFSAs

More than half (53%) of Canadians still haven’t opened a TFSA (tax free savings account), and 42% of this group don’t intend to open one this year, according to an ING Direct survey. Fifty-two percent of those who still don’t have a TFSA cite not having money to contribute as the main reason.  Thirty one percent admit they still don’t understand how TFSAs work and 38% are unsure about the current annual contribution limit. Retirement savings continue to be the main reason Canadians use TFSAs (46%). Within the younger (18-34 years) Canadian demographic, almost a third (31%) plan to use their TFSA for purchasing a home. Of the 47% of survey respondents who have opened a TFSA, nearly one in five (19%) are approaching the contribution limit. When looking at how Canadians are contributing, a lump sum deposit one to two times a year is most popular (52%), while 26% contribute to their TFSA on a monthly basis.

Blog Links

Financial Fitness for 2014

Top 5 New Year Financial Resolutions 

CPP Reforms, What’s Your Contribution?

Did You Overindulge During Holidays?

Market Update as of January 10, 2014

The TSX closed at 13748, up 199 points or 1.47% over the past week. YTD the TSX is up 0.92%.

The DOW closed at 16437, down -33 points or -0.20% over the past week.YTD the DOW is down -0.84%.

The S&P closed at 1842, up 11 points or 0.60% over the past week.YTD the S&P is down -0.32%.

The Nasdaq closed at 4175, up 43 points or 1.04% over the past week. YTD the Nasdaq is down -0.05%.

Gold closed at 1246, up 9.00 points or 0.73% over the past week. YTD gold is up 3.49%.

Oil closed at 92.8, down -1.45 points or -1.54% over the past week. YTD oil is down -5.89%.

The USD/CAD closed at 1.089, up 0.0255 points or 2.40% over the past week. YTD the USD/CAD is up 2.43%.

Sources: Bloomberg; Investment Executive; advisor.ca; ING; globeadvisor