This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
As we approach the New Year, why not make an investment New Year's Resolution. The time has come to consider whether you have outgrown your traditional mutual funds. Canadians pay the highest mutual fund management fees, and the bottom line is that regardless of the returns they generate, your mutual fund company still gets paid. If you have a portfolio of several hundred thousand dollars, the fact is, you are likely paying thousands of dollars in excess management fees. Do you know what you are paying, and have you considered the dramatic impact these costs have on your net worth? Why not take the time to find out. Do you want to discuss your alternatives?
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
Monday, December 29, 2008
Friday, December 26, 2008
Some Lessons from 2008
Some Lessons from 2008
As we prepare to close the chapter on 2008, few tears will be shed as we leave a truly dreadful year behind us. Before we consign the year to the dustbin, here are 10 lessons we can take from 2008 to help guide us going forward. In a few cases, these were new lessons – in most, however, they were reminders of things we had learned in the past but perhaps forgotten.
1. Mispricing of risk
Arguably, the root of the market downturn was the dramatic mispricing of risk by companies in the financial sector. Going forward, there will be much greater focus on the level of risk all companies assume and risk management will be crucial for every financial institution in particular. There will also be much greater emphasis by companies on transparency, managing complexity and ensuring that incentives for management are aligned with mid term shareholder interests.
This will be evident in two dominant areas, the cost of borrowing, and in the value given to equity investments, and their earnings. About eighteen months ago, I discussed the state of commercial borrowing with the president of a Canadian bank. He expressed that there was little return in commercial lending, and that it made no sense. He told me that there was little difference between the cost of government bonds, and commercial loans, so risk was not being rewarded, nor was it being priced properly. To his credit, he was proven right, but his company's stock has followed the financial sector lower.
The pendulum has swung to the other extreme, with high yield debt currently yielding around twenty one percent over government treasuries...approximately triple what would be considered normal. Incredibly strong companies are forced to pay well over ten percent to raise equity in the US today, and even the Canadian banks are paying eight percent or more to raise capital.
Common equity is even more expensive, with one Canadian bank dropping in price to the point where its dividend yielded in excess of ten percent. That would have been unthinkable as 2008 began.
2. A subprime mortgage bubble
The high cost of capital for banks may not be a surprise in a global market where money was loaned to people with little or no capacity to repay their loans.
It’s now evident that the trillion dollar subprime mortgage industry built around the run up in U.S. real estate prices and financial engineering on Wall Street was just as much a bubble as the high tech sector in 1999 – a reminder of the truth of the old adage that “if something seems too good to be true, it probably is.”
The irony is, the subprime market was primarily a US phenomenon, but its tentacles have polluted the balance sheets of financial institutions worldwide. As the bubble burst, Wall Street's engineering popped up everywhere. Worse, the well intentioned regulatory changes rearding bank balance sheet accounting were badly timed. As mortage defaults rose, mark to market accounting made many of the "toxic" assets nearly worthless, and this dramatically reduced bank lending capacity.
3. Lessons about owning stocks
The lesson was reinforced that stocks are not the place to be unless you have a time horizon of at least five years. After the income trust implosion of 2006 and the hit that banks around the world took this year (Canadian banks actually performed well compared to most countries), we were once again reminded that there is no such thing as a truly “safe” stock in the short term. The dramatic hit taken by U.S. banks and resource stocks was also a reminder of the risks of undue concentration in one sector, no matter how safe it might appear – and particularly of the inherent volatility of commodity-based companies.
That lesson stands in stark contrast to one basic fact; over the long term, stock ownership outperforms other asset classes in long term return. The key is, you must have that long term on your side, and reduce risk as short term cash needs increase.
4. The impact of leverage
We were reminded that the lessons about leverage are just as relevant for investors as for financial institutions - borrowing to invest cuts both ways, boosting return during rising markets but dramatically increasing losses in downturns. Nowhere is this more evident in the massive losses being experienced in highly leveraged US hedge funds, or even money centred US banks.
5. A new level of volatility
With the continuing presence of hyper short term oriented hedge funds, it appears that we’re going to have to get used to historically high levels of volatility. (It seems that the definition of short term has changed; short term investing used to mean investing for years, then months, days and hours – today short term can mean minutes and sometimes seconds.)
One of the more remarkable measurements of volatility is that the VIX, an index that essentially measures the degree of volatility is currently experiencind a 100 day moving average higher than the peak it reached after 9/11. That is insane.
Hedge funds have taken a lot of the blame, but there is plenty to go around, with leveraged ETFs, record mutual fund redemptions (October doubled the old record) and the unwinding of credit default products that were badly regulated, if regulated at all.
6. An interconnected world
In the period leading up to 2008, there was much conversation about global economies and stock markets becoming “decoupled” – and in particular less dependent on the U.S. The reality of 2008 reminded us our world continues to be very much an interconnected one – and that there is no escaping major financial downturns in leading economic sectors such as the U.S. or Europe.
The best evidence of decoupling's lie is the universality of global equity losses, with every major global equity market down 30 percent or more. Canada's own decoupling myth played out in the second half of 2008, with the unwinding of the hedge fund mania for commodities and energy, which crested in June, and saw nearly half of our market value dissolve from July to today. The oil bubble of 2008 will not soon be forgotten.
