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Category Archives: Weekly Update

Frank Mueller

Weekly Update – April 6, 2018

“Isn’t it appropriate that the month of the tax begins with April Fool’s Day and ends with cries of May Day!” – Robert Knauerhase

Throughout the month of April until the end of tax season, our weekly update will consist solely of the market numbers. Remember that if you have any questions or concerns about your portfolio or the state of markets in general, we are simply a phone call or email away.

Weekly Market Wrap-Up

North America

  • The TSX closed at 15207, down -160 points or -1.04% over the past week. YTD the TSX is down -6.18%.
  • The DOW closed at 23933, down -170 points or -0.71% over the past week. YTD the DOW is down -3.18%.
  • The S&P closed at 2605, down -36 points or -1.36% over the past week. YTD the S&P is down -2.58%.
  • The Nasdaq closed at 6915, down -149 points or -2.11% over the past week. YTD the Nasdaq is up 0.17%.
  • Gold closed at 1337, up -23.00 points or 0.91% over the past week. YTD gold is up 2.06%.
  • Oil closed at 61.95, down -2.99 points or -4.60% over the past week. YTD oil is up 2.53%.
  • The USD/CAD closed at 0.7826, up 0.0071 points or 0.92% over the past week. YTD the USD/CAD is down -1.60%.

Europe/Asia

  • The MSCI closed at 2081, up 14 points or 0.68% over the past week. YTD the MSCI is down -1.05%.
  • The Euro Stoxx 50 closed at 3408, up 46 points or 1.37% over the past week. YTD the Euro Stoxx 50 is down -2.74%.
  • The FTSE closed at 7184, up 127 points or 1.80% over the past week. YTD the FTSE is down -6.56%.
  • The CAC closed at 5258, up 91 points or 1.76% over the past week. YTD the CAC is down -1.04%.
  • DAX closed at 12241, up 144.00 points or 1.19% over the past week. YTD DAX is down -5.24%.
  • Nikkei closed at 21568, up 114.00 points or 0.53% over the past week. YTD Nikkei is down -5.26%.
  • The Shanghai closed at 3131, down -38.0000 points or -1.20% over the past week. YTD the Shanghai is down -5.32%.

Fixed Income

  • The 10-Yr Bond Yield closed at 2.78, up 0.0400 points or 1.46% over the past week. YTD the 10-Yr Bond is up 15.83%.

Sources: Dynamic Funds

Frank Mueller

Weekly Update – March 29, 2018

“Markets love volatility” – Christine Lagarde

Last week, we advised that the weekly brief will only consist of market numbers until the completion of tax season on April 30th. However, we wanted to provide some perspective on the recent market pullback.

Bloomberg has written a great article on the recent volatility. Throughout the current nine-year U.S. bull market, there have been five other corrections like this one. On average, equities fell 14 per cent and took seven months to recover. It has been 60 days since the January 26th peak for the S&P 500; therefore, this current correction could last until August (if other recent selloffs are any indication).

While the message we’re trying to impart is that volatility is quite normal, we understand that it may be concerning in the short term. The above data is simply a reminder that even in an upward market there are prolonged periods of negative returns.

If you have any questions about markets or your portfolio, please feel free to contact us.

On behalf of the You First team, we wish you a Happy Easter long weekend.

Frank Mueller

Weekly Update – March 23, 2018

“Globalization and free trade do spur economic growth, and they lead to lower prices on many goods” – Robert Reich

Please note that starting next week until the end of April, our weekly update will simply consist of the weekly and year-to-date market numbers.

Stock Markets Drop on Tariff Worries

Sabre-rattling between the United States and China intensified this week, with President Trump signing a presidential memorandum with aim to impose $60 Billion of import tariffs on Chinese goods; the Chinese retaliated with a $3 Billion tariff threat on American goods.

It should be noted that prior to officially enacting the tariffs on China, there is a 30-day consultation period on the memorandum, so there is certainly no guarantee that the tariffs will come to pass.

