This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
Many investors have chosen to put their RRSP contribution into cash,
and this is understandable with the damage to portfolios caused by
equities, Cash is safe, but it won't grow. If you are afraid to buy
equities, there are alternatives to grow your wealth. On Wednesday, I
spoke of the opportunity presented by corporate bonds. Many are
oferring near double digit returns. There are a couple additional
alternatives. Convertible debentures sound complicated, but they are
essentially bonds that will benefit if stocks recover. Preferred
shares are offering exceptional income without the risk of common
stock. Tune in tomorrow at 8:30 when I discuss these options to grow
your portfolio.
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,contribute cash this year.
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, February 27, 2009
Thursday, February 26, 2009
Despondent? It's probably time to buy
Stock prices at their lowest in a generation
Jonathan Chevreau, Financial Post
Published: Thursday, February 26, 2009
With markets this week threatening to retest the lows of last fall, investors have another chance to bottom-fish for alleged bargains. Problem is, the environment is so scary most investors fear plunging right to the bottom and never again coming up for air.
Bottoms are notoriously difficult to identify and premature bottom-fishing may be hazardous to your financial health. Optimists thought the bottom was in October, then November. Here it is February and things look worse than ever.
Perhaps you feel despondent, as I do. But that can be a good thing. Consider these words from Odlum Brown research director Murray Leith: "If you are feeling depressed and hopeless, there is a good chance we are near the point of 'maximum financial opportunity' otherwise known as the bottom."
Grabbing this opportunity requires risking that things get worse still. Some might advocate borrowing to invest while interest rates are low, while super-bears might take the opposite tack and bet on markets crumbling even more.
But even the most bearish of pundits, Robert Prechter, is now advising clients to close any short positions on U. S. stocks now that the S&P 500 index has touched 12-year lows. It was trading at 758 yesterday, just above the Nov. 20 low of 748.
Prechter warns of a possible "sharp and scary" rebound at this juncture -- scary if you're a short-seller, but welcome if you're long on the market, as is most of the mutual fund industry and its retail customers.
What do financial advisors think?
Clay Gillespie, vice president of Vancouver-based Rogers Group Financial, says this is one of the worst times possible to sell and therefore one of the best times to buy. "You will just need some patience as there should still be some significant volatility around the bottom."
London, Ont.-based Jeff Wareham, of ScotiaMcLeod, thinks clients should be buying quality stocks but, "if they are finding this market too unbearable to be a buyer, I am suggesting quality corporate bonds, like the fixed floaters of the Canadian banks."
Michael Nairne, president of Toronto-based Tactica Capital Inc., says stock valuations have not been this attractive since the early 1990s.
"Investors prone to regret or worry can gradually rebuild equity positions by averaging in over a 12-or 18-month period rather than a lump sum rebalancing."
Robert Cable, head of Mississauga, Ont.-based The Cable Group, can't say if the next 1,000-point move in the indexes will be up or down, but is sure the next 10,000-move will be up. "If you want to build wealth over your lifetime, you are far better off buying than selling today. There are oodles of high-quality stocks that are two-thirds off."
As fund manager James O'Shaughnessy noted recently, "market valuations are offering investors a gift that will probably not present itself again for a generation."
He warns "it could not be a worse time to try and change horses, since I believe we are nearly across the treacherous stream."
Savvy investors are well aware of this gift.
"As a younger investor, I'm wringing my hands in delight, since the lower the market goes the better the deals are," says Preet Banerjee, senior vice-president of Toronto-based Pro-Financial Asset Management Inc. "I'm backing up the truck right now. It's buy low, sell high, lest anyone forgets."
Dan Hallett, president of Windsor, Ont.-based Dan Hallett & Associates, has "little doubt" investing today will work out well over a decade or more. But, because the pain will continue, he suggests moving back in gradually.
Maybe we'll all feel better once spring arrives.
jchevreau@nationalpost.com
--- - Jonathan Chevreau is the author of Findependence Day and blogs at www.wealthy-boomer.ca
Jonathan Chevreau, Financial Post
Published: Thursday, February 26, 2009
With markets this week threatening to retest the lows of last fall, investors have another chance to bottom-fish for alleged bargains. Problem is, the environment is so scary most investors fear plunging right to the bottom and never again coming up for air.
