“It Was June and The World Smelled of Roses” -Maud Hart Lovelace
TSX Enters Bull Market Territory
The Toronto stock market entered bull market territory Friday June 3, rising more than 20% over its lowest close in 2016 to date. The S&P/TSX composite index gained 89.79 points at 14,226.78, a 20.1% jump from its Jan. 20 close of 11,843.11. The loonie rose 0.95 of a U.S. cent to 77.26 cents US as the greenback faded against most major currencies following a disappointing American jobs report. U.S. markets closed in the red as investors grappled with the lower than expected jobs numbers for May. The lower-than-expected labour figures were good news for gold prices though as investors bet on the Fed delaying a rise in interest rates.
The Dow Jones industrial average was down 31.50 points at 17,807.06, while the broader S&P 500 lost 6.13 points to 2,099.13 and the Nasdaq stepped back 28.84 points to 4,942.52. In commodities, the August contract for gold rose US$30.30 to US$1,242.90 a troy ounce, the July contract for benchmark North American oil fell 55 cents to US$48.62 a barrel, while July natural gas fell 0.7 cents at US$2.398 per mmBTU.
Clients More Reliant On Financial Advisors, Surveys Find
The Canadian Securities Administrators’ (CSA) 2016 edition of its investor education survey found that a growing number of Canadians are relying on advisors, with 56% reporting that they utilize an advisor, up from 43% in 2006 when the CSA first carried out the survey. Moreover, investors cited advisors as their primary source of investing information and credited their advisors as the reason for reassessing their risk tolerance in the past year. The CSA survey found that 61% reviewed their level of risk tolerance during the year, up from 49% in 2012.
In addition, a survey from France-based Natixis Global Asset Management has also found that advice is the most important factor driving Canadian investors’ financial decisions, as 43% cited advice vs 21% who credited online research. The Natixis survey also found that investors generally value that advice, with 63% saying that those with advisors are more likely to reach their financial goals and 62% saying that advice is worth the cost.
The CSA survey was carried out by Innovative Research Group, which polled 4,298 Canadian adults online from Feb. 10-20. The Natixis survey was part of a larger global study of more than 7,100 investors in 21 countries. The Canadian component canvassed 300 individual investors with a minimum of $258,000 (US$200,000) in investable assets. It was also carried out online in February.
Sources: Bloomberg; Investment Executive; advisor.ca,