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Category Archives: The Markets

Terry Broaders

Weekly Update May 24 2016

“The Important Thing Is Not What They Think Of Me, But What I Think Of Them” -Queen Victoria

 

TSX Up More Than 100 Points On Friday

North American stock markets rebounded strongly to close the trading week, with the Toronto stock market posting a triple-digit gain in advance of the Victoria Day holiday weekend. The Toronto Stock Exchange’s S&P/TSX composite index soared 102.26 points to close at 13,919.58. The index is on track to rise 1.3% for the week, while it has rebounded more than 20% from an almost three-and-a-half-year low in January.
In New York, markets turned higher after big drops Thursday. The Dow Jones industrial average was up 65.54 points at 17,500.94, the broader S&P 500 composite index advanced 12.28 points to 2,052.32 and the Nasdaq composite rose 57.03 points to 4,769.56. The Canadian dollar posted its fourth consecutive loss, however, down 0.11 of a U.S. cent at 76.20 cents US. The July crude contract lost 26 cents to US$48.41 a barrel. Elsewhere in commodities, June natural gas was up 2.3 cents at US$2.06 per mmBtu, the June gold contract fell $1.90 to US$1,252.90 a troy ounce and July copper was little changed at US$2.06 pound.

 

Canadians Living Longer StatsCan Finds 

Canadians’ life expectancy continues to rise, according to the latest data from Statistics Canada
StatsCan reports that, during the 2010-12 period, life expectancy at birth rose by 0.3 years for males to 79.4 years and by 0.2 years for females, to 83.6 years, compared with the 2009-11 period.
The gap between the life expectancy at birth for males and females is down to its lowest level since the end of the 1970s, StatsCan also notes. Back then, the gender gap was 7.5 years. For the 2010-12 period, it was down to 4.2 years.  The smaller gap “was partly due to a decrease in mortality rates linked to diseases that more frequently affected males in the past,” StatsCan reports. “In addition, women’s adoption of behaviour similar to those of men, such as in the labour market, also contributed to the narrowing of the gap over the previous three decades.”
Life expectancy also continues to rise among those aged 65 in 2010-12. For males that hit age 65 during this period, they could expect to live another 18.7 years, up by 0.1 years from 2009-11; and females could expect to live another 21.7 years, up by 0.2 years compared with the prior period.
By region, life expectancy at birth remains highest in British Columbia, at 80.2 years for males and 84.2 years for females. Conversely, it’s lowest for babies born in Nunavut, where it was just 69.3 years for males and 74.7 years for females.

Canada has one of the highest life expectancies in the world, StatsCan notes. Only Iceland, Israel, Switzerland and Australia have higher life expectancies for males, at 81 years each. For females, Japan (87 years), Spain (86 years), Australia, France, Italy, South Korea and Switzerland (85 years each) have a higher life expectancy..

 

Weekly Market Wrap Up as of May 20 2016

North America
The TSX closed at 13920, up 171 points or 1.24% over the past week. YTD the TSX is up 7.18%.
The DOW closed at 17501, down -34 points or -0.19% over the past week. YTD the DOW is up 0.44%.
The S&P closed at 2052, up 5 points or 0.24% over the past week. YTD the S&P is up 0.39%.
The Nasdaq closed at 4770, up 52 points or 1.10% over the past week. YTD the Nasdaq is down -4.73%.
Gold closed at 1253, down -14.00 points or -1.73% over the past week. YTD gold is up 18.32%.
Oil closed at 48.46, up 2.27 points or 4.91% over the past week. YTD oil is up 30.80%.
The USD/CAD closed at 1.312101, up 0.0179 points or 1.38% over the past week. YTD the USD/CAD is down -5.17%.

 

Europe/Asia
The MSCI closed at 1628, down -22 points or -1.33% over the past week. YTD the MSCI is down -2.10%.
The Euro Stoxx 50 closed at 2962, up 5 points or 0.17% over the past week. YTD the Euro Stoxx 50 is down -9.36%.
The FTSE closed at 6156, up 17 points or 0.28% over the past week. YTD the FTSE is down -1.38%.
The CAC closed at 4354, up 34 points or 0.79% over the past week. YTD the CAC is down -6.10%.
DAX closed at 9916, down -37.00 points or -0.37% over the past week. YTD DAX is down -7.70%.
Nikkei closed at 16736, up 324.00 points or 1.97% over the past week. YTD Nikkei is down -12.07%.
The Shanghai closed at 2826, down -1.0000 points or -0.04% over the past week. YTD the Shanghai is down -20.15%.