Bottoms are notoriously difficult to identify and premature bottom-fishing may be hazardous to your financial health. Optimists thought the bottom was in October, then November. Here it is February and things look worse than ever.
Perhaps you feel despondent, as I do. But that can be a good thing. Consider these words from Odlum Brown research director Murray Leith: "If you are feeling depressed and hopeless, there is a good chance we are near the point of 'maximum financial opportunity' otherwise known as the bottom."
Grabbing this opportunity requires risking that things get worse still. Some might advocate borrowing to invest while interest rates are low, while super-bears might take the opposite tack and bet on markets crumbling even more.
But even the most bearish of pundits, Robert Prechter, is now advising clients to close any short positions on U. S. stocks now that the S&P 500 index has touched 12-year lows. It was trading at 758 yesterday, just above the Nov. 20 low of 748.
Prechter warns of a possible "sharp and scary" rebound at this juncture -- scary if you're a short-seller, but welcome if you're long on the market, as is most of the mutual fund industry and its retail customers.
What do financial advisors think?
Clay Gillespie, vice president of Vancouver-based Rogers Group Financial, says this is one of the worst times possible to sell and therefore one of the best times to buy. "You will just need some patience as there should still be some significant volatility around the bottom."
London, Ont.-based Jeff Wareham, of ScotiaMcLeod, thinks clients should be buying quality stocks but, "if they are finding this market too unbearable to be a buyer, I am suggesting quality corporate bonds, like the fixed floaters of the Canadian banks."
Michael Nairne, president of Toronto-based Tactica Capital Inc., says stock valuations have not been this attractive since the early 1990s.
"Investors prone to regret or worry can gradually rebuild equity positions by averaging in over a 12-or 18-month period rather than a lump sum rebalancing."
Robert Cable, head of Mississauga, Ont.-based The Cable Group, can't say if the next 1,000-point move in the indexes will be up or down, but is sure the next 10,000-move will be up. "If you want to build wealth over your lifetime, you are far better off buying than selling today. There are oodles of high-quality stocks that are two-thirds off."
As fund manager James O'Shaughnessy noted recently, "market valuations are offering investors a gift that will probably not present itself again for a generation."
He warns "it could not be a worse time to try and change horses, since I believe we are nearly across the treacherous stream."
Savvy investors are well aware of this gift.
"As a younger investor, I'm wringing my hands in delight, since the lower the market goes the better the deals are," says Preet Banerjee, senior vice-president of Toronto-based Pro-Financial Asset Management Inc. "I'm backing up the truck right now. It's buy low, sell high, lest anyone forgets."
Dan Hallett, president of Windsor, Ont.-based Dan Hallett & Associates, has "little doubt" investing today will work out well over a decade or more. But, because the pain will continue, he suggests moving back in gradually.
Maybe we'll all feel better once spring arrives.
jchevreau@nationalpost.com
--- - Jonathan Chevreau is the author of Findependence Day and blogs at www.wealthy-boomer.ca
Wednesday, February 25, 2009
Corporate bonds and preferred shares
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
With markets reaching multi year lows, one of the themes I am
emphasizing with investors is moving "up the balance sheet." This
means considering corporate bonds and preferred shares as an
alternative to equity investments. Companies are having a very tough
time raising money, and as a result,there are very high returns
available in both corporate bonds and preferred shares. With many
quality bonds and preferred shares paying yields near ten percent, why
not consider adding corporate debt to your portfolio. It should offer
you better returns than a money market, while offering greater
security than equities.
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
for investors outgrowing their mutual funds.
With markets reaching multi year lows, one of the themes I am
emphasizing with investors is moving "up the balance sheet." This
means considering corporate bonds and preferred shares as an
alternative to equity investments. Companies are having a very tough
time raising money, and as a result,there are very high returns
available in both corporate bonds and preferred shares. With many
quality bonds and preferred shares paying yields near ten percent, why
not consider adding corporate debt to your portfolio. It should offer
you better returns than a money market, while offering greater
security than equities.
