This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with your daily market wrap for June 30, 2008
Oil hit another new high today, but most North American markets shrugged it off. Toronto slowly gained steam, finishing the day up 112 points , while
the Dow lost earlier gains, up only 4 points. The NASDAQ finished off 23
points, and the S&P finished up 2 points ..oil rose to 143.09 dollars per barrel, and the Canadian dollar stayed fairly steady at 98.73 cents US. Gold closed at $932.50 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
For further information on the markets, visit my blog on AM 980's website, or at www.beyondfunds.ca
Monday, June 30, 2008
June 30, 2008 Morning Spot
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
June is coming to a close, and 2008 is half over.
The mid year report is not good.
Although the TSX has eked out a small gain since January, many global markets are down double digits, and are in official correction territory
On Saturday, I discussed seeking higher yielding, defensive, dividend paying stocks, as a way to protect your portfolio, with the emerging risk of inflation or stagflation.
Has the time come to restructure your portfolio for the realities of the current market?
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
June is coming to a close, and 2008 is half over.
The mid year report is not good.
Although the TSX has eked out a small gain since January, many global markets are down double digits, and are in official correction territory
On Saturday, I discussed seeking higher yielding, defensive, dividend paying stocks, as a way to protect your portfolio, with the emerging risk of inflation or stagflation.
Has the time come to restructure your portfolio for the realities of the current market?
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
Friday, June 27, 2008
June 27, 2008 Morning Spot
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
Yesterday’s sell off took New York’s Dow to its lowest point since October 2006. Investors could certainly be forgiven for being nervous, after the size of the move we have seen in June.
Is the correction over, or just getting started? How do you protect your portfolio, without missing the recovery when it eventually comes.
Tune in tomorrow, at 8:30 AM, as I share some ideas for surviving volatile markets, and positioning your portfolio for the second half of 2008.
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
Yesterday’s sell off took New York’s Dow to its lowest point since October 2006. Investors could certainly be forgiven for being nervous, after the size of the move we have seen in June.
Is the correction over, or just getting started? How do you protect your portfolio, without missing the recovery when it eventually comes.
Tune in tomorrow, at 8:30 AM, as I share some ideas for surviving volatile markets, and positioning your portfolio for the second half of 2008.
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
Wednesday, June 25, 2008
June 25, 2008 Morning spot
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
The latest numbers are out, and mutual fund returns have taken it on the chin, again.
Ninety two percent of Canadian equity funds failed to meet their benchmark for the latest quarter. That means that an investor had only an eight percent chance of beating the index over a three month period…and history has shown that the numbers get worse, the longer the time period that you measure.
Time after time, the story is the same…it is difficult for an investor, or an advisor, to beat the long term return of the market by buying mutual funds.
Fees are the biggest single problem. As your portfolio grows, more opportunities present themselves, to reduce the impact of fees, and improve your odds of generating solid returns for your portfolio.
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
The latest numbers are out, and mutual fund returns have taken it on the chin, again.
Ninety two percent of Canadian equity funds failed to meet their benchmark for the latest quarter. That means that an investor had only an eight percent chance of beating the index over a three month period…and history has shown that the numbers get worse, the longer the time period that you measure.
Time after time, the story is the same…it is difficult for an investor, or an advisor, to beat the long term return of the market by buying mutual funds.
Fees are the biggest single problem. As your portfolio grows, more opportunities present themselves, to reduce the impact of fees, and improve your odds of generating solid returns for your portfolio.
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
Tuesday, June 24, 2008
June 24, 2008 Daily Market Wrap
This is Jeff Wareham, Scotia McLeod wealth advisor, with your daily market wrap for June 24, 2008
Oil prices held their own again today, but yesterday's rally didn't. ...Toronto suffered sizeable losses, down over 300 points late in the day, before finishing down 282, while the Dow stumbled into the close, down 35
points. The NASDAQ finished off 17 points, and the S&P finished down 4
points..oil rose to 137.03 dollars per barrel, and the Canadian dollar rose to 98.81 cents US. Gold closed at $890 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
For further information on the markets, visit my blog on AM 980's website, or at www.beyondfunds.ca
Oil prices held their own again today, but yesterday's rally didn't. ...Toronto suffered sizeable losses, down over 300 points late in the day, before finishing down 282, while the Dow stumbled into the close, down 35
points. The NASDAQ finished off 17 points, and the S&P finished down 4
points..oil rose to 137.03 dollars per barrel, and the Canadian dollar rose to 98.81 cents US. Gold closed at $890 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
For further information on the markets, visit my blog on AM 980's website, or at www.beyondfunds.ca
Monday, June 23, 2008
June 23, 2008 Daily Market Wrap
This is Jeff Wareham, Scotia McLeod wealth advisor, with your daily market wrap for June 23, 2008
To many people's surprise, oil prices held their own today, in spite of comments out of Saudi Arabia yesterday...Toronto made up some of Friday's losses...the TSX recovered 111 points, while the Dow went nowhere, down
half a point. The NASDAQ finished off 20 points, and the S&P finished
flat..oil rose to 134.62 dollars per barrel, and the Canadian dollar stayed range bound at 98.48 cents US. Gold closed at $885 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
To many people's surprise, oil prices held their own today, in spite of comments out of Saudi Arabia yesterday...Toronto made up some of Friday's losses...the TSX recovered 111 points, while the Dow went nowhere, down
half a point. The NASDAQ finished off 20 points, and the S&P finished
flat..oil rose to 134.62 dollars per barrel, and the Canadian dollar stayed range bound at 98.48 cents US. Gold closed at $885 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
June 23, 2008 Morning Spot
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
Last week was certainly interesting, with a new record high on the TSX, followed by a significant sell off as the week came to a close.
This week may promise more of the same, as investors seek clarity on the direction of the price of oil.
Proper diversification should protect an investor from the risk of any single news item, but many studies have shown that Canadian investors are heavily concentrated in their home market.
As your portfolio grows, diversification becomes more and more important, and in times like these, it is critical to ensure you are diversified, and have a plan to stay that way.
Does your current plan have a strategy for diversification?
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
Last week was certainly interesting, with a new record high on the TSX, followed by a significant sell off as the week came to a close.
This week may promise more of the same, as investors seek clarity on the direction of the price of oil.
Proper diversification should protect an investor from the risk of any single news item, but many studies have shown that Canadian investors are heavily concentrated in their home market.
As your portfolio grows, diversification becomes more and more important, and in times like these, it is critical to ensure you are diversified, and have a plan to stay that way.
Does your current plan have a strategy for diversification?
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
Friday, June 20, 2008
June 20, 2008 Morning Spot
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
These last few weeks, I have discussed the opportunity to dramatically reduce your estate tax bill by giving a gift to charity.
In many cases, you may reduce or even eliminate the tax on your growing portfolio by using a well designed gift to a recognized charity. Tune in tomorrow, as I am joined by Colleen DeJaeger, of London Health Sciences Centre. She will help me dig deeper into the mechanics of leaving a gift to charity, and the reasons that you might consider choosing the Health Sciences Centre as a recipient
Find out if leaving a legacy is an option you might consider, as a part of your overall financial plan.
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
These last few weeks, I have discussed the opportunity to dramatically reduce your estate tax bill by giving a gift to charity.
