Monday, January 16, 2012

A first look at 2012

This Week in Business ended with a thud, as S&P dropped the ratings of 9 European countries. France and Austria lost their AAA status, as the problems of the peripheral countries have now come squarely home to the core economies of the continent. Germany's top rating was reaffirmed, but Spain and Italy dropped 2 notches, and all of the downgraded countries remained on negative watch. This indicates significant risk of further downgrades. As Europe continues to struggle with its crisis, this is not good news, as these countries are likely to face higher interest rates in future. The Euro dropped dramatically as rumours hit the market prior to the announcement. The Euro fell to multi month lows against the US and Canadian dollars, while the loonie weakening only slightly against the greenback. Commodities and stocks also fell on the news. Tensions over Iranian nuclear ambitions continue to rise, much to the chagrin of oil consumers around the world.


Despite all these concerns, Toronto finished a fairly solid week at 12231, while the Dow ended at 12422. The Nasdaq finished at 2711, and the S&P finished at 1289. Oil fell to 98.30, gold finished at 1639, and the Canadian dollar fell to 97.70 Despite European weakness, early indications coming from multinational quarterly results are pretty positive.

In this week's Beyond Funds Market Weekly, I discussed income generating investment alternatives for 2012. Click here for the podcast. http://www.am980.ca/BeyondFundsPodcasting.aspx

Tuesday, February 8, 2011

This Week in Business

This is Jeff Wareham, with This Week in Business. Another week, and more signs that the U.S. Federal Reserve is determined to add debt far into the ongoing U.S. recovery.  Canadians need to pay attention to this for at least two reasons.  First, it will continue to drive the surging loonie higher, or at least the greenback lower. Second, it will continue to impact the price of commodites, assets, food, and even bonds.  

North American markets stretched higher this week.   Toronto's TSX finished the week at 13792. The Dow in New York finished at 12092. The Standard and Poors index finished at 1311, and the Nasdaq finished at 2769.  Asian and European markets joined the party, ending broadly higher. Oil fell through the week, ending at 89 dollars,   Gold fell as investors seemed less concerned by uncertainty in Egypt well. The loonie recovered to 101.20 against the US greenback.  Events in the Middle East dominated the news, leaving domestic economic news literally in the dust.  Unemployment numbers in Canada were very positive, with a drop in local and national rates.  In fact, the employment level exceeded the high point prior to the downturn.  U.S. unemployment dropped dramatically, but over a million discouraged workers simply stopped looking, and only 36000 net new jobs were created.  Further negative housing data broke, and 3 more U.S. banks failed. Visit my blog at www.am980.ca, follow @beyondfunds on twitter, or tune in to Beyond Funds Market Weekly, Saturdays at 12:30 for further information on the market.


This is Jeff Wareham, with This Week in Business.  visit my blog at www.am980.ca, follow @beyondfunds on twitter, or tune in to Beyond Funds Market Weekly, Saturdays at 12:30 for further information on the market

Friday, January 21, 2011

This Week in Business

This is Jeff Wareham, with This Week in Business.  It was an up and down week for global markets, with investors obviously struggling to decide whether the bull market run will continue, or if it is time for a correction.  Toronto’s TSX finished the week at 13289, down for the week, while the Dow in New York finished the week at 11871.  The Nasdaq was down for the week, finishing at 2689.  Oil finished a rough week at 89.14 per barrel, but the Canadian dollar held it’s own versus the US greenback, off slightly on a weekly basis, but still above par at 100.6 cents US.  Gold got hammered, finishing the week at 1342 per ounce. 

It was an interesting week for technology investors, with numerous changes, planned and unplanned, at the helm of major technology companies.  Energy and mining stocks were hit by falling commodity prices.  Canadian banks held their own in the face of changes to lending regulations.  Global investors watched with interest the meeting between Presidents Obama and Hu Jintao of China.   Tune in to Beyond Funds market weekly Saturday at 12:30, visit www.am980.ca for up to date business news, or follow @beyondfunds on twitter for further market information.

Tune in this week, as | discuss investing like a pension or a hedge fund.

Wednesday, January 12, 2011

New Time, and Some New Ideas for 2011

Over the next few weeks, I will be reviewing eleven themes for 2011.

1) Yield matters. Look at dividends, corporate bonds, and trusts.
2) Think like a hedge fund or a pension.
3) Don't fight the Fed. Watch the impact of QE II on commodity and bond prices.
4) Avoid any actively managed Canadian Balanced fund. High fees, low returns.
5) Get a second opinion.
6) Consider flow through shares as a planning strategy.
7) Consider ETFs for diversification
8) Invest like a business owner. Buy great balance sheets and great income statements.
9) Use convertible debt in your portfolio.
10) Invest in assets that interest you.
11) Get out of wraps.

Tune in to AM980 Saturday at 12:30, and find out how these ideas can help you in 2011.

Thursday, October 14, 2010

What is new at MGI?

When spider webs unite they can tie up a lion.


-African Proverb



What is new at MGI?

Jeff Wareham and Anne Milne are teaming up together to create the Wareham Milne Group. Quite simply, we are both believers in the “team” approach, and our partnership offers the unique opportunity for us to focus on our unique skill sets. It will broaden and deepen the financial advisory experience of both of our clienteles.



As advisors we personally work with clients to provide financial and money management advice throughout their evolving life circumstances. Customized investment solutions are tailored for each family’s goals and needs.



Please allow us to introduce ourselves…



Anne Milne, BA, CIM, CFP

Anne has a unique and diverse career experience; she has been a social worker, a vocational counselor and an entrepreneur in women’s fashions. At the University of Western Ontario she studied sociology and has combined that background with economic studies to give her a unique perspective on the investment process. Her specialty is observing the ‘herd’ not only as it relates to stock market activity, but also how we as humans engage in herding behaviours for most social activities, including investing.