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
Monday, February 23, 2009
Final week of 2008 RRSP
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
The final week of 2008 RRSP season is upon us. With global markets in turmoil, it may be tempting to resist the year end contribution, but it really does make sense to add to your plan in difficult times. The losses you may have suffered over the past year make it even more important to put money to work, if you want to ensure a secure retirement. You may have lost confidence in your investments, but do not lose sight of the value of investing. Seek a second opinion if you need it, but keep your eye on your long term goal. 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
The final week of 2008 RRSP season is upon us. With global markets in turmoil, it may be tempting to resist the year end contribution, but it really does make sense to add to your plan in difficult times. The losses you may have suffered over the past year make it even more important to put money to work, if you want to ensure a secure retirement. You may have lost confidence in your investments, but do not lose sight of the value of investing. Seek a second opinion if you need it, but keep your eye on your long term goal. 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
Friday, February 20, 2009
Weekly Newsletter
Market Watch
The big picture
Harper confident GM will remain in Canada
The U.S. Federal Reserve sharply downgraded its outlook for the economy this year, forecasting a deeper contraction and an unemployment rate near 9% by the end of the year. Most officials also indicated that they don't expect unemployment to return to a normal rate of about 5% until at least 2012. The contraction of the U.S. housing industry accelerated in January, as construction on new U.S. housing units plunged 16.8% to by far the weakest levels since the World War II era. Meanwhile, the Obama administration announced a $75 billion plan on Wednesday that aims to aid as many as 9 million households in fending off foreclosures.
Earlier this week, Prime Minister Stephen Harper said he is not concerned about the possibility of General Motors moving out of Canada as the Detroit-based company restructures its operations. As part of the restructuring, GM will slash another 47,000 jobs and may discontinue its Hummer and Saturn brands, scale back Pontiac, and sell Saab. Harper expressed confidence that the federal and provincial governments will supply the necessary funding to maintain a strong auto industry in Canada.
In an interview on German radio earlier on Wednesday, European Central Bank Executive Board member Jürgen Stark said the government stimulus plans announced recently will help stabilize the European economy by the end of 2009.
The markets
Wal-Mart earnings higher than expected
New fears about the deepening global recession and increased talk of U.S. bank nationalizations sent markets from Tokyo to New York lower this week. During trading on Friday, the Dow fell to its lowest level since 1997. Meanwhile U.S. gold futures climbed above the psychologically important level of $1,000/ounce on Friday as nervous investors turned to the commodity as a safe haven amid tumbling stocks and economic uncertainty.
Wal-Mart said it's enjoying a rise in customer traffic as the world's largest retailer released better-than-expected fourth-quarter earnings Tuesday. Shares of Wal-Mart rose more than 3% on the news even as the Dow and other major indices lost ground. Rogers Communications shares fell during the week after posting quarterly results that were lower than expectations due to higher costs associated with increased smartphone subscriber additions. The company increased its dividend from $1.00 to $1.16, effective immediately.
Our recommendation
Corporate bonds still offer attractive yields
· Equities. Economic statistics are anticipated to be at their worst over the next several months and Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group suggests that in response to any negative market reactions investors should be selectively building equity positions in quality companies to position portfolios for the next cycle.
· 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. Although credit spreads have tightened significantly, they still remain wide, and we recommend investors following the laddered portfolio process add exposure to these sectors when rolling maturities at this time.
· Portfolio strategy. With volatility still at record highs, it’s important to review the impact on your portfolio allocations and ensure that your holdings remain appropriate for your goals and risk tolerance.
The big picture
Harper confident GM will remain in Canada
The U.S. Federal Reserve sharply downgraded its outlook for the economy this year, forecasting a deeper contraction and an unemployment rate near 9% by the end of the year. Most officials also indicated that they don't expect unemployment to return to a normal rate of about 5% until at least 2012. The contraction of the U.S. housing industry accelerated in January, as construction on new U.S. housing units plunged 16.8% to by far the weakest levels since the World War II era. Meanwhile, the Obama administration announced a $75 billion plan on Wednesday that aims to aid as many as 9 million households in fending off foreclosures.
Earlier this week, Prime Minister Stephen Harper said he is not concerned about the possibility of General Motors moving out of Canada as the Detroit-based company restructures its operations. As part of the restructuring, GM will slash another 47,000 jobs and may discontinue its Hummer and Saturn brands, scale back Pontiac, and sell Saab. Harper expressed confidence that the federal and provincial governments will supply the necessary funding to maintain a strong auto industry in Canada.