7. What it means to be truly diversified
We got a lesson about the virtues of true diversification – that if protecting ourselves from market declines is a priority, while it is important to own stocks across different sectors and markets, true diversification only comes by also owning high quality bonds and cash.
Every advisor has met with the client, who has experienced a number of years of solid equity returns, and who has been lulled into believing that holding a global equity mutual fund represents diversification. Worse yet is the investor with a few Canadian equity funds providing their safety net. This investor likely felt insulated from the global crisis in June, but has certainly suffered in the latter half of the year.
This lesson does not mean diversification has eliminated loss. Many properly diversified portfolios have been hit, as corporate bonds, high yield bonds, Asset Backed Commercial Paper, and even money market funds, have had their inglorious days during 2008
8. Maintaining discipline
When it comes to asset allocation, it’s critical that we stick to our guns and maintain our discipline – even when tempted to chase hot sectors or boost equity weightings after periods of strong returns.
9. “It’s different this time”
Some of the hedge fund and private equity investors who were lionized over the past five years and whose performance appeared to defy gravity emerged greatly humbled – again a reiteration of the danger of the words “it’s different this time.”
10. The key role of confidence
Even when it seems we’ve entered a new world, the old truths still apply. The most important element for economies and for markets to work is trust and fundamental confidence. We are unlikely to see a strong economic recovery until we see a return of confidence – confidence by banks in lending to consumers, businesses and each other; confidence by businesses in hiring and investing; confidence by consumers in spending and investing.
As we prepare to close the chapter on 2008, few tears will be shed as we leave a truly dreadful year behind us. Before we consign the year to the dustbin, here are 10 lessons we can take from 2008 to help guide us going forward. In a few cases, these were new lessons – in most, however, they were reminders of things we had learned in the past but perhaps forgotten.
1. Mispricing of risk
Arguably, the root of the market downturn was the dramatic mispricing of risk by companies in the financial sector. Going forward, there will be much greater focus on the level of risk all companies assume and risk management will be crucial for every financial institution in particular. There will also be much greater emphasis by companies on transparency, managing complexity and ensuring that incentives for management are aligned with mid term shareholder interests.
This will be evident in two dominant areas, the cost of borrowing, and in the value given to equity investments, and their earnings. About eighteen months ago, I discussed the state of commercial borrowing with the president of a Canadian bank. He expressed that there was little return in commercial lending, and that it made no sense. He told me that there was little difference between the cost of government bonds, and commercial loans, so risk was not being rewarded, nor was it being priced properly. To his credit, he was proven right, but his company's stock has followed the financial sector lower.
The pendulum has swung to the other extreme, with high yield debt currently yielding around twenty one percent over government treasuries...approximately triple what would be considered normal. Incredibly strong companies are forced to pay well over ten percent to raise equity in the US today, and even the Canadian banks are paying eight percent or more to raise capital.
Common equity is even more expensive, with one Canadian bank dropping in price to the point where its dividend yielded in excess of ten percent. That would have been unthinkable as 2008 began.
2. A subprime mortgage bubble
The high cost of capital for banks may not be a surprise in a global market where money was loaned to people with little or no capacity to repay their loans.
It’s now evident that the trillion dollar subprime mortgage industry built around the run up in U.S. real estate prices and financial engineering on Wall Street was just as much a bubble as the high tech sector in 1999 – a reminder of the truth of the old adage that “if something seems too good to be true, it probably is.”
The irony is, the subprime market was primarily a US phenomenon, but its tentacles have polluted the balance sheets of financial institutions worldwide. As the bubble burst, Wall Street's engineering popped up everywhere. Worse, the well intentioned regulatory changes rearding bank balance sheet accounting were badly timed. As mortage defaults rose, mark to market accounting made many of the "toxic" assets nearly worthless, and this dramatically reduced bank lending capacity.
3. Lessons about owning stocks
The lesson was reinforced that stocks are not the place to be unless you have a time horizon of at least five years. After the income trust implosion of 2006 and the hit that banks around the world took this year (Canadian banks actually performed well compared to most countries), we were once again reminded that there is no such thing as a truly “safe” stock in the short term. The dramatic hit taken by U.S. banks and resource stocks was also a reminder of the risks of undue concentration in one sector, no matter how safe it might appear – and particularly of the inherent volatility of commodity-based companies.
That lesson stands in stark contrast to one basic fact; over the long term, stock ownership outperforms other asset classes in long term return. The key is, you must have that long term on your side, and reduce risk as short term cash needs increase.
4. The impact of leverage
We were reminded that the lessons about leverage are just as relevant for investors as for financial institutions - borrowing to invest cuts both ways, boosting return during rising markets but dramatically increasing losses in downturns. Nowhere is this more evident in the massive losses being experienced in highly leveraged US hedge funds, or even money centred US banks.
5. A new level of volatility
With the continuing presence of hyper short term oriented hedge funds, it appears that we’re going to have to get used to historically high levels of volatility. (It seems that the definition of short term has changed; short term investing used to mean investing for years, then months, days and hours – today short term can mean minutes and sometimes seconds.)
