“Wisdom Begins In Wonder” -Socrates


Markets Gain After Japanese Stimulus

Canada’s main stock index advanced on Friday after the Bank of Japan’s fresh stimulus measures drove most major sectors higher, while shares of gold miners slumped with the price of bullion. The Toronto Stock Exchange’s S&P/TSX composite index closed up 154.63 points, or 1.07%, at 14,613.32. Eight of the 10 main sectors on the index were higher.

The Dow and S&P 500 ended at record highs on Friday and indexes posted strong gains for a second week after the Bank of Japan’s surprise move to ramp up its stimulus program. The Dow Jones industrial average rose 191.95 points, or 1.12%, to 17,387.37, the S&P 500 gained 23.03 points, or 1.15%, to 2,017.68 and the Nasdaq Composite added 64.60 points, or 1.41%, to 4,630.74, the highest close for the Nasdaq since March 2000. For the week, the S&P rose 2.7% and the Nasdaq rose 3.3 per cent. The Dow gained 3.4% in its biggest weekly advance since January 2013. The move by the Japanese central bank comes at a point when the U.S. Federal Reserve is winding up its marquee stimulus program. It announced Wednesday that quantitative easing would end at the end of October. The TSX ended last week ahead 69 points or 0.5% cent as stocks continue to claw back some of the losses racked up during a sell-off that peaked mid-October.


Many Canadians Don’t Save For Unexpected Events

Nearly half of Canadians (46%) dealt with a major unexpected event or emergency during the past year that required most of them either to borrow money or dip into their savings to cover the unplanned costs, finds a CIBC poll. Almost three-quarters (74%) of those who experienced the unexpected did not have enough dedicated emergency savings and were forced to find other sources of money to cover the expense. Almost one-third (29%) borrowed money from family, friends or a financial institution, or tapped their line of credit or credit cards. If they couldn’t access new funds, they either adjusted their household budget (18%), or used savings earmarked for other purposes (14%).

Among the most common emergencies were: major household repairs or purchases (27%);  major auto repairs or purchases (23%);  illnesses or medical bills (16%). The poll also found 41% of all Canadians have no emergency savings/rainy day funds and those aged 35-54 were more likely than the average Canadian not to have a rainy day fund (46% vs 41%), yet they were also more likely to have experienced an emergency in the past year (51% vs 46%).



New “Family’ Tax Cuts Announced 


Sources: Bloomberg; CIBC; Investment Executive; advisor.ca