In an interview on German radio earlier on Wednesday, European Central Bank Executive Board member Jürgen Stark said the government stimulus plans announced recently will help stabilize the European economy by the end of 2009.
The markets
Wal-Mart earnings higher than expected
New fears about the deepening global recession and increased talk of U.S. bank nationalizations sent markets from Tokyo to New York lower this week. During trading on Friday, the Dow fell to its lowest level since 1997. Meanwhile U.S. gold futures climbed above the psychologically important level of $1,000/ounce on Friday as nervous investors turned to the commodity as a safe haven amid tumbling stocks and economic uncertainty.
Wal-Mart said it's enjoying a rise in customer traffic as the world's largest retailer released better-than-expected fourth-quarter earnings Tuesday. Shares of Wal-Mart rose more than 3% on the news even as the Dow and other major indices lost ground. Rogers Communications shares fell during the week after posting quarterly results that were lower than expectations due to higher costs associated with increased smartphone subscriber additions. The company increased its dividend from $1.00 to $1.16, effective immediately.
Our recommendation
Corporate bonds still offer attractive yields
· Equities. Economic statistics are anticipated to be at their worst over the next several months and Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group suggests that in response to any negative market reactions investors should be selectively building equity positions in quality companies to position portfolios for the next cycle.
· 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. Although credit spreads have tightened significantly, they still remain wide, and we recommend investors following the laddered portfolio process add exposure to these sectors when rolling maturities at this time.
· Portfolio strategy. With volatility still at record highs, it’s important to review the impact on your portfolio allocations and ensure that your holdings remain appropriate for your goals and risk tolerance.
Where should an investor turn?
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
A tough week is ending in record setting fashion, as the D ow hit
levels unseen since 2002, and many overseas markets have reached their
low point for the decade. Japan has dropped to its lowest level in 27
years, Incredibly, most mutual funds have still failed to match these
dreadful returns. Interest rates are near record lows. Where should
an investor turn? At this point, why not seek out a second upinion,
and ensure you are using all of the products and solutions that can
help you to meet your goals?
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
for investors outgrowing their mutual funds.
A tough week is ending in record setting fashion, as the D ow hit
levels unseen since 2002, and many overseas markets have reached their
low point for the decade. Japan has dropped to its lowest level in 27
years, Incredibly, most mutual funds have still failed to match these
dreadful returns. Interest rates are near record lows. Where should
an investor turn? At this point, why not seek out a second upinion,
and ensure you are using all of the products and solutions that can
help you to meet your goals?
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
Tuesday, February 17, 2009
Free copy of Gordon Pape's latest book.
Come in for a second opinion, or recommend someone who needs one, and receive a free copy of Gordon Pape's latest book.
Quantities are limited, so reply early.
Have the recent markets made you feel less confident about your investments?
If so, then maybe you need a Second Opinion
The recent market volatility has many individuals wondering if they have the right plan in place to meet their long-term financial goals. If you are among this group, then perhaps it’s time for a Second Opinion – one that puts You First.
If you answer ‘no’ or ‘I don’t know’ to three or more of the following eight statements, then perhaps it’s time to review your current investment portfolio with a qualified professional.
You have a financial plan that is current and specific to your individual needs.
You know how much money you will need in order to live the life you want when you retire.
You know what your rate of return was on your investments last year and the potential risks of your investments.
Your financial advisor has reviewed your portfolio with you within the past 3 months and has discussed the effect of recent market trends on your portfolio.
Your total financial solution is being looked after, including your estate, trust, protection and tax needs.
Your advisor offers the expertise of a team of professionals that specialize in areas beyond investing.
You understand how compensation is paid to your financial advisor.
You are getting the service and communication you need and deserve from your financial advisor.
Please call us today to arrange a complimentary, no obligation review of your portfolio. Putting your needs first to achieve your personal, financial goals is our commitment to you.