One of the more remarkable measurements of volatility is that the VIX, an index that essentially measures the degree of volatility is currently experiencind a 100 day moving average higher than the peak it reached after 9/11. That is insane.
Hedge funds have taken a lot of the blame, but there is plenty to go around, with leveraged ETFs, record mutual fund redemptions (October doubled the old record) and the unwinding of credit default products that were badly regulated, if regulated at all.
6. An interconnected world
In the period leading up to 2008, there was much conversation about global economies and stock markets becoming “decoupled” – and in particular less dependent on the U.S. The reality of 2008 reminded us our world continues to be very much an interconnected one – and that there is no escaping major financial downturns in leading economic sectors such as the U.S. or Europe.
The best evidence of decoupling's lie is the universality of global equity losses, with every major global equity market down 30 percent or more. Canada's own decoupling myth played out in the second half of 2008, with the unwinding of the hedge fund mania for commodities and energy, which crested in June, and saw nearly half of our market value dissolve from July to today. The oil bubble of 2008 will not soon be forgotten.
7. What it means to be truly diversified
We got a lesson about the virtues of true diversification – that if protecting ourselves from market declines is a priority, while it is important to own stocks across different sectors and markets, true diversification only comes by also owning high quality bonds and cash.
Every advisor has met with the client, who has experienced a number of years of solid equity returns, and who has been lulled into believing that holding a global equity mutual fund represents diversification. Worse yet is the investor with a few Canadian equity funds providing their safety net. This investor likely felt insulated from the global crisis in June, but has certainly suffered in the latter half of the year.
This lesson does not mean diversification has eliminated loss. Many properly diversified portfolios have been hit, as corporate bonds, high yield bonds, Asset Backed Commercial Paper, and even money market funds, have had their inglorious days during 2008
8. Maintaining discipline
When it comes to asset allocation, it’s critical that we stick to our guns and maintain our discipline – even when tempted to chase hot sectors or boost equity weightings after periods of strong returns.
9. “It’s different this time”
Some of the hedge fund and private equity investors who were lionized over the past five years and whose performance appeared to defy gravity emerged greatly humbled – again a reiteration of the danger of the words “it’s different this time.”
10. The key role of confidence
Even when it seems we’ve entered a new world, the old truths still apply. The most important element for economies and for markets to work is trust and fundamental confidence. We are unlikely to see a strong economic recovery until we see a return of confidence – confidence by banks in lending to consumers, businesses and each other; confidence by businesses in hiring and investing; confidence by consumers in spending and investing.
Monday, December 22, 2008
Tax Free Savings Account
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
Lost in all of the noise of 2008 is the introduction of perhaps one of the best financial tools investors have seen in a long time, the Tax Free Savings Account. TFSAs are very attractive, for retirement saving, for education funding, and for estate planning, and every Canadian investor should set one up in 2009. They are simple, flexible, and will make a significant impact on the your ability to accumulate wealth. Over the next few months, you will hear a great deal of advertiing around these plans, and you really should consider setting one up, especially after the challenging year we have had.
Do you want to discuss your alternatives?
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
Lost in all of the noise of 2008 is the introduction of perhaps one of the best financial tools investors have seen in a long time, the Tax Free Savings Account. TFSAs are very attractive, for retirement saving, for education funding, and for estate planning, and every Canadian investor should set one up in 2009. They are simple, flexible, and will make a significant impact on the your ability to accumulate wealth. Over the next few months, you will hear a great deal of advertiing around these plans, and you really should consider setting one up, especially after the challenging year we have had.
Do you want to discuss your alternatives?
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
Investment Alternatives
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
Interest rates are nearing record lows, which is great news if you have a mortgage, but not so good if you are looking for secure returns in this volatile market. On Wednesday, I discussed that there are many investment alternatives for safety concious investors seeking better returns than GICs. Yesterday, I was reviewing a list of Canadian bank bonds, which were offering yields between eight and nine percent! I believe these represent incredible value in difficult markets, especially considering GIC rates. If you are feeling badly wounded by this market, why not seek the safe haven of bonds in Canadian financial institutions? For more information on this subject, tune in tomorrow at 8:30 for a more in depth discussion of the subject. Do you want to discuss your alternatives?
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
Interest rates are nearing record lows, which is great news if you have a mortgage, but not so good if you are looking for secure returns in this volatile market. On Wednesday, I discussed that there are many investment alternatives for safety concious investors seeking better returns than GICs. Yesterday, I was reviewing a list of Canadian bank bonds, which were offering yields between eight and nine percent! I believe these represent incredible value in difficult markets, especially considering GIC rates. If you are feeling badly wounded by this market, why not seek the safe haven of bonds in Canadian financial institutions? For more information on this subject, tune in tomorrow at 8:30 for a more in depth discussion of the subject. Do you want to discuss your alternatives?
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, December 17, 2008
Interest rates cut to all time low
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
Yesterday, the US Federal Reserve cut interest rates to its all time
low, essentially reducing the return on government investments to near
zero. Canadian interest rates appear headed the same direction.
Investors may be forced to seek riskier investments to earn any return
at all. Stocks rallied in response, but there are other alternatives,
like bank bonds, corporate bonds, and preferred shares, which are
offering yields of eight, nine, ten percent and beyond. Really
outstanding returns are available with very limited risk, but you
should work with an advisor to ensure you choose an investment that
suits your needs.