In many cases, you may reduce or even eliminate the tax on your growing portfolio by using a well designed gift to a recognized charity. Tune in tomorrow, as I am joined by Colleen DeJaeger, of London Health Sciences Centre. She will help me dig deeper into the mechanics of leaving a gift to charity, and the reasons that you might consider choosing the Health Sciences Centre as a recipient
Find out if leaving a legacy is an option you might consider, as a part of your overall financial plan.
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
Thursday, June 19, 2008
June 19 2008 Daily Market Wrap
This is Jeff Wareham, Scotia McLeod wealth advisor, with your daily market wrap for June 19, 2008
I led off my morning comments yesterday with concerns about a drop in oil prices...Toronto's record close of yesterday took it on the chin today, led by a significant drop in oil prices...the TSX lost about 2 percent, down
283 points, while the Dow gained 34 points. The NASDAQ finished up 32
points, and the S&P finished up 5 points..oil fell nearly 5 dollars lower, to 131.89 dollars per barrel, and the Canadian dollar stayed steady against the US dollar at 98.54 cents US. Gold closed at $899 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
For further information on the markets, visit my blog on AM 980's website, or at www.beyondfunds.ca
I led off my morning comments yesterday with concerns about a drop in oil prices...Toronto's record close of yesterday took it on the chin today, led by a significant drop in oil prices...the TSX lost about 2 percent, down
283 points, while the Dow gained 34 points. The NASDAQ finished up 32
points, and the S&P finished up 5 points..oil fell nearly 5 dollars lower, to 131.89 dollars per barrel, and the Canadian dollar stayed steady against the US dollar at 98.54 cents US. Gold closed at $899 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
For further information on the markets, visit my blog on AM 980's website, or at www.beyondfunds.ca
Wednesday, June 18, 2008
June 18, 2008 Daily Market Wrap
This is Jeff Wareham, Scotia McLeod wealth advisor, with your daily market wrap for June 18, 2008
Toronto's TSX sagged all day long, before rallying to a record close, up. 4 points, to 15073 ...while the Dow shed 130 points, closing at 12029, after
dipping below 12000 intraday. The NASDAQ finished off 28 points, and the
S&P finished off 13 points..oil rallied slightly to 136.40 US dollars per barrel, and the Canadian dollar stayed a steady against the US dollar at 98.25 cents US. Gold closed at $896 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
For further information on the markets, visit my blog on AM 980's website, or at www.beyondfunds.ca
Toronto's TSX sagged all day long, before rallying to a record close, up. 4 points, to 15073 ...while the Dow shed 130 points, closing at 12029, after
dipping below 12000 intraday. The NASDAQ finished off 28 points, and the
S&P finished off 13 points..oil rallied slightly to 136.40 US dollars per barrel, and the Canadian dollar stayed a steady against the US dollar at 98.25 cents US. Gold closed at $896 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
For further information on the markets, visit my blog on AM 980's website, or at www.beyondfunds.ca
June 18, 2008 Morning Spot
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
Yesterday’s rally brought us to a new record close for Toronto, but our market remains out of step with global returns, as many markets remain far off of their highs.
Investors may be tempted to stay local in their thinking, and there are many reasons to be committed to investing in Canada for the long term, but a local view could become very expensive if we see any correction in either energy or commodity stocks in the next few months.
We have been through months of volatility and global uncertainty. Diversifying globally is not necessarily easy to do, or without risk, but it may protect you from the risk of a significant downturn in oil or commodity prices.
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
Yesterday’s rally brought us to a new record close for Toronto, but our market remains out of step with global returns, as many markets remain far off of their highs.
Investors may be tempted to stay local in their thinking, and there are many reasons to be committed to investing in Canada for the long term, but a local view could become very expensive if we see any correction in either energy or commodity stocks in the next few months.
We have been through months of volatility and global uncertainty. Diversifying globally is not necessarily easy to do, or without risk, but it may protect you from the risk of a significant downturn in oil or commodity prices.
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
Tuesday, June 17, 2008
June 17, 2008 Daily Market Wrap
This is Jeff Wareham, Scotia McLeod Wealth Advisor, with your daily market wrap for June 17. Toronto's TSX closed 124.55 points higher today on broad based strength. while The Dow closed 108.78 points lower, The NASDAQ was 11.94 points lower, and the S&P finished down 0.68 percent, or 9.21 points...oil settled at 133.73 US dollars per barrel and the Canadian dollar closed at 0.9828 This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
Monday, June 16, 2008
June 16, 2008 Daily Market Wrap
This is Jeff Wareham, Scotia McLeod wealth advisor, with your daily market wrap for June 16, 2008
Toronto's TSX rallied all day long, finishing up 165 points, despite a
small drop in oil prices...while the Dow shed 38 points. The NASDAQ
finished up 20 points, and the S&P finished flat..oil fell slightly to 133.95 US dollars per barrel, and the Canadian dollar stumbled a bit against the US dollar at 97.80 cents US. Gold closed at $883 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
For further information on the markets, visit my blog on AM 980's website, or at www.beyondfunds.ca
Toronto's TSX rallied all day long, finishing up 165 points, despite a
small drop in oil prices...while the Dow shed 38 points. The NASDAQ
finished up 20 points, and the S&P finished flat..oil fell slightly to 133.95 US dollars per barrel, and the Canadian dollar stumbled a bit against the US dollar at 97.80 cents US. Gold closed at $883 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
For further information on the markets, visit my blog on AM 980's website, or at www.beyondfunds.ca
June 16, 2008 Morning Spot
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
On Saturday, I spoke about the emergence of two innovative alternatives for investors who want the benefits of mutual funds, but know they need something more.
I focused on using deferred annuities, and institutional portfolios, but there are many alternatives.
Mutual funds are a powerful, flexible investment tool, but they are not the only way to achieve diversification…but for many investors, they should only be the starting point.
With proper planning, an advisor may construct a portfolio with many of the benefits of mutual funds, without many of the pitfalls.
Have you outgrown your mutual funds?
On Saturday, I spoke about the emergence of two innovative alternatives for investors who want the benefits of mutual funds, but know they need something more.
I focused on using deferred annuities, and institutional portfolios, but there are many alternatives.
Mutual funds are a powerful, flexible investment tool, but they are not the only way to achieve diversification…but for many investors, they should only be the starting point.
With proper planning, an advisor may construct a portfolio with many of the benefits of mutual funds, without many of the pitfalls.
Have you outgrown your mutual funds?
Saturday, June 14, 2008
June 13, 2008 Daily Market Wrap
This is Jeff Wareham, Scotia McLeod wealth advisor, with your daily market wrap for June 13, 2008
A positive end to a negative week, as the Canadian market headed North, and the Dow followed suit, despite higher than expected inflation numbers....Toronto surged all day, up 178 points, with strength in tech and
Financials offsetting a drop in oil...while the Dow added 166 points. The
NASDAQ finished up 50 points, and the S&P finished up 20 points..oil dipped to 134.88 US dollars per barrel, and the Canadian dollar stayed steady against the US dollar at 97.22 cents US. Gold closed at $870 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
For further information on the markets, Tune in Saturdays at 8:30 for Beyond Funds Market Weekly, visit my blog on AM 980's website, or at www.beyondfunds.ca
A positive end to a negative week, as the Canadian market headed North, and the Dow followed suit, despite higher than expected inflation numbers....Toronto surged all day, up 178 points, with strength in tech and
Financials offsetting a drop in oil...while the Dow added 166 points. The
NASDAQ finished up 50 points, and the S&P finished up 20 points..oil dipped to 134.88 US dollars per barrel, and the Canadian dollar stayed steady against the US dollar at 97.22 cents US. Gold closed at $870 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
For further information on the markets, Tune in Saturdays at 8:30 for Beyond Funds Market Weekly, visit my blog on AM 980's website, or at www.beyondfunds.ca
Friday, June 13, 2008
June 13, 2008 Morning Spot
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
June has been a rather volatile month for investors.