--------------------------------------------------------------------------------
• Investments • Financial Advice • Protection
• Estate & Succession Planning
This publication has been prepared by ScotiaMcLeod, a division of Scotia Capital Inc. (SCI), a member of CIPF. This publication is intended as a general source of information and should not be considered as personal investment, tax or pension advice. We are not tax advisors and we recommend that individuals consult with their professional tax advisor before taking any action based upon the information found in this publication. This publication and all the information, opinions and conclusions contained in it are protected by copyright. This report may not be reproduced in whole or in part, or referred to in any manner whatsoever, nor may the information, opinions, and conclusions contained in it be referred to without in each case the prior express consent of SCI. Scotiabank Group refers to The Bank of Nova Scotia and its domestic subsidiaries. ™ Trademarks of The Bank of Nova Scotia.
™ Trademark used under authorization and control of The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., member CIPF.
Quantities are limited, so reply early.
Have the recent markets made you feel less confident about your investments?
If so, then maybe you need a Second Opinion
The recent market volatility has many individuals wondering if they have the right plan in place to meet their long-term financial goals. If you are among this group, then perhaps it’s time for a Second Opinion – one that puts You First.
If you answer ‘no’ or ‘I don’t know’ to three or more of the following eight statements, then perhaps it’s time to review your current investment portfolio with a qualified professional.
You have a financial plan that is current and specific to your individual needs.
You know how much money you will need in order to live the life you want when you retire.
You know what your rate of return was on your investments last year and the potential risks of your investments.
Your financial advisor has reviewed your portfolio with you within the past 3 months and has discussed the effect of recent market trends on your portfolio.
Your total financial solution is being looked after, including your estate, trust, protection and tax needs.
Your advisor offers the expertise of a team of professionals that specialize in areas beyond investing.
You understand how compensation is paid to your financial advisor.
You are getting the service and communication you need and deserve from your financial advisor.
Please call us today to arrange a complimentary, no obligation review of your portfolio. Putting your needs first to achieve your personal, financial goals is our commitment to you.
--------------------------------------------------------------------------------
• Investments • Financial Advice • Protection
• Estate & Succession Planning
This publication has been prepared by ScotiaMcLeod, a division of Scotia Capital Inc. (SCI), a member of CIPF. This publication is intended as a general source of information and should not be considered as personal investment, tax or pension advice. We are not tax advisors and we recommend that individuals consult with their professional tax advisor before taking any action based upon the information found in this publication. This publication and all the information, opinions and conclusions contained in it are protected by copyright. This report may not be reproduced in whole or in part, or referred to in any manner whatsoever, nor may the information, opinions, and conclusions contained in it be referred to without in each case the prior express consent of SCI. Scotiabank Group refers to The Bank of Nova Scotia and its domestic subsidiaries. ™ Trademarks of The Bank of Nova Scotia.
™ Trademark used under authorization and control of The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., member CIPF.
Monday, February 16, 2009
Rebuild Your Portfolio With An Eye On The Future
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
Happy Family Day. With North American markets closed today, there is
still important economic news, as President Obama's stimulus plan has
made it through both the House and Senate. Now that this massive bill
is a reality, investors need to recognize a simple fact...there is no
quick fix. Things will improve, but it will take time. You need to
rebuild your portfolio, with an eye on the future. The time has come
for a second opinion, and for a limited time, if you book a review, I
will give you a free copy of Gordon Pape's new book ofnTax Free
Savings Accounts.
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
for investors outgrowing their mutual funds.
Happy Family Day. With North American markets closed today, there is
still important economic news, as President Obama's stimulus plan has
made it through both the House and Senate. Now that this massive bill
is a reality, investors need to recognize a simple fact...there is no
quick fix. Things will improve, but it will take time. You need to
rebuild your portfolio, with an eye on the future. The time has come
for a second opinion, and for a limited time, if you book a review, I
will give you a free copy of Gordon Pape's new book ofnTax Free
Savings Accounts.
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
Saturday, February 14, 2009
Weekly Newsletter
Market Watch
The big picture
Geithner plan met with yawn from Wall Street
On Tuesday, U.S. Treasury Secretary Tim Geithner unveiled the Obama administration's highly anticipated plan to fix the financial markets. The reception from Wall Street was lukewarm at best as analysts and investors alike were hoping for bolder measures and more details. Arguably the greatest disappointment in the plan, which many had the highest hopes for, was the creation of a so-called "bad bank" to buy troubled assets and get them off of bank balance sheets in the process. Secretary Geithner is now poised to discuss the plan at this weekend’s G-7 summit in Rome. No doubt much of the conversation amongst the legions of representatives from the world’s seven largest industrialized economies will be centred on the “buy American” clause in the stimulus package, which has sparked concerns over U.S. economic protectionism.