Do you want to discuss your alternatives?
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
for investors outgrowing their mutual funds.
Yesterday, the US Federal Reserve cut interest rates to its all time
low, essentially reducing the return on government investments to near
zero. Canadian interest rates appear headed the same direction.
Investors may be forced to seek riskier investments to earn any return
at all. Stocks rallied in response, but there are other alternatives,
like bank bonds, corporate bonds, and preferred shares, which are
offering yields of eight, nine, ten percent and beyond. Really
outstanding returns are available with very limited risk, but you
should work with an advisor to ensure you choose an investment that
suits your needs.
Do you want to discuss your alternatives?
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
Monday, December 15, 2008
Weekly Market Insights
December 15, 2008
Market Watch
The big picture
It’s official: Canada in recession
On Tuesday, the Bank of Canada declared that Canada is officially in recession as it cut its key interest rate by a larger-than-expected 75 basis points (a basis point is 1/100th of one percent). The Bank said it sees a "broader and deeper" global downturn than previously anticipated. The news triggered the Canadian dollar to fall by more than half a U.S. cent, and bond prices to rise sharply in anticipation of further rate cuts as the economy weakens.
Meanwhile, Japan sank further into recession in the third quarter, and a new round of grim economic data emerged from Europe. Japan was said to be considering spending US$216 billion on new economic stimulus, or roughly 3.6% of the nation’s GDP. At a summit in Brussels, EU countries announced new stimulus measures totalling US$264 billion, but recent data suggests more action might be needed, including additional rate cuts.
In the U.S., markets surged early in the week as president-elect Obama unveiled the largest American public works plan since the 1950s. The boost was certainly welcome: as of Tuesday, the only two Dow Jones Industrial Average stocks to show a positive one-year return were Wal-Mart and McDonald’s.
The markets
To bailout or not to bailout, that is the question
Following two weeks of record gains and losses, most shares continue to trade at the low end of their historical ranges based on both past earnings and expected future earnings.
Two significant equity market transactions failed to materialize this week. On Thursday, it was confirmed that the $52 billion privatization of BCE will definitely not proceed. Now BCE and its would-be purchasers appear set for a legal showdown to determine whether BCE is entitled to a $1.2 billion deal break-up fee.
On Friday morning, news broke that the US Senate had rejected a proposed $14 billion bailout of US automakers, throwing the industry’s prospects into doubt. Equity markets opened sharply lower on the news. A spokesperson for the US Treasury Department announced that they are prepared to act to avoid any possible collapse of America's three biggest automakers.
Our recommendation
Consistent cash flow counts
· Equities. Gareth Watson, Director, Portfolio Advisory Group, suggests that companies with steady, consistent cash flow are good bets for dividend-seeking investors. Consider names in sectors such as utilities, pipelines, and telecommunications.
· Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, says high quality corporate bonds, such as Canadian banks and insurance companies, continue to offer attractive yields relative to government issues.
· Portfolio strategy. Some regions and sectors have been hit harder than others. Consider reviewing your portfolio allocations to take advantage of lower relative valuations in these areas.
Jeff Wareham
Wealth Advisor
ScotiaMcLeod
148 Fullarton Street,
Suite 1801
London, ON
N6A 5P3
Tel: (519) 660-3260
Toll Free: (800) 265-1242
Fax: (519) 660-3208
Email Jeff
Visit my website
Greg Holland
Tel: (519) 660-3239
Email Greg
Ann Martin
Tel: (519) 660-3260
Email Ann
Unsubscribe
Privacy Policy and Legal Disclaimer
TM Trademarks used under authorization and control of The Bank of Nova Scotia.
ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF
This publication is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any of the securities mentioned in it. The author is an employee of ScotiaMcLeod, a division of Scotia Capital Inc. ("SCI"), but the data selection, analysis and views expressed herein are solely those of the author and not those of SCI. The author has taken all usual and reasonable precautions to determine that the information contained in this publication has been obtained from sources believed to be reliable and that the procedures used to summarize and analyze such information are based on approved practices and principles in the investment industry. However, the market forces underlying investment value are subject to sudden and dramatic changes and data availability varies from one moment to the next. Consequently, neither the author nor SCI can make any warranty as to the accuracy or completeness of information, analysis or views contained in this publication or their usefulness or suitability in any particular circumstance. You should not undertake any investment or portfolio assessment or other transaction on the basis of this publication, but should first consult your investment advisor, who can assess all relevant particulars of any proposed investment or transaction. SCI and the author accept no liability of whatsoever kind for any damages or losses incurred by you as a result of reliance upon or use of this publication in contravention of this notice. All performance data represents past performance and is not indicative of future performance. Scotia Capital Inc. and its affiliates collectively beneficially own in excess of 1% of one or more classes of the issued and outstanding equity securities of Royal Bank. Within the last 12 months, Scotia Capital Inc. and/or its affiliates have undertaken an underwriting liability with respect to equity or debt securities of, or have provided advice for a fee with respect to Royal Bank. TM Trademark used under authorization and control of The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF.