Tomorrow on Beyond Funds Market Weekly, I will discuss the week’s performance, and look at alternatives for investors outgrowing their mutual funds.
Many investors like mutual funds because they are relatively simple…once you buy them, there is little work involved.
This simplicity comes at a real price. Canadians pay the highest management expenses in the world. The management fees in a typical mutual fund solution will cost you about one quarter of the historical return of the Canadian market. Many of the mutual fund companies add real value, but it is tough for them to beat the index with the drag of a 2.5% management expense.
Learn about alternatives that give you access to these great asset managers, without the crushing burden of the management fees
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
June has been a rather volatile month for investors.
Tomorrow on Beyond Funds Market Weekly, I will discuss the week’s performance, and look at alternatives for investors outgrowing their mutual funds.
Many investors like mutual funds because they are relatively simple…once you buy them, there is little work involved.
This simplicity comes at a real price. Canadians pay the highest management expenses in the world. The management fees in a typical mutual fund solution will cost you about one quarter of the historical return of the Canadian market. Many of the mutual fund companies add real value, but it is tough for them to beat the index with the drag of a 2.5% management expense.
Learn about alternatives that give you access to these great asset managers, without the crushing burden of the management fees
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
June 12, 2008 Daily Market Wrap
This is Jeff Wareham, Scotia McLeod Wealth Advisor, with your daily market wrap, for June 12, 2008 Toronto's TSX closed 113.93 points lower today. while The Dow closed 57.81 points higher, The NASDAQ was 0.07 points lower, and the S&P finished up 0.33 percent, or 4.38 points...oil settled at 137.00 US dollars per barrel and the Canadian dollar closed at 0.9766 This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
Wednesday, June 11, 2008
June 11, 2008 Daily Market Wrap
is is Jeff Wareham, Scotia McLeod wealth advisor, with your daily market wrap for June 11, 2008
Oil was the big villain today, as energy price concerns knocked the wind out of the Dow's sails...Toronto's TSX flatlined into the close, off 20 points, with most sectors down, despite strength in energy and
materials...while the Dow lost 205 points. The NASDAQ finished off 54
points, and the S&P finished down 22 points..oil surged over $5 to 136.41 US dollars per barrel, and the Canadian dollar stabilized against the US dollar at 98.06 cents US. Gold closed at $880 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod is a division of Scotia Capital, member CIPF.
For further information on the markets, visit my blog on AM 980's website, or at www.beyondfunds.ca
Oil was the big villain today, as energy price concerns knocked the wind out of the Dow's sails...Toronto's TSX flatlined into the close, off 20 points, with most sectors down, despite strength in energy and
materials...while the Dow lost 205 points. The NASDAQ finished off 54
points, and the S&P finished down 22 points..oil surged over $5 to 136.41 US dollars per barrel, and the Canadian dollar stabilized against the US dollar at 98.06 cents US. Gold closed at $880 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod is a division of Scotia Capital, member CIPF.
For further information on the markets, visit my blog on AM 980's website, or at www.beyondfunds.ca
June 11, 2008 Morning Spot
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
On Monday I discussed using long term care insurance to protect your wealth. One of the reasons I suggest this alternative is the sheer number of people involved. As our population ages, the reality is that nearly half of all retirees will need some form of long term care, and the average length of stay in a long term care facility will be around two years…long enough to severely impact many financial plans. The situation is likely to get worse, as medical technology extends life, but may increase the survival rate of illnesses that once killed people, but now may only be debilitating.
Have you protected your assets from the risk of long term care?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
On Monday I discussed using long term care insurance to protect your wealth. One of the reasons I suggest this alternative is the sheer number of people involved. As our population ages, the reality is that nearly half of all retirees will need some form of long term care, and the average length of stay in a long term care facility will be around two years…long enough to severely impact many financial plans. The situation is likely to get worse, as medical technology extends life, but may increase the survival rate of illnesses that once killed people, but now may only be debilitating.
Have you protected your assets from the risk of long term care?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
June 10, 2008 Daily Market Wrap
This is Jeff Wareham, Scotia McLeod Wealth Advisor, with your daily market wrap for June 10, 2008
Material and energy stocks fell out of favour today, asToronto's TSX fell
224 points,...while the Dow gained 9 points. The NASDAQ finished off 10
points, and the S&P finished down 9 points..oil slid about $2 to 131.70 US dollars per barrel, and the Canadian dollar stayed steady against the US dollar at 97.79 cents US. Gold closed sold off to $867 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
Material and energy stocks fell out of favour today, asToronto's TSX fell
224 points,...while the Dow gained 9 points. The NASDAQ finished off 10
points, and the S&P finished down 9 points..oil slid about $2 to 131.70 US dollars per barrel, and the Canadian dollar stayed steady against the US dollar at 97.79 cents US. Gold closed sold off to $867 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
Monday, June 9, 2008
June 9, 2008 Morning Spot
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
Financial planning is about looking at the whole picture. Traditionally, advisors look at an individual having enough money to meet their monthly expenses. One item I frequently see overlooked is the emerging issue of long term care costs. Retirees may live for years after suffering a major health problem, and the impact is dramatic. If one member of a couple ends up needing care, the end result may be incurring the cost of running two households.
There are solutions…one of the best I have seen is the use of long term care insurance.
A properly crafted insurance solution may significantly reduce the risk to your money in retirement.
Have you protected your asset from the risk of long term care?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
Financial planning is about looking at the whole picture. Traditionally, advisors look at an individual having enough money to meet their monthly expenses. One item I frequently see overlooked is the emerging issue of long term care costs. Retirees may live for years after suffering a major health problem, and the impact is dramatic. If one member of a couple ends up needing care, the end result may be incurring the cost of running two households.
There are solutions…one of the best I have seen is the use of long term care insurance.
A properly crafted insurance solution may significantly reduce the risk to your money in retirement.
Have you protected your asset from the risk of long term care?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
June 7, 2008 Saturday morning show
This is Jeff Wareham, ScotiaMcLeod wealth advisor, with Beyond Funds Market weekly for June 7, 2008.
The first week of June 2008 seemed to be a miniature version of 2008 to date…credit concerns, rumours of instability at a major US broker, recession fears, unemployment, and spiraling oil prices…not to mention the divergence of performance between Canada and the US. New records fell this week, and any discussion of the week that was must clearly start with oil. By Wednesday, it appeared the dizzying spiral in oil prices might be abating…then, supply fears and political tensions led to a 13 percent spike over 2 days, and fast money flowed to crude, from US equity. The Dow and S&P plunged 3 percent on Friday as the traders moved away from stocks, on the back of an unexpectedly large rise in US unemployment.
