Predictors of Market Recovery

This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.

One of the most common questions I hear today is "When will I know the market downturn is over?" In past, one of the best predictors of the market's recovery is an increase in the price of high yield bonds. These have been hit almost as hard as stocks in the past four months, but history tells us that these bonds recover before stocks. Over the past month, they have rallied significantly, and this may be grounds for optimism in the recent recovery of equity prices. Although high yield bonds have rallied, they likely still present an opportunity for an investor, but you really should work with an advisor if you wish to invest in this area. Do you want to discuss 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