Market Watch
The big picture
It’s official: Canada in recession
On Tuesday, the Bank of Canada declared that Canada is officially in recession as it cut its key interest rate by a larger-than-expected 75 basis points (a basis point is 1/100th of one percent). The Bank said it sees a "broader and deeper" global downturn than previously anticipated. The news triggered the Canadian dollar to fall by more than half a U.S. cent, and bond prices to rise sharply in anticipation of further rate cuts as the economy weakens.
Meanwhile, Japan sank further into recession in the third quarter, and a new round of grim economic data emerged from Europe. Japan was said to be considering spending US$216 billion on new economic stimulus, or roughly 3.6% of the nation’s GDP. At a summit in Brussels, EU countries announced new stimulus measures totalling US$264 billion, but recent data suggests more action might be needed, including additional rate cuts.
In the U.S., markets surged early in the week as president-elect Obama unveiled the largest American public works plan since the 1950s. The boost was certainly welcome: as of Tuesday, the only two Dow Jones Industrial Average stocks to show a positive one-year return were Wal-Mart and McDonald’s.
The markets
To bailout or not to bailout, that is the question
Following two weeks of record gains and losses, most shares continue to trade at the low end of their historical ranges based on both past earnings and expected future earnings.
Two significant equity market transactions failed to materialize this week. On Thursday, it was confirmed that the $52 billion privatization of BCE will definitely not proceed. Now BCE and its would-be purchasers appear set for a legal showdown to determine whether BCE is entitled to a $1.2 billion deal break-up fee.
On Friday morning, news broke that the US Senate had rejected a proposed $14 billion bailout of US automakers, throwing the industry’s prospects into doubt. Equity markets opened sharply lower on the news. A spokesperson for the US Treasury Department announced that they are prepared to act to avoid any possible collapse of America's three biggest automakers.
Our recommendation
Consistent cash flow counts
· Equities. Gareth Watson, Director, Portfolio Advisory Group, suggests that companies with steady, consistent cash flow are good bets for dividend-seeking investors. Consider names in sectors such as utilities, pipelines, and telecommunications.
· Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, says high quality corporate bonds, such as Canadian banks and insurance companies, continue to offer attractive yields relative to government issues.
· Portfolio strategy. Some regions and sectors have been hit harder than others. Consider reviewing your portfolio allocations to take advantage of lower relative valuations in these areas.
Jeff Wareham
Wealth Advisor
ScotiaMcLeod
148 Fullarton Street,
Suite 1801
London, ON
N6A 5P3
Tel: (519) 660-3260
Toll Free: (800) 265-1242
Fax: (519) 660-3208
Email Jeff
Visit my website
Greg Holland
Tel: (519) 660-3239
Email Greg
Ann Martin
Tel: (519) 660-3260
Email Ann
Unsubscribe
Privacy Policy and Legal Disclaimer
TM Trademarks used under authorization and control of The Bank of Nova Scotia.
ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF
This publication is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any of the securities mentioned in it. The author is an employee of ScotiaMcLeod, a division of Scotia Capital Inc. ("SCI"), but the data selection, analysis and views expressed herein are solely those of the author and not those of SCI. The author has taken all usual and reasonable precautions to determine that the information contained in this publication has been obtained from sources believed to be reliable and that the procedures used to summarize and analyze such information are based on approved practices and principles in the investment industry. However, the market forces underlying investment value are subject to sudden and dramatic changes and data availability varies from one moment to the next. Consequently, neither the author nor SCI can make any warranty as to the accuracy or completeness of information, analysis or views contained in this publication or their usefulness or suitability in any particular circumstance. You should not undertake any investment or portfolio assessment or other transaction on the basis of this publication, but should first consult your investment advisor, who can assess all relevant particulars of any proposed investment or transaction. SCI and the author accept no liability of whatsoever kind for any damages or losses incurred by you as a result of reliance upon or use of this publication in contravention of this notice. All performance data represents past performance and is not indicative of future performance. Scotia Capital Inc. and its affiliates collectively beneficially own in excess of 1% of one or more classes of the issued and outstanding equity securities of Royal Bank. Within the last 12 months, Scotia Capital Inc. and/or its affiliates have undertaken an underwriting liability with respect to equity or debt securities of, or have provided advice for a fee with respect to Royal Bank. TM Trademark used under authorization and control of The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF.
December 15, 2008
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
With 2008 drawing quickly to a close, I am seeing many investors
looking at the Guaranteed Withdrawal Benefit plans like Manulife's
Income Plus, both as a way to defend themselves from market
volatility, and to capitalize on the fact that most feature annual
benefit guarantees each calendar year...in other words, December
purchases get the guarantee in January. These products have a lot of
terms and conditions, and should only be considered with the guidance
of an advisor, but any guarantee is a good thing if it helps you stick
with your long term plan.
Do you want to discuss your alternatives?
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
for investors outgrowing their mutual funds.
With 2008 drawing quickly to a close, I am seeing many investors
looking at the Guaranteed Withdrawal Benefit plans like Manulife's
Income Plus, both as a way to defend themselves from market
volatility, and to capitalize on the fact that most feature annual
benefit guarantees each calendar year...in other words, December
purchases get the guarantee in January. These products have a lot of
terms and conditions, and should only be considered with the guidance
of an advisor, but any guarantee is a good thing if it helps you stick
with your long term plan.