The TSX actually had another strong week numerically, led by commodity and energy stocks. Friday saw the market spend much of the day in the heady territory above 15000, before fading 14969 at the close. This was a truly stellar performance beside the drooping Dow, which saw all 30 stocks fall, and S&P, which felt losses in every subsector.
Looking at global market performance, only commodity players are above water for the year, with Brazil, Mexico and Canada leading the way.
Is the strength in commodities here to stay?
In his monthly comments, ScotiaMcLeod:s Stephen Uzielli – Portfolio Manager, Equity Advisory Group notes:
“Last month former Chairman of the Federal Reserve Alan Greenspan said that the U.S. is still more likely than not to have a recession although he allowed that the there was less likelihood of a severe recession. Importantly he also said that it was premature to determine whether we had seen the worst of the financial crisis, saying this will ultimately be determined by the magnitude of the decline in housing prices. Those thoughts were echoed by U.S. Treasury Secretary Henry Paulson when he said it could take months until we see the end of the problems in financial markets.
These comments highlight our own concerns about the fragile nature of capital markets these days. Although we acknowledge that we may have seen the lows for the broad stock indices, the recent rally from the lows in March has been a case of too much, too soon; thus we remain cautious and expect significant volatility in the coming months. Even if the depths of the credit crisis are behind us, the most negative impacts on the consumer and domestic demand are yet to be seen. Longer term, we remain constructive and would be taking advantage of market dips to accumulate positions, particularly among defensive holdings and multinationals that can take advantage of growth in non-North American demand and the decline in the U.S. dollar.
Analysts have been steadily increasing their commodity price assumptions with the move in the price of crude oil above US$125 per barrel, and yet some estimates suggest that the share prices for Energy stocks are discounting only $80 per barrel. The most recent run-up in crude appears to be driven largely by speculation and the increased influence of financial players, as opposed to direct participants in the energy market. As a result, Energy stocks are vulnerable to a correction, at least in the short term.
Since last fall we have consistently made the argument that consensus estimates for corporate earnings growth were too high, and subject to downward revision. Our concerns were, and continue to stem from the implications on the broader industrial sectors of a U.S. economic slowdown driven by the slump in housing. Scotia Capital Portfolio Strategist Vincent Delisle wrote recently that: “In contrast to the S&P 500, which is still plagued by negative earnings revisions, the Canadian benchmark should continue to find solid support in these volatile markets in light of favourable profit wind. In the last three months, profit estimates have increased approximately 25% for Canadian Energy and Materials. U.S. resource companies have seen a more modest upswing in earnings revisions throughout the same period. In the U.S., eight of ten sectors are in negative earnings revisions versus five in Canada.
The spring equity rebound stumbled in the latter part of May, and mounting challenges to U.S. consumer spending, higher inflation, and record oil prices should translate into volatile markets in coming months.
Consumers have been resilient so far but they are now running out of alternatives. We expect Q2 and Q3 to offer weak macro headlines. Rising inflation expectations should exert upward pressure on long term yields, thus hurting bond performance and limiting multiple expansion”.
He adds that “May was a very strong month for the Canadian stock market, led higher by resource stocks responding to increasingly higher commodity prices. The top performing sectors during the period were Energy, Information Technology, and Materials.”
Uzielli goes on to state that “This cycle is reminiscent of the technology bubble at the beginning of this decade when the market’s direction, and amplitude, was driven by a very few number of stocks. Back then one stock, Nortel, represented close to 35%of the major Canadian index and portfolio managers were faced with the challenge of measuring their performance against a highly skewed market index. Recent conversations with several institutional money managers confirmed the existence of the same conundrum in the current market environment with the Energy sector representing almost 32% of the S&PTSX Index. And although it is a sub-index and not one single stock as in the Nortel days, it is one commodity, crude oil, which is driving almost a third of the “market”. Conservative portfolio management theory suggests that it is not prudent to allow any one position to be greater than 10% of a portfolio, and yet today we have a single commodity dictating valuations for the largest sub-sector of the market.
This is not to say we are negative on the Energy sector as it still represents 25% of the Canadian Core Portfolio and we do have a constructive outlook toward the group longer term. However, we remain underweight relative to the benchmark in keeping with our ongoing defensive bias, and our expectation that Canadian Financials, Telecommunication Services, Consumer Staples, and Industrials will outperform as the current cycle evolves.”
Uzielli’s comments came out before Friday’s market weakness, and they highlight one of the weaknesses in ETF investing, which I will highlight later in the show…just a reminder that you are listening to Beyond Funds Market Weekly, I am your host ScotiaMcLeod Wealth Advisor Jeff Wareham…stay tuned after the break, as I dig further into this issue, and I discuss the opportunity of leaving a planned gift to charity, and a couple of effective ways to do it.
Before the break, I was discussing the recent performance of the Canadian market and now I want to delve into the strength it has shown in the commodities boom, and the danger that a correction in commodities might present to an investor with heavy exposure to the Canadian market.
Before I begin this discussion, I must say that I am pleased with the creation of my new blog, at www.am980.ca, or www.beyondfunds.ca, where you may access past content from my show, and find further information on alternatives for investors outgrowing their mutual funds. I believe this will be a useful resource for investors with growing investment needs.
One of the most common quotes I frequently hear about commodities these days is “it’s different this time.” I cringe when I hear a commodities analyst or hedge fund manager on TV, espousing the view that “it’s different this time.” I harken back to the heady days of the tech bubble, when experts and mavens fought for the opportunity to tell us that valuations had nothing to do with such silly old concepts as earnings and profits…now it is about eyeballs and clicks…hogwash. Earnings, growth, and profits, are what business is all about. This key point is where the tech bubble and the commodities boom diverge…companies with no marketing plan or actual business model sold for millions or billions of dollars in the Tech Wreck, while the cornerstone companies of the commodities boom are posting often seemingly obscene profits. In that sense, it is different this time. Further, the growth of demand for commodities, from India and China, has created scarcity. As an economics graduate, I understand scarcity is another critical component for a long term boom in commodity prices. Scarcity in the energy field is exacerbated by the geopolitical realities of the world’s major oil suppliers…and the instability of oil production and refining capacity do make some of the price action in oil and gasoline seem sensible. Peak oil theorists will argue that production is declining just as demand exceeds supply, and that has led to the massive upswing in oil prices…again the story is credible, but is it the reason for the massive upswing we have seen in the price of oil?
I buy the bullish story on oil and other commodities…I am just not convinced “it is different this time.” Global oil demand is rising. China and India are consuming much more oil, gold, copper, and even food and water, as they emerge, from agrarian states into major, developing economies, and this trend will continue.
This bull case has led to the emergence of new ETFs, or exchange traded funds, and I think this is another, less frequently discussed, contributing factor. Why would this matter? Many global investors want to diversify by holding commodities as an alternative to investing in businesses. For example, you might choose to own gold, if you think that the US dollar is likely to fall, as historically the greenback and gold have moved in a countercyclical manner. Holding gold was once the reserve of central banks, and the wealthy, due to the cost of storage and security…but not now. You may buy certificates or ETFs backed up by real gold ownership…and there is a definite correlation to the increase in gold over the last few years, and the emergence of gold ETFs.