 

Sources: Bloomberg; Investment Executive;  advisor.ca,

Odette Morin

How did the latest “Sell everything” strategy work out?

In my 28 year career in the investment industry, I had to reassure clients time and time again. Investors get really concerned when they hear Doom & Gloom predictions from well meaning friends or the media.
Time and time again I have to remind them to disregard market fluctuations. Good quality investments in a well balanced portfolio always recover. It is safer to stay the course.
Here is a fantastic article about would have happened if you would have followed the latest sell everything strategy that did its rounds earlier this year.
Terry Broaders

Weekly Update April 25 2016

“Compassion is an action word with no boundaries.” – Prince

 

We are busy doing your taxes.  Our weekly commentary will come back to you on May 6, 2016.  Here are this week’s market numbers.

Weekly Market Wrap Up as of April 22, 2016

North America
The TSX closed at 13874, up 237 points or 1.74% over the past week. YTD the TSX is up 6.82%.
The DOW closed at 18004, up 106 points or 0.59% over the past week. YTD the DOW is up 3.32%.
The S&P closed at 2092, up 11 points or 0.53% over the past week. YTD the S&P is up 2.35%.
The Nasdaq closed at 4906, down -32 points or -0.65% over the past week. YTD the Nasdaq is down -2.02%.
Gold closed at 1234, down -6.00 points or -0.16% over the past week. YTD gold is up 16.53%.
Oil closed at 43.75, up 3.35 points or 8.29% over the past week. YTD oil is up 18.08%.
The USD/CAD closed at 1.26705, down -0.0152 points or -1.19% over the past week. YTD the USD/CAD is down -8.43%.

Europe/Asia
The MSCI closed at 1691, up 19 points or 1.14% over the past week. YTD the MSCI is up 1.68%.
The Euro Stoxx 50 closed at 3141, up 87 points or 2.85% over the past week. YTD the Euro Stoxx 50 is down -3.89%.
The FTSE closed at 6310, down -34 points or -0.54% over the past week. YTD the FTSE is up 1.09%.
The CAC closed at 4570, up 75 points or 1.67% over the past week. YTD the CAC is down -1.44%.
DAX closed at 10374, up 322.00 points or 3.20% over the past week. YTD DAX is down -3.43%.
Nikkei closed at 17573, up 725.00 points or 4.30% over the past week. YTD Nikkei is down -7.68%.
The Shanghai closed at 2959, down -119.0000 points or -3.87% over the past week. YTD the Shanghai is down -16.39%.

 

Odette Morin
Terry Broaders

Weekly Update April 18 2016

“The Difference Between Death & Taxes Is Death Doesn’t Get Worse” – Will Rogers

 

North American Markets Close in the Red on Friday
North American markets closed slightly lower Friday in anticipation of the weekend’s meeting of OPEC countries that could culminate in an oil production freeze.  The Toronto Stock Exchange’s S&P/TSX composite index was down 31.09 points at 13,637.20. New York indexes were also in the red as the dip in oil prices dragged down energy companies. The Dow Jones industrial average slipped down 28.97 points to 17,897.46. The broader S&P 500 lost 2.05 points at 2,080.73 with energy stocks being the worst performer by far. The Nasdaq composite dipped by 7.67 points at 4,938.22.  The lacklustre closing figures reflect that little  noteworthy economic data was being released Friday.
Instead, the markets were waiting to react to news from Sunday’s meeting of some members of the Organization of the Petroleum Exporting Countries in Doha, Qatar. “Obviously all eyes are on the OPEC meeting this weekend and so there’s some caution,” Carlin said. Reports and rumours earlier in the week that a production freeze was imminent have been dying out, said Carlin, adding that the market views this as a potential risk, which pushed down oil prices slightly ahead of the gathering. The May contract for benchmark North America crude closed down $1.14 at US$40.36 a barrel on Friday, adding to losses of the two previous sessions after the commodity closed above US$42 on Tuesday for the first time since late November. This commodity-sensitive Canadian dollar turned slightly higher after two days of loses. It edged up 0.07 of a U.S. cent to 77.90 cents US. Earlier in the week, the loonie hit a nine-month high, reaching 78.38 cents US on Tuesday after a reported deal between Russia and Saudi Arabia to cut oil production sent energy prices higher.