Do you want to discuss your alternatives?
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, December 12, 2008
Where Can an Investor turn for security?
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
It looks like another challenging day on the market, as the apparent failure of the auto bailout will shake investor confidence. Further, the arrest of the former chair of the NASDAQ will do little to help reassure the investing public. Day after day, new problems appear to unnerve even the bravest investor. Where can an investor turn for security in this challenging market environment?
Tune in tomorrow at 8:30, to Beyond Funds Market Weekly, as I review this week in the market, and discuss some of the alternatives that you should consider in these unprecedented times.
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.
It looks like another challenging day on the market, as the apparent failure of the auto bailout will shake investor confidence. Further, the arrest of the former chair of the NASDAQ will do little to help reassure the investing public. Day after day, new problems appear to unnerve even the bravest investor. Where can an investor turn for security in this challenging market environment?
Tune in tomorrow at 8:30, to Beyond Funds Market Weekly, as I review this week in the market, and discuss some of the alternatives that you should consider in these unprecedented times.
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, December 11, 2008
December 10, 2008
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
Falling equity prices are tough on everyone, but mutual fund investors are hit especially hard. Good markets or bad, Canadians pay the highest fund management fees in the world, and this is always a problem. When mutual funds are being hit by redemptions which most funds are right now, they are forced to sell their holdings to pay out investors, and often to cover their fees. The end result is that many funds are being forced to sell regardless of what the manager likes or dislikes. This impacts both returns and taxation. In fact many fund investors may end up with tax bills on their funds even though the funds are down.
The time has come to ask, “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.
Falling equity prices are tough on everyone, but mutual fund investors are hit especially hard. Good markets or bad, Canadians pay the highest fund management fees in the world, and this is always a problem. When mutual funds are being hit by redemptions which most funds are right now, they are forced to sell their holdings to pay out investors, and often to cover their fees. The end result is that many funds are being forced to sell regardless of what the manager likes or dislikes. This impacts both returns and taxation. In fact many fund investors may end up with tax bills on their funds even though the funds are down.
The time has come to ask, “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.
Monday, December 8, 2008
Factory Layoffs and Revisiting Retirement Plans
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
Most investors will be focused on Washington this week, as American
lawmakers struggle to save the troubled US automotive manufacturers.
Our region will certainly be watching closely, with our significant
exposure to the auto industry. As factories and suppliers lay off
thousands in this area, our whole economic situation is dramatically
impaired. Many workers in Southwestern Ontario are being forced to
revisit their retirement plans. If you are concerned about your
financial future, looking for a second opinion, or worried whether
your investments are sufficient to meet your retirement needs, give me
a call.
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
for investors outgrowing their mutual funds.
Most investors will be focused on Washington this week, as American
lawmakers struggle to save the troubled US automotive manufacturers.
Our region will certainly be watching closely, with our significant
exposure to the auto industry. As factories and suppliers lay off
thousands in this area, our whole economic situation is dramatically
impaired. Many workers in Southwestern Ontario are being forced to
revisit their retirement plans. If you are concerned about your
financial future, looking for a second opinion, or worried whether
your investments are sufficient to meet your retirement needs, give me
a call.
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, December 5, 2008
Retirement Savings
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
Traditional retirement thinking has taken quite a hit this year, and
many investors need to revisit their planning, to see if their dream
still matches their reality. A lot of press has been dedicated to the
short term slide in the market, but the long term impact on retirement
savings is the real story. Many investors are realizing that
retirement security is not about achieving some magic dollar value in
savings, but about ensuring they do not outlive their money, while
maintaining their desired lifestyle. Tune in tomorrow at 8:30, as i
discuss the new realities of retirement planning, and consider if it
is time for a fresh, new approach. 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
for investors outgrowing their mutual funds.
Traditional retirement thinking has taken quite a hit this year, and
many investors need to revisit their planning, to see if their dream
still matches their reality. A lot of press has been dedicated to the
short term slide in the market, but the long term impact on retirement
savings is the real story. Many investors are realizing that
retirement security is not about achieving some magic dollar value in
savings, but about ensuring they do not outlive their money, while
maintaining their desired lifestyle. Tune in tomorrow at 8:30, as i
discuss the new realities of retirement planning, and consider if it
is time for a fresh, new approach. 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
Thursday, December 4, 2008
Product Allocation
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
The Bear market of 2008 has put a dent in many portfolios. One of the
most common questions I hear is, "Will I still have enough for my
retirement?" Although many well made plans may have been derailed by
the recent market downturn, the fear is greatest among those within a
few years of retirement. One new concept that has emerged is product
allocation, which moves beyond traditional financial plans, focused
only on the ideal dollar amount and asset mix. This planning process
focuses on using the many investment vehicles available to retirees
today, and should significantly reduce the risk of outliving your
money. Want to learn more?
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
for investors outgrowing their mutual funds.
The Bear market of 2008 has put a dent in many portfolios. One of the
most common questions I hear is, "Will I still have enough for my
retirement?" Although many well made plans may have been derailed by
the recent market downturn, the fear is greatest among those within a
few years of retirement. One new concept that has emerged is product
allocation, which moves beyond traditional financial plans, focused
only on the ideal dollar amount and asset mix. This planning process
focuses on using the many investment vehicles available to retirees
today, and should significantly reduce the risk of outliving your
money. Want to learn more?