More and more ETFs come to market all the time. Commodity ones are hot, and these are having a real effect on the cost of the underlying commodities. When investors buy the fund, the fund buys the underlying commodities.
Hedge funds and traders also move quickly in and out of markets, and many follow the momentum, ride it, and sell before the momentum swings the other way.
Oil, gold, and many other commodities are being caught up in this perfect storm of demand.
The problem is, as with any bubble, even one based on sound underlying principles…that any unwinding of demand is like a precipice…once you have reached the top, look out below if you stumble. Yesterday’s market action had some very troubling, or at least telling, characteristics. Oil spiked over eight percent in one day, yet the price of the world’s largest oil producer fell. Does that make sense? Not really. Movement like this is frequently characteristic of bubbles.
If the so called fast money flows out of oil or other commodities, look out below.
Problem is, many Canadians have no idea what a big bet we generally have on the price of commodities. As I discussed in segment one, our index is now a commodities index, just as it was a tech index in the days of the tech bubble. The fall of one big tech player shaved about 50 percet off of our index in a couple of years. Many index or Canadian Equity mutual funds paid the price…and I fear that we are headed there again.
Don’t get me wrong. Our resource industries are booming, and are likely to survive a drop of commodities to more reasonable levels…but company valuations will swing with a downturn in price and earnings.
Funny thing is, I have given ETFs some of the blame for the commodities boom…but I also think they are part of the solution. Many global markets are not s levered to the price of commodities, and ETFs are a low cost way to invest in global markets, without the risk of owning an individual security, or the cost of a global mutual fund. ScotiaMcLeod, and most other major firms, can provide a list of ETFs chosen to provide this diversification, and it is a real alternative to discuss with your advisor.
It is time for our second break…stay tuned to Beyond Funds Market Weekly…after the break, I will talk further about making a planned gift to charity as a part of your estate plan.
Last week, I shared the idea of leaving a legacy to a charity of your choice…this week, I found some further information, including an article from The Toronto Star, written last September, by Talbot Boggs…I thought I would share a couple of excerpts with you…Boggs notes “Each year, millions of Canadians donate money to their favourite charities and receive a tax credit for their philanthropic efforts.
By giving through their life insurance policies, however, they can
significantly increase the size of their donation and they can choose how they receive the tax benefit, either as a tax credit today or as a credit for their estate in the future. "Life insurance is one of several strategies that Canadians can use to maximize their charitable donations…
Statistics Canada figures show that Canadian individuals, corporations and foundations donated a total of about $11 billion to the more than 80,000 registered charitable organizations in 2005.
To receive a tax benefit, the money donated must be considered a gift by
the Canada Revenue Agency. Gifts include cash, gifts in kinds like stocks and real estate, or a right to a future payment, such as proceeds from a life insurance policy.
A donation may be a gift the charity can use now or a deferred gift that only is available in the future, usually through a life insurance policy after the donor's death. To be eligible for a tax benefit, donations must be made to authorized charitable organizations, public and private foundations that fund good works, registered amateur athletic associations, governments and government agencies in Canada, and some foreign charities and universities.
Life insurance is a cost-effective means that allows you to make a much larger contribution to your charity of choice than would otherwise be possible.”
Further in the article, Boggs notes “Life insurance is just one of several other charitable donation strategies. You also may donate securities, property, annuities, RRSPs and, of course, cash. A charitable donation will only qualify for a tax credit for up to 75 per cent of the net income of the donor during his or her lifetime or up to 100 per cent at the time of the donor's death. If the donation exceeds the limit, there is a carry forward provision for five years during the lifetime of the donor or a one-year carry back provision at the time of the donor's death for the estate.
Despite the tax advantages, most Canadians donate to charities for other "All studies show that the tax benefit is the last reason why people give to charities," says Marvi Ricker, vice-president and managing director of philanthropic services with BMO Financial Group.
"They donate because they want to give back to society, they are interested in the cause, or because they are very well off financially and want to do something to help other people," Ricker says. Most donations go to religious organizations, followed by social services agencies such as the United Way, educational institutions and health-care groups, Ricker says.”
Bogg’s article raises some good points, and I agree that most people who choose to use insurance to leave a legacy may not do it for tax reasons, but consider this…why would you leave your money to Federal and Provincial taxes, when you may benefit a cause that has meant something to you instead.
Insurance has typically been used to protect against the risk of future financial loss. However, more and more, innovative insurance solutions are being used to safeguard the value of investors’ assets in a tax efficient manner. The gift of life insurance can be effective in providing a practical and affordable way to make sizeable charitable gifts to your favourite charities or private foundation. Not only will life insurance help increase the size of your gift, in most cases it will provide significant tax benefits.
There are Four Ways to Leave a Legacy through Life Insurance
1. Transfer ownership of a paid-up policy to a charity. This is equivalent to an outright gift of cash in the amount of the policy’s cash surrender value. The charity can surrender the policy immediately or retain it until the insured individual dies and collect the death benefit then.
2. Transfer ownership of an existing policy in which the premiums are still being paid. A policy is gifted to a charity and the person receives charitable receipts for each subsequent premium. Tax savings are received during life from donating the policy itself and subsequent premiums. The charity will receive the death benefit but no further receipt will be issued.
3. Create a new policy and name the charity as owner and beneficiary. This is an effective way to donate to a charity you are currently supporting. You receive a tax
receipt for annual premiums but not for the death benefit.
4. Designate the charity as the beneficiary of a new or existing policy so that the charity will receive the life insurance proceeds at death.
This will not generate any tax credit during your lifetime however the amount of the death benefit will be paid out as if it was a bequest made in your Will. In the year of death, your estate will receive a charitable receipt for the face amount of death benefit that the charity receives.
For individuals who are committed to making a meaningful legacy, planning a charitable gift is part of a comprehensive philanthropic plan. The plan should be driven by your values to create the most lasting contribution in the future. Insurance solutions for charitable gifting include annuities, life insurance, and wealth replacement plans. Your advisor will help you to develop a charitable plan utilizing insurance solutions that are integrated into your financial plan and reflect your investment and legacy objectives, while minimizing taxes on your estate and for your beneficiaries.
I am a big believer in using life insurance as a way to minimize or eliminate estate taxes, while giving a significant benefit to charity. Over the next few months, I will host members of various local charitable groups, and give them the opportunity to tell their story, and share how planned gifts have helped their cause.
That brings us to the end of another segment of Beyond Funds Market Weekly…I am your host, ScotiaMcLeod Wealth Advisor Jeff Wareham. If you have a question or comment on any content from my show, call me at (519) 660-3260, or email me, at jeff_wareham@scotiacapital.com. Show content, and additional market ideas and commentary may be found on my blog, at www.beyondfunds.ca, or on the AM 980 web site. Thanks for tuning in!
The first week of June 2008 seemed to be a miniature version of 2008 to date…credit concerns, rumours of instability at a major US broker, recession fears, unemployment, and spiraling oil prices…not to mention the divergence of performance between Canada and the US. New records fell this week, and any discussion of the week that was must clearly start with oil. By Wednesday, it appeared the dizzying spiral in oil prices might be abating…then, supply fears and political tensions led to a 13 percent spike over 2 days, and fast money flowed to crude, from US equity. The Dow and S&P plunged 3 percent on Friday as the traders moved away from stocks, on the back of an unexpectedly large rise in US unemployment.