This week Bank of Canada (BoC) Governor Mark Carney said the central bank has plenty of flexibility to cut interest rates and expand liquidity operations if needed, possibly hinting at further rate cuts on March 3rd. Grilled by legislators on a parliamentary finance committee, Carney also defended his forecast for Canada's quick recovery from the current recession to growth of 3.8% next year, despite news that Canada has just recorded its first trade deficit in 32 years.
With falling commodity prices, lower interest rates and government stimulus packages approved, the major economies could begin to show signs of recovery by the end of this year. Speaking in an interview with France Culture radio on Saturday, European Central Bank Governing Council member Christian Noyer said, "…several factors make us think it's not unrealistic to imagine pulling out of recession by the end of the year."
The markets
U.S. manufacturing gets shot in arm
Considering the pace of plant closures, layoffs, bankruptcies and bailouts in recent months, it was significant news this week that computer chip giant Intel plans to invest $7 billion in U.S. manufacturing facilities over the next two years.
In a bid to compete with some of its more value-oriented peers, Starbucks announced on Monday that it is now selling discounted pairings of coffee and breakfast food in the U.S. for $3.95. Meanwhile here in Canada, even as many retailers are struggling with the impact of the economic downturn on consumer spending, Shoppers Drug Mart reported a 14.4 percent jump in quarterly profit on Thursday, and said it saw sales rising through 2009, despite economic headwinds.
Our recommendation
Consider moving off the sidelines
· Equities. Economic statistics are anticipated to be at their worst over the next several months and Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group suggests that in response to any negative market reactions investors should be selectively building equity positions in quality companies to position portfolios for the next cycle.
· 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. Although credit spreads have tightened significantly, they still remain wide, and we recommend investors following the laddered portfolio process add exposure to these sectors when rolling maturities at this time.
· Portfolio strategy. With volatility still at record highs, it’s important to review the impact on your portfolio allocations and ensure that your holdings remain appropriate for your goals and risk tolerance.
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.
The big picture
Geithner plan met with yawn from Wall Street
On Tuesday, U.S. Treasury Secretary Tim Geithner unveiled the Obama administration's highly anticipated plan to fix the financial markets. The reception from Wall Street was lukewarm at best as analysts and investors alike were hoping for bolder measures and more details. Arguably the greatest disappointment in the plan, which many had the highest hopes for, was the creation of a so-called "bad bank" to buy troubled assets and get them off of bank balance sheets in the process. Secretary Geithner is now poised to discuss the plan at this weekend’s G-7 summit in Rome. No doubt much of the conversation amongst the legions of representatives from the world’s seven largest industrialized economies will be centred on the “buy American” clause in the stimulus package, which has sparked concerns over U.S. economic protectionism.
This week Bank of Canada (BoC) Governor Mark Carney said the central bank has plenty of flexibility to cut interest rates and expand liquidity operations if needed, possibly hinting at further rate cuts on March 3rd. Grilled by legislators on a parliamentary finance committee, Carney also defended his forecast for Canada's quick recovery from the current recession to growth of 3.8% next year, despite news that Canada has just recorded its first trade deficit in 32 years.
With falling commodity prices, lower interest rates and government stimulus packages approved, the major economies could begin to show signs of recovery by the end of this year. Speaking in an interview with France Culture radio on Saturday, European Central Bank Governing Council member Christian Noyer said, "…several factors make us think it's not unrealistic to imagine pulling out of recession by the end of the year."
The markets
U.S. manufacturing gets shot in arm
Considering the pace of plant closures, layoffs, bankruptcies and bailouts in recent months, it was significant news this week that computer chip giant Intel plans to invest $7 billion in U.S. manufacturing facilities over the next two years.
In a bid to compete with some of its more value-oriented peers, Starbucks announced on Monday that it is now selling discounted pairings of coffee and breakfast food in the U.S. for $3.95. Meanwhile here in Canada, even as many retailers are struggling with the impact of the economic downturn on consumer spending, Shoppers Drug Mart reported a 14.4 percent jump in quarterly profit on Thursday, and said it saw sales rising through 2009, despite economic headwinds.
