“I Used To Be Snow White But I Drifted” -Mae West
Stocks Snap Out Of Two Day Dip
Stocks rebounded on Friday from a two-day selloff, but not enough to prevent the S&P 500 from breaking a seven-week winning streak. The S&P 500 closed at 1515.60, up 13.18 points or 0.9 per cent – but down about 4 points from the start of the week after sustaining its biggest one-day dip of the year on Wednesday. The S&P/TSX composite index advanced 61.65 points to 12,701.63 with all sectors positive, except for tech stocks. The blue-chip Dow Jones industrial average closed at 14,000.57, up 119.95 points or 0.9 per cent. German business confidence rose to its highest level in 10 months, stirring optimism that the euro zone’s biggest economy could be on the mend. It was the fourth monthly increase in a row, well above the 104.9 points expected by financial market analysts and supported the feeling that Europe’s biggest economy can avoid slipping into recession. Meanwhile, Canada’s already low inflation subsided further in January. Statistics Canada says the consumer price index rose 0.5% in January compared with a year earlier, a smaller increase than the 0.8% gain in December and the smallest increase since October 2009.
Canadian Prefer Mutual Funds In RRSPs
Despite the wide range of investment options currently available to Canadians, mutual funds remain the core investment choice for Registered Retirement Savings Plans (RRSPs), shows a study by BMO Financial. The poll finds that 72% of the participants with RRSPs hold mutual funds within their plan, and that mutual funds account for almost a third (31%) of all holdings held in RRSPs. “Mutual funds remain a popular investment option for the average Canadian investor because, among other benefits, they offer immediate diversification,” says Serge Pépin, vice president, investment strategy, BMO Asset Management Inc. “As Canadian Boomers begin to retire in greater numbers, it’s natural that many would be looking to generate income from their investments, including mutual funds. According to the study, Canadians invest in mutual funds for several reasons, including: They are professionally managed (30%); They invest in a variety of companies/holdings (28%); They have strong growth potential (26%); There is a wide variety from which to choose (22%).
Market Update as of February 22 2013
The TSX closed at 12701, up 14 points or 0.11% over the past week. YTD the TSX is up 1.28%.
The DOW closed at 14001, up 19 points or 0.14% over the past week.YTD the DOW is up 6.85%.
The S&P closed at 1516, down -4 points or -0.26% over the past week.YTD the S&P is up 6.31%.
The Nasdaq closed at 3162, down -30 points or -0.94% over the past week.YTD the Nasdaq is up 2.30%.
Gold closed at 1579, down -31.00 points or -1.93% over the past week.YTD gold is down -6.01%.
Oil closed at 93.33, down -2.61 points or -2.72% over the past week.YTD oil is up 0.82%.
The USD/CAD closed at 1.0208, up 0.0156 points or 1.55% over the past week.YTD the USD/CAD is up 3.36%.
Sources: Bloomberg; BMO; Investment Executive; advisor.ca