The TSX actually had another strong week numerically, led by commodity and energy stocks. Friday saw the market spend much of the day in the heady territory above 15000, before fading 14969 at the close. This was a truly stellar performance beside the drooping Dow, which saw all 30 stocks fall, and S&P, which felt losses in every subsector.
Looking at global market performance, only commodity players are above water for the year, with Brazil, Mexico and Canada leading the way.
Is the strength in commodities here to stay?
In his monthly comments, ScotiaMcLeod:s Stephen Uzielli – Portfolio Manager, Equity Advisory Group notes:
“Last month former Chairman of the Federal Reserve Alan Greenspan said that the U.S. is still more likely than not to have a recession although he allowed that the there was less likelihood of a severe recession. Importantly he also said that it was premature to determine whether we had seen the worst of the financial crisis, saying this will ultimately be determined by the magnitude of the decline in housing prices. Those thoughts were echoed by U.S. Treasury Secretary Henry Paulson when he said it could take months until we see the end of the problems in financial markets.
These comments highlight our own concerns about the fragile nature of capital markets these days. Although we acknowledge that we may have seen the lows for the broad stock indices, the recent rally from the lows in March has been a case of too much, too soon; thus we remain cautious and expect significant volatility in the coming months. Even if the depths of the credit crisis are behind us, the most negative impacts on the consumer and domestic demand are yet to be seen. Longer term, we remain constructive and would be taking advantage of market dips to accumulate positions, particularly among defensive holdings and multinationals that can take advantage of growth in non-North American demand and the decline in the U.S. dollar.
Analysts have been steadily increasing their commodity price assumptions with the move in the price of crude oil above US$125 per barrel, and yet some estimates suggest that the share prices for Energy stocks are discounting only $80 per barrel. The most recent run-up in crude appears to be driven largely by speculation and the increased influence of financial players, as opposed to direct participants in the energy market. As a result, Energy stocks are vulnerable to a correction, at least in the short term.
Since last fall we have consistently made the argument that consensus estimates for corporate earnings growth were too high, and subject to downward revision. Our concerns were, and continue to stem from the implications on the broader industrial sectors of a U.S. economic slowdown driven by the slump in housing. Scotia Capital Portfolio Strategist Vincent Delisle wrote recently that: “In contrast to the S&P 500, which is still plagued by negative earnings revisions, the Canadian benchmark should continue to find solid support in these volatile markets in light of favourable profit wind. In the last three months, profit estimates have increased approximately 25% for Canadian Energy and Materials. U.S. resource companies have seen a more modest upswing in earnings revisions throughout the same period. In the U.S., eight of ten sectors are in negative earnings revisions versus five in Canada.
The spring equity rebound stumbled in the latter part of May, and mounting challenges to U.S. consumer spending, higher inflation, and record oil prices should translate into volatile markets in coming months.
Consumers have been resilient so far but they are now running out of alternatives. We expect Q2 and Q3 to offer weak macro headlines. Rising inflation expectations should exert upward pressure on long term yields, thus hurting bond performance and limiting multiple expansion”.
He adds that “May was a very strong month for the Canadian stock market, led higher by resource stocks responding to increasingly higher commodity prices. The top performing sectors during the period were Energy, Information Technology, and Materials.”
Uzielli goes on to state that “This cycle is reminiscent of the technology bubble at the beginning of this decade when the market’s direction, and amplitude, was driven by a very few number of stocks. Back then one stock, Nortel, represented close to 35%of the major Canadian index and portfolio managers were faced with the challenge of measuring their performance against a highly skewed market index. Recent conversations with several institutional money managers confirmed the existence of the same conundrum in the current market environment with the Energy sector representing almost 32% of the S&PTSX Index. And although it is a sub-index and not one single stock as in the Nortel days, it is one commodity, crude oil, which is driving almost a third of the “market”. Conservative portfolio management theory suggests that it is not prudent to allow any one position to be greater than 10% of a portfolio, and yet today we have a single commodity dictating valuations for the largest sub-sector of the market.
This is not to say we are negative on the Energy sector as it still represents 25% of the Canadian Core Portfolio and we do have a constructive outlook toward the group longer term. However, we remain underweight relative to the benchmark in keeping with our ongoing defensive bias, and our expectation that Canadian Financials, Telecommunication Services, Consumer Staples, and Industrials will outperform as the current cycle evolves.”
Uzielli’s comments came out before Friday’s market weakness, and they highlight one of the weaknesses in ETF investing, which I will highlight later in the show…just a reminder that you are listening to Beyond Funds Market Weekly, I am your host ScotiaMcLeod Wealth Advisor Jeff Wareham…stay tuned after the break, as I dig further into this issue, and I discuss the opportunity of leaving a planned gift to charity, and a couple of effective ways to do it.
Before the break, I was discussing the recent performance of the Canadian market and now I want to delve into the strength it has shown in the commodities boom, and the danger that a correction in commodities might present to an investor with heavy exposure to the Canadian market.
Before I begin this discussion, I must say that I am pleased with the creation of my new blog, at www.am980.ca, or www.beyondfunds.ca, where you may access past content from my show, and find further information on alternatives for investors outgrowing their mutual funds. I believe this will be a useful resource for investors with growing investment needs.
One of the most common quotes I frequently hear about commodities these days is “it’s different this time.” I cringe when I hear a commodities analyst or hedge fund manager on TV, espousing the view that “it’s different this time.” I harken back to the heady days of the tech bubble, when experts and mavens fought for the opportunity to tell us that valuations had nothing to do with such silly old concepts as earnings and profits…now it is about eyeballs and clicks…hogwash. Earnings, growth, and profits, are what business is all about. This key point is where the tech bubble and the commodities boom diverge…companies with no marketing plan or actual business model sold for millions or billions of dollars in the Tech Wreck, while the cornerstone companies of the commodities boom are posting often seemingly obscene profits. In that sense, it is different this time. Further, the growth of demand for commodities, from India and China, has created scarcity. As an economics graduate, I understand scarcity is another critical component for a long term boom in commodity prices. Scarcity in the energy field is exacerbated by the geopolitical realities of the world’s major oil suppliers…and the instability of oil production and refining capacity do make some of the price action in oil and gasoline seem sensible. Peak oil theorists will argue that production is declining just as demand exceeds supply, and that has led to the massive upswing in oil prices…again the story is credible, but is it the reason for the massive upswing we have seen in the price of oil?
I buy the bullish story on oil and other commodities…I am just not convinced “it is different this time.” Global oil demand is rising. China and India are consuming much more oil, gold, copper, and even food and water, as they emerge, from agrarian states into major, developing economies, and this trend will continue.
This bull case has led to the emergence of new ETFs, or exchange traded funds, and I think this is another, less frequently discussed, contributing factor. Why would this matter? Many global investors want to diversify by holding commodities as an alternative to investing in businesses. For example, you might choose to own gold, if you think that the US dollar is likely to fall, as historically the greenback and gold have moved in a countercyclical manner. Holding gold was once the reserve of central banks, and the wealthy, due to the cost of storage and security…but not now. You may buy certificates or ETFs backed up by real gold ownership…and there is a definite correlation to the increase in gold over the last few years, and the emergence of gold ETFs.