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
Monday, December 1, 2008
The big picture
The big picture
Obama announces economic team
Markets responded favourably to president-elect Barack Obama’s announcement of several key members of his economic team. On Monday, he tapped New York Federal Reserve President Timothy Geitner as his Treasury Secretary and named Lawrence Summers his Chief White House Economic Adviser. On Wednesday, he appointed former Federal Reserve Chairman Paul Volcker to head a new White House panel to create jobs and bring stability to the country's financial system. In making these announcements, Obama promised Americans that “help is on the way.”
Indeed, more help is already on the way. The U.S. government introduced a pair of new programs Tuesday that will provide US$800 billion to help unfreeze the market for consumer debt and to make mortgage loans cheaper and more available.
The new programs from the Federal Reserve and Treasury Department are the latest efforts to get the U.S. financial system back to more normal operations.
In Canada, federal Finance Minister Jim Flaherty did not announce any fiscal stimulus in Thursday’s economic update. However, he intends to move up the tabling of the next federal budget “as soon as possible” in order to introduce a package of infrastructure spending and other measures to stimulate the sagging economy.
The markets
Stocks looking up — except BCE
Volatility is going to remain high, but it’s hard not to get excited when markets post solid gains. In fact, the four trading days between Friday the 21st and Wednesday the 26th were the best four days of consecutive gains for U.S. markets since 1933, with the S&P 500 advancing 18%, the Nasdaq adding 16.4% and the Dow gaining 15.5%.
Over the same period, the S&P/TSX only managed a gain of 11.8%, with much of that underperformance likely attributable to the collapse of the BCE takeover deal. BCE shares dropped 34% on Wednesday, subtracting 133 points from the TSX in the process, on news that the $50 billion privatization deal led by the Ontario Teachers’ Pension Plan is now very unlikely to proceed after BCE failed to meet certain solvency tests in an auditor’s report. If you would like a copy of our latest report on BCE, please feel free to contact me.
Our recommendation
Consider banks for dividend yield
· Equities. Gareth Watson, Associate Director, Portfolio Advisory Group, suggests that some Canadian bank shares offer attractive and sustainable dividend yields. Consider Royal Bank and Bank of Nova Scotia.
· Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, recommends investors consider adding exposure to high quality corporate bonds, such as Canadian banks and insurance companies, which continue to offer attractive yields relative to government issues.
· Portfolio strategy. Some regions and sectors have been hit harder than others. Consider reviewing your portfolio allocations to take advantage of lower relative valuations in these areas.
Jeff Wareham
Wealth Advisor
ScotiaMcLeod
148 Fullarton Street,
Suite 1801
London, ON
N6A 5P3
Tel: (519) 660-3260
Toll Free: (800) 265-1242
Fax: (519) 660-3208
Email Jeff
Visit my website
Greg Holland
Tel: (519) 660-3239
Email Greg
Ann Martin
Tel: (519) 660-3260
Email Ann
Unsubscribe
Privacy Policy and Legal Disclaimer
TM Trademarks used under authorization and control of The Bank of Nova Scotia.
ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF
This publication is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any of the securities mentioned in it. The author is an employee of ScotiaMcLeod, a division of Scotia Capital Inc. ("SCI"), but the data selection, analysis and views expressed herein are solely those of the author and not those of SCI. The author has taken all usual and reasonable precautions to determine that the information contained in this publication has been obtained from sources believed to be reliable and that the procedures used to summarize and analyze such information are based on approved practices and principles in the investment industry. However, the market forces underlying investment value are subject to sudden and dramatic changes and data availability varies from one moment to the next. Consequently, neither the author nor SCI can make any warranty as to the accuracy or completeness of information, analysis or views contained in this publication or their usefulness or suitability in any particular circumstance. You should not undertake any investment or portfolio assessment or other transaction on the basis of this publication, but should first consult your investment advisor, who can assess all relevant particulars of any proposed investment or transaction. SCI and the author accept no liability of whatsoever kind for any damages or losses incurred by you as a result of reliance upon or use of this publication in contravention of this notice. All performance data represents past performance and is not indicative of future performance. Scotia Capital Inc. and its affiliates collectively beneficially own in excess of 1% of one or more classes of the issued and outstanding equity securities of Royal Bank. Within the last 12 months, Scotia Capital Inc. and/or its affiliates have undertaken an underwriting liability with respect to equity or debt securities of, or have provided advice for a fee with respect to Royal Bank. TM Trademark used under authorization and control of The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF.
Obama announces economic team
Markets responded favourably to president-elect Barack Obama’s announcement of several key members of his economic team. On Monday, he tapped New York Federal Reserve President Timothy Geitner as his Treasury Secretary and named Lawrence Summers his Chief White House Economic Adviser. On Wednesday, he appointed former Federal Reserve Chairman Paul Volcker to head a new White House panel to create jobs and bring stability to the country's financial system. In making these announcements, Obama promised Americans that “help is on the way.”