Our recommendation
Consider moving off the sidelines
· Equities. Economic statistics are anticipated to be at their worst over the next several months and Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group suggests that in response to any negative market reactions investors should be selectively building equity positions in quality companies to position portfolios for the next cycle.
· 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. Although credit spreads have tightened significantly, they still remain wide, and we recommend investors following the laddered portfolio process add exposure to these sectors when rolling maturities at this time.
· Portfolio strategy. With volatility still at record highs, it’s important to review the impact on your portfolio allocations and ensure that your holdings remain appropriate for your goals and risk tolerance.
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.
Friday, February 13, 2009
Second Opinions For Investors
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
Over the next few weeks, Scotiabank and ScotiaMcLeod are stepping up
their campaign around second opinions for investors. I think this is
an excellent initiative, and I encourage listeners to take advantage
of the offer. I think this is especially valuable to investors who
have accumulated mutual fund portfolios in two or more places, as
there may be real cost savings involved in consolidating these assets
at one firm.Your advisor is only able to give an accurate opinion if
they have all the facts, so comee prepared to discuss the whole
picture. Finally, a firm that offers the full range of investment,
and banking solutions is most likely to be able all of your needs .
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
for investors outgrowing their mutual funds.
Over the next few weeks, Scotiabank and ScotiaMcLeod are stepping up
their campaign around second opinions for investors. I think this is
an excellent initiative, and I encourage listeners to take advantage
of the offer. I think this is especially valuable to investors who
have accumulated mutual fund portfolios in two or more places, as
there may be real cost savings involved in consolidating these assets
at one firm.Your advisor is only able to give an accurate opinion if
they have all the facts, so comee prepared to discuss the whole
picture. Finally, a firm that offers the full range of investment,
and banking solutions is most likely to be able all of your needs .
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
Wednesday, February 11, 2009
Municipalities Want Share
Budget Causes Some Concern
Posted By JORDAN BAKER and LYNDA HILLMAN-RAPLEY Lakeshore Advance staff
Knowing what is in the federal budget, people want to know how it will benefit us, locally.
Lambton Kent Middlesex (LKM) MP Bev Shipley says the Conservative government is pumping billions of dollars into the Canadian economy in a way that will create jobs, stimulate spending and make a difference for our communities in LKM.
“A difference we will all see as we drive to work, take our kids to hockey practice, transport goods and services, and travel around the country,” he says
Lambton Shores Mayor Gord Minielly says they are already working on a shove-ready $22 million dollar Grand Bend sewer project that had been applied for previously. He said this is their first priority. In other infrastructure projects that could come under the new federal budget money is the downtown revitalization for all of the former communities in Lambton Shores and the Thedford arena.
“$500 million for municipalities under 100,000 people will disappear quickly,” he said of the new cash influx from this budget.
“The budget is fine as long as we get our fair share,” he said.
Shipley says part of this budget, crafted to provide a major shot in the arm to the Canadian economy, involves doubling infrastructure spending.
“It is a huge investment, the likes of which has not been seen in decades and decades. Infrastructure projects, such as building roads and bridges, improving water systems and others, will create thousands of jobs for Canadians, and will provide work for many different sectors of our economy.”
He says infrastructure spending is more than simply putting a shovel in someone's hand and saying "dig there." It's the first link in a long chain of job creation, stimulus, spending and re-invigorating the economy.
“Consider a local infrastructure project, like a new bridge, water or sewer line. The project requires workers: that means local jobs. The project also requires materials, like wood, steel and cement. These will typically be supplied from local dealers. It requires specialized labour, such as engineers, electricians, carpenters, welders; typically those who work in the community. The end result is jobs, more cash for the community and, subsequently, more money entering the local economy.”
Jeff Wareham,Wealth Advisor with ScotiaMcLeod says this economic downturn is a concern for him and many of his clients. He says one of the best things this government has offered is the $5,000 tax-free savings account. He said this is something everyone should take advantage of.
Of the budget, Wareham said he can see many people taking advantage of the home renovation rebate as more people are fixing up the homes they have and not upgrading to bigger homes. He says people can see the investment value in that.