More and more ETFs come to market all the time. Commodity ones are hot, and these are having a real effect on the cost of the underlying commodities. When investors buy the fund, the fund buys the underlying commodities.
Hedge funds and traders also move quickly in and out of markets, and many follow the momentum, ride it, and sell before the momentum swings the other way.
Oil, gold, and many other commodities are being caught up in this perfect storm of demand.
The problem is, as with any bubble, even one based on sound underlying principles…that any unwinding of demand is like a precipice…once you have reached the top, look out below if you stumble. Yesterday’s market action had some very troubling, or at least telling, characteristics. Oil spiked over eight percent in one day, yet the price of the world’s largest oil producer fell. Does that make sense? Not really. Movement like this is frequently characteristic of bubbles.
If the so called fast money flows out of oil or other commodities, look out below.
Problem is, many Canadians have no idea what a big bet we generally have on the price of commodities. As I discussed in segment one, our index is now a commodities index, just as it was a tech index in the days of the tech bubble. The fall of one big tech player shaved about 50 percet off of our index in a couple of years. Many index or Canadian Equity mutual funds paid the price…and I fear that we are headed there again.
Don’t get me wrong. Our resource industries are booming, and are likely to survive a drop of commodities to more reasonable levels…but company valuations will swing with a downturn in price and earnings.
Funny thing is, I have given ETFs some of the blame for the commodities boom…but I also think they are part of the solution. Many global markets are not s levered to the price of commodities, and ETFs are a low cost way to invest in global markets, without the risk of owning an individual security, or the cost of a global mutual fund. ScotiaMcLeod, and most other major firms, can provide a list of ETFs chosen to provide this diversification, and it is a real alternative to discuss with your advisor.
It is time for our second break…stay tuned to Beyond Funds Market Weekly…after the break, I will talk further about making a planned gift to charity as a part of your estate plan.
Last week, I shared the idea of leaving a legacy to a charity of your choice…this week, I found some further information, including an article from The Toronto Star, written last September, by Talbot Boggs…I thought I would share a couple of excerpts with you…Boggs notes “Each year, millions of Canadians donate money to their favourite charities and receive a tax credit for their philanthropic efforts.
By giving through their life insurance policies, however, they can
significantly increase the size of their donation and they can choose how they receive the tax benefit, either as a tax credit today or as a credit for their estate in the future. "Life insurance is one of several strategies that Canadians can use to maximize their charitable donations…
Statistics Canada figures show that Canadian individuals, corporations and foundations donated a total of about $11 billion to the more than 80,000 registered charitable organizations in 2005.
To receive a tax benefit, the money donated must be considered a gift by
the Canada Revenue Agency. Gifts include cash, gifts in kinds like stocks and real estate, or a right to a future payment, such as proceeds from a life insurance policy.
A donation may be a gift the charity can use now or a deferred gift that only is available in the future, usually through a life insurance policy after the donor's death. To be eligible for a tax benefit, donations must be made to authorized charitable organizations, public and private foundations that fund good works, registered amateur athletic associations, governments and government agencies in Canada, and some foreign charities and universities.
Life insurance is a cost-effective means that allows you to make a much larger contribution to your charity of choice than would otherwise be possible.”
Further in the article, Boggs notes “Life insurance is just one of several other charitable donation strategies. You also may donate securities, property, annuities, RRSPs and, of course, cash. A charitable donation will only qualify for a tax credit for up to 75 per cent of the net income of the donor during his or her lifetime or up to 100 per cent at the time of the donor's death. If the donation exceeds the limit, there is a carry forward provision for five years during the lifetime of the donor or a one-year carry back provision at the time of the donor's death for the estate.
Despite the tax advantages, most Canadians donate to charities for other "All studies show that the tax benefit is the last reason why people give to charities," says Marvi Ricker, vice-president and managing director of philanthropic services with BMO Financial Group.
"They donate because they want to give back to society, they are interested in the cause, or because they are very well off financially and want to do something to help other people," Ricker says. Most donations go to religious organizations, followed by social services agencies such as the United Way, educational institutions and health-care groups, Ricker says.”
Bogg’s article raises some good points, and I agree that most people who choose to use insurance to leave a legacy may not do it for tax reasons, but consider this…why would you leave your money to Federal and Provincial taxes, when you may benefit a cause that has meant something to you instead.
Insurance has typically been used to protect against the risk of future financial loss. However, more and more, innovative insurance solutions are being used to safeguard the value of investors’ assets in a tax efficient manner. The gift of life insurance can be effective in providing a practical and affordable way to make sizeable charitable gifts to your favourite charities or private foundation. Not only will life insurance help increase the size of your gift, in most cases it will provide significant tax benefits.
There are Four Ways to Leave a Legacy through Life Insurance
1. Transfer ownership of a paid-up policy to a charity. This is equivalent to an outright gift of cash in the amount of the policy’s cash surrender value. The charity can surrender the policy immediately or retain it until the insured individual dies and collect the death benefit then.
2. Transfer ownership of an existing policy in which the premiums are still being paid. A policy is gifted to a charity and the person receives charitable receipts for each subsequent premium. Tax savings are received during life from donating the policy itself and subsequent premiums. The charity will receive the death benefit but no further receipt will be issued.
3. Create a new policy and name the charity as owner and beneficiary. This is an effective way to donate to a charity you are currently supporting. You receive a tax
receipt for annual premiums but not for the death benefit.
4. Designate the charity as the beneficiary of a new or existing policy so that the charity will receive the life insurance proceeds at death.
This will not generate any tax credit during your lifetime however the amount of the death benefit will be paid out as if it was a bequest made in your Will. In the year of death, your estate will receive a charitable receipt for the face amount of death benefit that the charity receives.
For individuals who are committed to making a meaningful legacy, planning a charitable gift is part of a comprehensive philanthropic plan. The plan should be driven by your values to create the most lasting contribution in the future. Insurance solutions for charitable gifting include annuities, life insurance, and wealth replacement plans. Your advisor will help you to develop a charitable plan utilizing insurance solutions that are integrated into your financial plan and reflect your investment and legacy objectives, while minimizing taxes on your estate and for your beneficiaries.
I am a big believer in using life insurance as a way to minimize or eliminate estate taxes, while giving a significant benefit to charity. Over the next few months, I will host members of various local charitable groups, and give them the opportunity to tell their story, and share how planned gifts have helped their cause.
That brings us to the end of another segment of Beyond Funds Market Weekly…I am your host, ScotiaMcLeod Wealth Advisor Jeff Wareham. If you have a question or comment on any content from my show, call me at (519) 660-3260, or email me, at jeff_wareham@scotiacapital.com. Show content, and additional market ideas and commentary may be found on my blog, at www.beyondfunds.ca, or on the AM 980 web site. Thanks for tuning in!
June 6, 2008 Daily Market Wrap
This is Jeff Wareham, Scotia McLeod wealth advisor, with your daily market wrap for June 6, 2008
Two dramatic stories in the market today. Oil was up over 10 dollars, and up over 13 percent over two days...and US unemployment was dramatically higher, with the highest monthly jump since the seventies.