What does this mean for your portfolio? Well, following a relatively smooth and calm 2017, 2018 has brought us the “return of market volatility”, with more ups and downs in the market. This increased volatility provides long-term-focused investors with buying opportunities when markets do dip, such as right now.

Feel free to contact us with questions, or if you’d like to make a contribution!

Parents with Children at Daycare: Check for Fee Reductions Starting April

In its February budget, the provincial government announced various affordable childcare initiatives.

The measure that made most headlines is the affordable childcare benefit, an income-based subsidy making childcare free for families with income below $45,000. This will take effect starting September 2018.

What was not as heavily mentioned was a non-income-based fee reduction under the new Child Care Operating Funding (CCOF) program. The program is optional – childcare providers can choose to or not to participate.

For childcare providers that have opted into the CCOF program, the fee reductions will start as early as April 1st, and are as follows:

  • $350/month for group infant/toddler care
  • $200/month for family infant/toddler care
  • $100/month for group care for children aged 3-5
  • $60/month for family care for children aged 3-5

If you have an infant or toddler or a child aged 3 to 5 in licensed group or family care, check to see if your provider is planning to participate in the fee reduction initiative.

More information can be found here.

Weekly Market Wrap-Up

North America

  • The TSX closed at 15224, down -487 points or -3.10% over the past week. YTD the TSX is down -6.08%.
  • The DOW closed at 23533, down -1414 points or -5.67% over the past week. YTD the DOW is down -4.80%.
  • The S&P closed at 2588, down -164 points or -5.96% over the past week. YTD the S&P is down -3.22%.
  • The NASDAQ closed at 6993, down -489 points or -6.54% over the past week. YTD the Nasdaq is up 1.30%.
  • Gold closed at 1348, up -9.00 points or 2.51% over the past week. YTD gold is up 2.90%.
  • Oil closed at 65.81, up 3.47 points or 5.57% over the past week. YTD oil is up 8.92%.
  • The USD/CAD closed at 0.7755, up 0.0118 points or 1.55% over the past week. YTD the USD/CAD is down -2.49%.

Europe/Asia

  • The MSCI closed at 2073, down -61 points or -2.86% over the past week. YTD the MSCI is down -1.43%.
  • The Euro Stoxx 50 closed at 3304, down -133 points or -3.87% over the past week. YTD the Euro Stoxx 50 is down -5.71%.
  • The FTSE closed at 6922, down -242 points or -3.38% over the past week. YTD the FTSE is down -9.96%.
  • The CAC closed at 5095, down -188 points or -3.56% over the past week. YTD the CAC is down -4.10%.
  • DAX closed at 11886, down -504.00 points or -4.07% over the past week. YTD DAX is down -7.99%.
  • Nikkei closed at 20618, down -1059.00 points or -4.89% over the past week. YTD Nikkei is down -9.43%.
  • The Shanghai closed at 3153, down -117.0000 points or -3.58% over the past week. YTD the Shanghai is down -4.66%.

Fixed Income

  • The 10-Yr Bond Yield closed at 2.83, down -0.0200 points or -0.70% over the past week. YTD the 10-Yr Bond is up 17.92%.

Sources: Globe Advisor, Dynamic Funds

Frank Mueller

Weekly Update – March 16, 2018

“The art of taxation consists in so plucking the goose as to obtain the largest amount of feathers with the least amount of hissing” – Jean-Baptiste Colbert

Continued Political Turmoil in the White House – and Abroad – Tempers Markets

President Trump’s softening tariff stances – offering exemptions for Canada and Mexico – have led the European Union and Japan to seek exemptions as well.

Trump also tapped Larry Kudlow, a so-called “perfect embodiment of Republican economic”, to replace Gary Cohn as Economic Advisor to the President. Kudlow, a free trade advocate, may push Trump to further back off his protectionist stance of increased tariffs. U.S. Markets reacted favourably to this news; however, as Robert Phipps, Director at Per Stirling Capital Management opined: “it’s not enough of an offset to protect the companies that are susceptible to retaliation in a trade war.”