Indeed, more help is already on the way. The U.S. government introduced a pair of new programs Tuesday that will provide US$800 billion to help unfreeze the market for consumer debt and to make mortgage loans cheaper and more available.
The new programs from the Federal Reserve and Treasury Department are the latest efforts to get the U.S. financial system back to more normal operations.
In Canada, federal Finance Minister Jim Flaherty did not announce any fiscal stimulus in Thursday’s economic update. However, he intends to move up the tabling of the next federal budget “as soon as possible” in order to introduce a package of infrastructure spending and other measures to stimulate the sagging economy.
The markets
Stocks looking up — except BCE
Volatility is going to remain high, but it’s hard not to get excited when markets post solid gains. In fact, the four trading days between Friday the 21st and Wednesday the 26th were the best four days of consecutive gains for U.S. markets since 1933, with the S&P 500 advancing 18%, the Nasdaq adding 16.4% and the Dow gaining 15.5%.
Over the same period, the S&P/TSX only managed a gain of 11.8%, with much of that underperformance likely attributable to the collapse of the BCE takeover deal. BCE shares dropped 34% on Wednesday, subtracting 133 points from the TSX in the process, on news that the $50 billion privatization deal led by the Ontario Teachers’ Pension Plan is now very unlikely to proceed after BCE failed to meet certain solvency tests in an auditor’s report. If you would like a copy of our latest report on BCE, please feel free to contact me.
Our recommendation
Consider banks for dividend yield
· Equities. Gareth Watson, Associate Director, Portfolio Advisory Group, suggests that some Canadian bank shares offer attractive and sustainable dividend yields. Consider Royal Bank and Bank of Nova Scotia.
· Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, recommends investors consider adding exposure to high quality corporate bonds, such as Canadian banks and insurance companies, which continue to offer attractive yields relative to government issues.
· Portfolio strategy. Some regions and sectors have been hit harder than others. Consider reviewing your portfolio allocations to take advantage of lower relative valuations in these areas.
Jeff Wareham
Wealth Advisor
ScotiaMcLeod
148 Fullarton Street,
Suite 1801
London, ON
N6A 5P3
Tel: (519) 660-3260
Toll Free: (800) 265-1242
Fax: (519) 660-3208
Email Jeff
Visit my website
Greg Holland
Tel: (519) 660-3239
Email Greg
Ann Martin
Tel: (519) 660-3260
Email Ann
Unsubscribe
Privacy Policy and Legal Disclaimer
TM Trademarks used under authorization and control of The Bank of Nova Scotia.
ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF
This publication is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any of the securities mentioned in it. The author is an employee of ScotiaMcLeod, a division of Scotia Capital Inc. ("SCI"), but the data selection, analysis and views expressed herein are solely those of the author and not those of SCI. The author has taken all usual and reasonable precautions to determine that the information contained in this publication has been obtained from sources believed to be reliable and that the procedures used to summarize and analyze such information are based on approved practices and principles in the investment industry. However, the market forces underlying investment value are subject to sudden and dramatic changes and data availability varies from one moment to the next. Consequently, neither the author nor SCI can make any warranty as to the accuracy or completeness of information, analysis or views contained in this publication or their usefulness or suitability in any particular circumstance. You should not undertake any investment or portfolio assessment or other transaction on the basis of this publication, but should first consult your investment advisor, who can assess all relevant particulars of any proposed investment or transaction. SCI and the author accept no liability of whatsoever kind for any damages or losses incurred by you as a result of reliance upon or use of this publication in contravention of this notice. All performance data represents past performance and is not indicative of future performance. Scotia Capital Inc. and its affiliates collectively beneficially own in excess of 1% of one or more classes of the issued and outstanding equity securities of Royal Bank. Within the last 12 months, Scotia Capital Inc. and/or its affiliates have undertaken an underwriting liability with respect to equity or debt securities of, or have provided advice for a fee with respect to Royal Bank. TM Trademark used under authorization and control of The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF.
December 1, 2008
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
Lost in the news of terrorist attacks and Black Friday shopping,
something very unusual has happened over the last few days. The US
market has had it's greatest 5 day rally in 75 years, and Toronto has
posted six straight positive days. Sentiment among investors is very
negative, but with record cash on the sidelines, when the market
turns, it could turn very quickly, as investors jump in to avoid being
left behind. I believe we will continue to see short term volatility,
but I am very encouraged by the recent change in market sentiment, and
I believe that you should be looking very carefully at your mix of
assets, to determine if you are well positioned for the long term.
Most important, there are new, innovative ways to position yourself in
equities, while protecting your investment.
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
for investors outgrowing their mutual funds.
Lost in the news of terrorist attacks and Black Friday shopping,
something very unusual has happened over the last few days. The US
market has had it's greatest 5 day rally in 75 years, and Toronto has
posted six straight positive days. Sentiment among investors is very
negative, but with record cash on the sidelines, when the market
turns, it could turn very quickly, as investors jump in to avoid being
left behind. I believe we will continue to see short term volatility,
but I am very encouraged by the recent change in market sentiment, and
I believe that you should be looking very carefully at your mix of
assets, to determine if you are well positioned for the long term.
Most important, there are new, innovative ways to position yourself in
equities, while protecting your investment.
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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