Toronto's TSX closed 13.36 points lower, while The Dow closed 394.64 points lower, around 3 percent, The NASDAQ was 64.72 points lower, and the S&P finished down 3.09 percent, or 43.37 points...oil surged to 138.86 US dollars per barrel and the Canadian dollar closed at 0.9806
For further information on the markets, visit my blog on AM 980's website, at www.beyondfunds.ca
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
Two dramatic stories in the market today. Oil was up over 10 dollars, and up over 13 percent over two days...and US unemployment was dramatically higher, with the highest monthly jump since the seventies.
Toronto's TSX closed 13.36 points lower, while The Dow closed 394.64 points lower, around 3 percent, The NASDAQ was 64.72 points lower, and the S&P finished down 3.09 percent, or 43.37 points...oil surged to 138.86 US dollars per barrel and the Canadian dollar closed at 0.9806
For further information on the markets, visit my blog on AM 980's website, at www.beyondfunds.ca
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
Friday, June 6, 2008
Exchange Traded Funds
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
I have spoken frequently on investor alternatives to mutual funds.
One low cost option is exchange traded funds…and they have become more varied and complex over the last few years.
I am a big believer in using ETFs to achieve global diversification, as they give exposure to entire markets or sectors, without the cost of global or sector mutual funds.
I am spending today in a session devoted to ETF alternatives, and tomorrow I will discuss the many pros and cons of using ETFs to help you achieve your long term investment goals.
Join me tomorrow at 8:30, as I review this emerging investment alternative.
I have spoken frequently on investor alternatives to mutual funds.
One low cost option is exchange traded funds…and they have become more varied and complex over the last few years.
I am a big believer in using ETFs to achieve global diversification, as they give exposure to entire markets or sectors, without the cost of global or sector mutual funds.
I am spending today in a session devoted to ETF alternatives, and tomorrow I will discuss the many pros and cons of using ETFs to help you achieve your long term investment goals.
Join me tomorrow at 8:30, as I review this emerging investment alternative.
Thursday, June 5, 2008
June 5, 2008 Daily Market Wrap
This is Jeff Wareham, Scotia McLeod wealth advisor, with your daily market wrap for June 5, 2008
Everyone was in a buying mood today, as the market shrugged off downgrades of the major US bond insurers, and charged ahead...Toronto's TSX surged 292 points, with most sectors up, especially the energy and materials...while
the Dow surged 213 points. The NASDAQ finished up 46 points, and the S&P
finished 26 points..oil surged over $5 to 127.76 US dollars per barrel, and the Canadian dollar stabilized against the US dollar at 98.36 cents US. Gold closed at $875 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
Everyone was in a buying mood today, as the market shrugged off downgrades of the major US bond insurers, and charged ahead...Toronto's TSX surged 292 points, with most sectors up, especially the energy and materials...while
the Dow surged 213 points. The NASDAQ finished up 46 points, and the S&P
finished 26 points..oil surged over $5 to 127.76 US dollars per barrel, and the Canadian dollar stabilized against the US dollar at 98.36 cents US. Gold closed at $875 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
Wednesday, June 4, 2008
June 4, 2008 Daily Market Wrap
This is Jeff Wareham, Scotia McLeod wealth advisor, with your daily market wrap for June 4, 2008
Oil was the story today...Toronto's TSX slid 38 points, even though most
sectors were up...while the Dow slid 12 points. The NASDAQ finished up
23 points, and the S&P finished off half a point..oil fell on US inventory data, to 121.98 US dollars per barrel, and the Canadian dollar slid further against the US dollar at 98.25 cents US. Gold closed at $878 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
Oil was the story today...Toronto's TSX slid 38 points, even though most
sectors were up...while the Dow slid 12 points. The NASDAQ finished up
23 points, and the S&P finished off half a point..oil fell on US inventory data, to 121.98 US dollars per barrel, and the Canadian dollar slid further against the US dollar at 98.25 cents US. Gold closed at $878 per ounce.
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
Explore Your Options
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
Day after day, month after month, more options emerge for investors with growing investment needs.
On Monday, I mentioned that I am hosting a seminar series, with other professionals, outlining the many alternatives for investors who have outgrown their mutual funds. If you have $250,000 or more to invest, you owe it to yourself to explore your options…many of which could save you thousands of dollars per year.
For further information, visit my blog on AM 980, www.beyondfunds.ca, and read about your alternatives.
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
Day after day, month after month, more options emerge for investors with growing investment needs.
On Monday, I mentioned that I am hosting a seminar series, with other professionals, outlining the many alternatives for investors who have outgrown their mutual funds. If you have $250,000 or more to invest, you owe it to yourself to explore your options…many of which could save you thousands of dollars per year.
For further information, visit my blog on AM 980, www.beyondfunds.ca, and read about your alternatives.
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing.
Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
Tuesday, June 3, 2008
June 3, 2008 Daily Market Wrap
This is Jeff Wareham, Scotia McLeod wealth advisor, with your daily market wrap for June 3, 2008
Fears that the global credit crisis may not be over upset North American markets today, as investors reacted to comments by Ben Bernanke, and rumours about a major US brokerage firm.
Toronto's TSX shed 85 points, while the Dow slid 104 points...with losses
accelerating as the rumours hit the street. The NASDAQ finished off 11
points, and the S&P finished off 7 points..oil slipped to 124.21, dollars per barrel, and the Canadian dollar slid below par with the US dollar at 99.14 cents US. Gold closed at $882 per ounce
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
For further information on the markets, visit my blog on AM 980's website, at www.beyondfunds.ca, or Tune in Saturday morning at 8:30 AM
Fears that the global credit crisis may not be over upset North American markets today, as investors reacted to comments by Ben Bernanke, and rumours about a major US brokerage firm.
Toronto's TSX shed 85 points, while the Dow slid 104 points...with losses
accelerating as the rumours hit the street. The NASDAQ finished off 11
points, and the S&P finished off 7 points..oil slipped to 124.21, dollars per barrel, and the Canadian dollar slid below par with the US dollar at 99.14 cents US. Gold closed at $882 per ounce
This is for information purposes only, Best efforts have been made to furnish accurate data...Performance data does not represent future performance. ScotiaMcLeod s a division of Scotia Capital, member CIPF.
For further information on the markets, visit my blog on AM 980's website, at www.beyondfunds.ca, or Tune in Saturday morning at 8:30 AM
Monday, June 2, 2008
Alternatives for Investors
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
You have heard my thoughts on alternatives for investors with growing portfolios. Over the next few months, I will be hosting a series of seminars, in conjunction with other professionals. In this seminar series, we will explore the unique issues and opportunities you will face as your portfolio grows. You will have the opportunity to hear the thoughts of professionals in accounting, money management, and trust services. If you have been wondering whether you should be taking a second look at your long term strategy, please feel free to join me at one of these upcoming seminars.
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
You have heard my thoughts on alternatives for investors with growing portfolios. Over the next few months, I will be hosting a series of seminars, in conjunction with other professionals. In this seminar series, we will explore the unique issues and opportunities you will face as your portfolio grows. You will have the opportunity to hear the thoughts of professionals in accounting, money management, and trust services. If you have been wondering whether you should be taking a second look at your long term strategy, please feel free to join me at one of these upcoming seminars.
Have you outgrown your mutual funds?
For a review your portfolio, or a complimentary copy of my CD, visit www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260.
This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.
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