Trump also fired Rex Tillerson from his post as Secretary of State on Tuesday; markets weighed on the news. Tillerson and Trump had some public rifts over North Korean, Russian and Iranian policy options. Trump loyalist Mike Pompeo, Director of the CIA, was tapped to replace Tillerson as Secretary of State.

On Wednesday, Trump threatened to impose heavy tariffs on Chinese goods – specifically, targeting Chinese tech, electronics and telecoms – world markets reacted negatively almost across the board.

Overseas, a chemical attack on a former Russian double agent and his daughter, using an exclusively Russian nerve agent, resulted in British PM Theresa May expelling 23 Russian diplomats from British soil. She also vowed to crack down on corrupt Russians & their money entering the UK, and lastly, May also cut off high-level talks between the two nations. The Russian Foreign Ministry threatened to retaliate.

Lastly, U.S. Special Counsel Robert Mueller issued a subpoena for documents relating to President Trump’s businesses, further weighing on markets.

Markets rebounded on Friday to close out the rocky week. Investors also began looking ahead to next week, when the Federal Reserve is expected to raise benchmark U.S. interest rates. Rate-sensitive sectors, such as utilities and real estate, rose on Friday, but they could perform poorly if rates increase sharply.

Sources: Globe Advisor

Frank Mueller

Weekly Update – March 9, 2018

“As history has repeatedly proven, one trade tariff begets another, then another – until you’ve got a full-blown trade war. No one ever wins, and consumers always get screwed” – Mark McKinnon

Bank of Canada Holds Key Rate Steady

Citing “growing trade uncertainty”, the Bank of Canada announced they would hold rates steady on Wednesday. President Trump had threatened to impose trade tariffs on key trade partners, including Canada. However, he later eased off these threats.

The S&P/TSX Composite moved upward as the week went on, rising with oil & precious metals gains, as well as President Trump’s softening stance on trade tariffs.

The TSX finished up on the day, and up 1.25 per cent for the week; however, Canada’s main index is still down nearly four per cent on the year.

This is a recording: it is not paying off to be overweight Canadian equities in your portfolio and it hasn’t paid off in some time. If you’re unsure about your current asset allocation and need to know if any action needs to be taken, contact us!

Happy Ninth Birthday, Bull Market

The three major U.S. stock indexes, the S&P 500, the Dow Jones Industrial Average and the NASDAQ, all gained more than one per cent on Friday to celebrate the ninth birthday of the post-Housing Crisis bull market.

NASDAQ hit another record high on Friday, as the February jobs data outweighed inflation and rate hike fears.

As with the TSX, President Trump’s easing of tariff threats helped the markets to rise.

Weekly Market Wrap-Up

North America

  • The TSX closed at 15,578, up 193 points or 1.25% over the past week. YTD the TSX is down -3.89%.
  • The DOW closed at 25,336, up 798 points or 3.25% over the past week. YTD the DOW is up 2.50%.
  • The S&P closed at 2,787, up 96 points or 3.57% over the past week. YTD the S&P is up 4.23%.
  • The Nasdaq closed at 7,561, up 303 points or 4.17% over the past week. YTD the Nasdaq is up 9.53%.
  • Gold closed at 1,324, changed -7.00 points or 0.00% over the past week. YTD gold is up 1.07%.
  • Oil closed at 62.12, up 0.67 points or 1.09% over the past week. YTD oil is up 2.81%.
  • The USD/CAD closed at 0.7805, up 0.0040 points or 0.52% over the past week. YTD the USD/CAD is down -1.86%.

Europe/Asia

  • The MSCI closed at 2,125, up 35 points or 1.67% over the past week. YTD the MSCI is up 1.05%.
  • The Euro Stoxx 50 closed at 3,421, up 96 points or 2.89% over the past week. YTD the Euro Stoxx 50 is down -2.37%.
  • The FTSE closed at 7,225, up 155 points or 2.19% over the past week. YTD the FTSE is down -6.02%.
  • The CAC closed at 5,274, up 137 points or 2.67% over the past week. YTD the CAC is down -0.73%.
  • DAX closed at 12,347, up 433.00 points or 3.63% over the past week. YTD DAX is down -4.42%.
  • Nikkei closed at 21,469, up 287.00 points or 1.35% over the past week. YTD Nikkei is down -5.69%.
  • The Shanghai closed at 3,307, up 52.0000 points or 1.60% over the past week. YTD the Shanghai is changed 0.00%.