Jeff Wareham, BA, CLU, CFP

Jeff’s degree is in English and Economics. That means he can give you an economic forecast in language you can understand! Jeff focuses his time on helping investors achieve their financial goals using time-proven, “common sense” investment strategies. Jeff is also the host of Beyond Funds Weekly on AM980, a show dedicated to the needs of investors who may seek alternatives to traditional mutual funds. His show covers a wide range of current investment news and topics. He lives in London with his wife Ann Martin and their children. Ann joined his team in September 2008 as an Administrative Assistant.

Friday, July 9, 2010

Top five vacation destinations for your money

Top five vacation destinations for your money


With the lazy, hazy days of summer upon us, it may be the ideal time to send your money on vacation. The summers of our childhood may have been filled with risky adventures, but as we age, a quiet lakeside cottage, or even a leisurely evening on our deck, may be the high point of the summer. Similarly, I believe this summer will be a wonderful time to seek a secure, comfortable, peaceful destination for our money. In fact, with the many unsettling issues and potential events around the world, it may be a great summer to consider a “staycation.” The turbulence of our daily lives, which makes the quiet vacation destination so attractive, is also a compelling argument for seeking a safe harbour for the summer. Let’s take a look at my five ideal vacation destinations for our money.

1) Consider a “Staycation”

In a volatile world, there may never be a better time to seek the safe haven of the Canadian Domestic economy. We have a great government balance sheet, relatively business friendly economic policy, and a wealth of resources unmatched in the western world. We are readily accessible to the booming economies of the Far East, and we still have the best trade relationship with the US of any country in the world. The market may be turbulent on the low volumes of summer, so the opportunity may emerge to pick away at great Canadian companies with solid balance sheets and growth in revenue.

Take a Staycation. Buy Canada.

2) Avoid the roller coasters

The Flash Crash of May 6th remains largely unexplained. Europe is essentially bankrupt. The states in our southern neighbour are worse off than the EU. Global markets have recovered about half of the losses they experienced through the catastrophe of 2008 and early 2009, but have broken many important technical trend lines over the last couple weeks. The market reminds me of Space Mountain, the great dark roller coaster. You really don’t know what is coming next, you can’t see it, but you know it is going to be wild. I love roller coasters, but I think money belongs on the sidelines when the ride looks wild. Ultimately, the majority of long term equity returns have come from dividends, so why not look for stability, with a steady pattern of dividend growth.

Avoid the roller coasters. Buy dividend growers and lower volatility stocks.

3) Go somewhere boring

In January of this year, I took a very strong stance in favour of corporate bond funds. Virtually every advisor I knew was bearish on bonds. I took some heat for this stance, but I was right, and I continue to think the broad based hatred of bonds is misplaced. There is a lot to be said for return of your money trumping return on your money. In fact, even government debt has rallied recently, but I prefer corporate bonds over government bonds. Corporate bonds pay better interest than government bonds. Most Corporate balance sheets are far superior to those of governments. If the economic recovery continues, corporate will benefit from upgrades, and may even earn capital gains despite the fact that global yields on government debt will rise. If the economy stumbles, corporate bonds are much more likely to hold their own than stocks. Get paid to sit on the sidelines, whichever way the economy goes.

Go somewhere boring. Buy corporate bonds

4) Go somewhere unloved

Halloween of 2006 may have been the last time you considered the great, unloved, and dying segment of the Canadian investment market, the income trust. In their glory days, they were the darling of Bay Street. The beneficial tax treatment is disappearing. Investment dealers provide little research. If you held them in O6, they hurt you. Many are busted businesses, with busted capital structures, yet I believe they deserve a second look. With this painful environment, it is tough to own the trusts, but there are some real gems among them, with eye popping, often double digit distributions. I love income payers, so these unloved companies are on my radar.

Go somewhere unloved. Buy income trusts.

5) Consider a seasonal retreat

One of the most impressive interviews I have conducted was of Brooke Thackray, the author of a number of books, including an excellent guide on seasonal investing. Brooke has brought out an Exchange Traded Fund (ETF) that tracks the seasonal nature of the market. This ETF has been outstanding so far. If you want a copy of his book on the subject, let me know. If you want to put your money on autopilot for the summer, why not consider his ETF?

Consider a seasonal retreat. Buy the seasonal ETF.

Wednesday, May 12, 2010

The Canadian Success Story to Watch

Last week, I visited a wonderful, hospitable province, which, in my opinion, is the Canadian success story of the 21st century. It is almost hard to fathom that there is a province which;
-supplies 1/3 of the world’s potash
-supplies 1/4 of the world’s uranium
-is the 2nd largest oil producing province
-is the 3rd largest natural gas producing province
-is the 3rd largest coal producing province
-has significant oil sands potential
-has the world’s largest diamond exploration project (Shore Gold)
-has significant base and precious metal finds (zinc, copper, gold)
-has the largest rare earth minerals find in North America
-has significant potential for helium and associated gases
(Excerpted from “The World is Watching Saskatchewan” -49 North information brochure)
Few Canadians give much thought to Saskatchewan...but you should.  After years of overtly anti-business sentiment, an entrepreneur friendly government has risen to power.  Resource development is no longer a dirty word in Saskatchewan, and the result has been swift and dramatic.  Major mining company regional head offices are scattered around downtown Saskatoon.  The decades old population bleed has been stemmed, and the province grew by 30,000 last year.   Graduates who fled their homeland to Alberta, BC, and Ontario, are returning.  House prices have doubled.  Investment dollars are flowing in, and opportunity abounds.
Over the next few weeks, my show will concentrate on this growing investment opportunity.  Stay tuned...it really is an exciting opportunity.