 

Consumer Spending Up In First Quarter

Consumer spending in Canada grew by 6.24% in the first quarter of 2016 on a year-over-year basis, according to a report by Moneris Solutions Corporation. Following a flat period in 2014, Moneris has recorded six consecutive quarters of positive spending increases. All four quarters of 2015 saw growth of between 5% and 7%. Moneris’ findings this quarter are consistent with positive economic indicators released by Statistics Canada showing GDP growth in January along with an uptick in retail sales and employment increases in March.
Consumer spending rose by 5.89% in January, 9.03% in February and 4.42% in March, compared to the first three months of 2015. All provinces posted year-over-year increases during the quarter, with the exception of Alberta. Nova Scotia posted the largest increase (11.65%) followed by New Brunswick (10.40%).
The oil-producing provinces posted growth below the national average; spending in Alberta declined by 2.99% and Saskatchewan saw an increase of 1.08%.
Credit card spending increased by 8.36% over the first quarter of 2015, holding a 64.66% share of purchases made. Debit sales rose by 2.57%, representing a 35.34% share of total card spending.

 

Weekly Market Wrap Up as of March 18 2016

North America
The TSX closed at 13637, up 240 points or 1.79% over the past week. YTD the TSX is up 5.00%.
The DOW closed at 17898, up 321 points or 1.83% over the past week. YTD the DOW is up 2.71%.
The S&P closed at 2081, up 33 points or 1.61% over the past week. YTD the S&P is up 1.81%.
The Nasdaq closed at 4938, up 87 points or 1.79% over the past week. YTD the Nasdaq is down -1.38%.
Gold closed at 1236, down 5.00 points or -0.48% over the past week. YTD gold is up 16.71%.
Oil closed at 40.4, up 0.88 points or 2.23% over the past week. YTD oil is up 9.04%.
The USD/CAD closed at 1.282258, down -0.0178 points or -1.37% over the past week. YTD the USD/CAD is down -7.33%.

Europe/Asia
The MSCI closed at 1672, up 50 points or 3.08% over the past week. YTD the MSCI is up 0.54%.
The Euro Stoxx 50 closed at 3054, up 142 points or 4.88% over the past week. YTD the Euro Stoxx 50 is down -6.55%.
The FTSE closed at 6344, up 140 points or 2.26% over the past week. YTD the FTSE is up 1.63%.
The CAC closed at 4495, up 192 points or 4.46% over the past week. YTD the CAC is down -3.06%.
DAX closed at 10052, up 430.00 points or 4.47% over the past week. YTD DAX is down -6.43%.
Nikkei closed at 16848, up 1026.00 points or 6.48% over the past week. YTD Nikkei is down -11.48%.
The Shanghai closed at 3078, up 93.0000 points or 3.12% over the past week. YTD the Shanghai is down -13.03%.

 

Sources: Bloomberg; Investment Executive;  advisor.ca,

Frank Mueller

Weekly Update – April 8, 2016

TSX REBOUNDS FRIDAY ON STRONG JOBS NUMBERS, OIL SURGE

The S&P/TSX Composite closed the week at 13,396.73, down 0.3% for the week. At a 2.9% gain year-to-date, Toronto’s main index continues to trail only New Zealand’s index – the world’s best 2016 performer.

While down much of the week, a Friday surge, spurred by encouraging jobs numbers and a 6.6% jump in oil, helped the TSX to cut its losses for the week.

Strong Canadian jobs numbers for March posted a stronger-than-expected increase. A potential knock-on effect of this news could be felt on April 13th, if the Bank of Canada decides not to cut rates again. Before the jobs numbers were released, there was speculation of a rate cut happening again with hopes of further economy stimulation.

Oil enjoyed a healthy jump to finish the week, as data from the Energy Information Administration showed a decreasing U.S. production for the 10th time in 11 weeks, as well as decreased crude stockpiles. West Texas Intermediate May futures closed at $39.72USD per barrel, almost a 50% increase from the February lows, while Brent June futures closed at $41.92USD per barrel. A meeting of oil-producing countries, scheduled for April 17th in Doha, is highly anticipated, as an agreement to freeze output would buoy oil’s price further. John Kilduff, partner at New York energy-focused Hedge Fund Again Capital LLC, stated “We’re still hemmed in a range below $40. Breaking through would be very bullish for the market”.

However, many analysts aren’t believers in an extended oil rally, citing Iran’s goal of winning market share, as well as the world total supply surplus as the main reasons not to believe the hype. Without Iran being on board with a supply cut, other producers cutting supply would only lead to a loss in market share to Iran.

 

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SOURCES: Globe Investor