Fixed Income

  • The 10-Yr Bond Yield closed at 2.89, up 0.0300 points or 1.05% over the past week. YTD the 10-Yr Bond is up 20.42%.

Sources: Globe Advisor, Dynamic Funds

Frank Mueller

Weekly Update – March 2, 2018

“Don’t tell me what you value, show me your budget, and I’ll tell you what you value” – Joe Biden

Liberal Government Announces 2018 Federal Budget

On Tuesday, the Liberals and Finance Minister Bill Morneau announced their 2018 Federal Budget, the third budget of their term.

This budget is a bit of a mixed bag, with some changes but nothing drastic. Indeed, some have dubbed it a “placeholder” budget; the 2019 budget will probably be larger in scope in anticipation of a soon-to-follow federal election.

The Government expects to run a fiscal deficit through 2022-23, and Canada’s Debt-to-GDP is forecasted to decline to 28.4 per cent.

For those interested, you can read our full recap here.

Tax Checklists Have Been Emailed Out

Now that the 2017 RRSP Deadline has officially passed, we turn our attention next to the Tax Deadline.

All clients have been sent a tax reminder, including some notable changes for the 2017 Tax Year, and a link to the You First website’s Tax Centre.

As a reminder to our clients with non-registered accounts & income, you do not need to drop off your taxes until the week starting March 26th, to ensure that we capture all relevant income slips.

Self-employed clients do not need to file their returns until June 15th; however, you are still subject to any late-payment interest on your tax balance starting on May 1st.

Weekly Market Wrap-Up

North America

  • The TSX closed at 15,385, down -254 points or -1.62 per cent over the past week. YTD the TSX is down -5.08 per cent.
  • The DOW closed at 24,538, down -772 points or -3.05 per cent over the past week. YTD the DOW is down -0.73 per cent.
  • The S&P closed at 2,691, down -56 points or -2.04 per cent over the past week. YTD the S&P is up 0.64 per cent.
  • The NASDAQ closed at 7,258, down -79 points or -1.08 per cent over the past week. YTD the NASDAQ is up 5.14 per cent.
  • Gold closed at 1,324, down -17.00 points or -0.53 per cent over the past week. YTD gold is up 1.07 per cent.
  • Oil closed at 61.45, down -2.09 points or -3.29 per cent over the past week. YTD oil is up 1.70 per cent.
  • The USD/CAD closed at 0.7765, down -0.0149 points or -1.88 per cent over the past week. YTD the USD/CAD is down -2.36 per cent.

Europe/Asia

  • The MSCI closed at 2,090, down -27 points or -1.28 per cent over the past week. YTD the MSCI is down -0.62 per cent.
  • The Euro Stoxx 50 closed at 3,325, down -117 points or -3.40 per cent over the past week. YTD the Euro Stoxx 50 is down -5.11 per cent.
  • The FTSE closed at 7,070, down -174 points or -2.40 per cent over the past week. YTD the FTSE is down -8.04 per cent.
  • The CAC closed at 5,137, down -180 points or -3.39 per cent over the past week. YTD the CAC is down -3.31 per cent.
  • DAX closed at 11,914, down -570.00 points or -4.57 per cent over the past week. YTD DAX is down -7.77 per cent.
  • Nikkei closed at 21,182, down -711.00 points or -3.25 per cent over the past week. YTD Nikkei is down -6.95 per cent.
  • The Shanghai closed at 3,255, down -34.0000 points or -1.03 per cent over the past week. YTD the Shanghai is down -1.57 per cent.

Fixed Income

  • The 10-Yr Bond Yield closed at 2.86, down -0.0100 points or -0.35 per cent over the past week. YTD the 10-Yr Bond is up 19.17 per cent.

Sources: Globe Advisor, Dynamic Funds, Franklin Templeton