What is scary, he says, is that people are not opening statements, ignoring their investments because they know they have gone down.
“This is the time people need to open those statements and re-balance what they have,” he says. “Look at other things, long term investments they may be more comfortable with.”
Wareham says this is the time people should sit down with their financial advisors and make appropriate decisions. He said his office is being flooded with people asking for a second opinion.
“People are trying to make sense of what they have, and want advise,” he says.
Huron views
Bluewater mayor Bill Dowson says a problem is though funding is coming, the municipality still needs to find money for these projects. He notes, "There are some strings attached. I hope [the federal government] uses common sense for those strings."
Most infrastructure funding programs are contingent on a one-third contribution from federal, provincial and municipal governments.
Dowson says roads and bridges may be a high priority for any federal infrastructure funds.
"We've put a lot of time and effort into sewage and water recently, but need to turn our focus back to roads and bridges."
Important for local governments to watch is the window of opportunity for this funding. Many of these funds must be accessed within two years. Municipalities have to act quickly to decide what projects they can apply for.
Dowson says the turn-around time for the municipality to make decisions is fairly short when it comes to the federal government's funding. He also notes though, it's not the time to make poor decisions in an effort to get money with no idea of where it should go.
"With this money available we need to step back and see what we can do with that. It can be hard to decide which is the right way to go. We need to make sure we're spending it wisely."
Dowson says it would also be nice if the money could be used to ease some of the tax for homeowners instead.
Ben Lobb, Huron-Bruce MP, “I think it’s the right time for a budget like this. It’s going to stimulate the economy and get Canadians back to work.”
The Conservatives are turning their spending inward, and Lobb said infrastructure spending will benefit all four pillars of the Huron-Bruce economy: agriculture, manufacturing, tourism and culture.
The budget will see $7 billion dollars put toward infrastructure projects, and Ontario is expected to receive about $4 billion in infrastructure funding.
“One of the key things for our riding is infrastructure,” Lobb said. “I am excited about Huron-Bruce and the possibilities.”
He also praised programs that would retrain those in the workforce as well as stay-at-home parents who are looking at new lines of work.
“I think it’s a fantastic idea,” Lobb said. “This is a great time to get retrained and get back into the workforce.”
Fulfilling an earlier election promise, the budget calls for $550 million to create an Agri-flex program that recognizes the diversity of Canada’s farming regions. Lobb said it was a long time coming.
“It is something the Canadian Federation of Agriculture endorsed and asked for, and was delivered,” Lobb said. “Each province in Canada has different agricultural needs.”
Other features of the budget that could benefit Huron-Bruce are $350 million for tourism, $2 billion in training and support for workers and $400 million in seniors' housing. Details of the spending are as of yet unknown.
As layoffs and closures continue, many people are reinventing their livelihoods, those from the manu industries that are seeing closures such as the auto industry, are looking at new prospects with retraining while this offers some comfort staffers at job action centres hope they are out having these people pursue something with interest and passion and then there's no job at the end of it. In the budget the government will provide $500 million over two years to extend EI income benefits for individuals participating in longer-term training.
To see the budget in full check out: www.budget.gc.ca
Article ID# 1417498
Posted By JORDAN BAKER and LYNDA HILLMAN-RAPLEY Lakeshore Advance staff
Knowing what is in the federal budget, people want to know how it will benefit us, locally.
Lambton Kent Middlesex (LKM) MP Bev Shipley says the Conservative government is pumping billions of dollars into the Canadian economy in a way that will create jobs, stimulate spending and make a difference for our communities in LKM.
“A difference we will all see as we drive to work, take our kids to hockey practice, transport goods and services, and travel around the country,” he says
Lambton Shores Mayor Gord Minielly says they are already working on a shove-ready $22 million dollar Grand Bend sewer project that had been applied for previously. He said this is their first priority. In other infrastructure projects that could come under the new federal budget money is the downtown revitalization for all of the former communities in Lambton Shores and the Thedford arena.
“$500 million for municipalities under 100,000 people will disappear quickly,” he said of the new cash influx from this budget.
“The budget is fine as long as we get our fair share,” he said.
Shipley says part of this budget, crafted to provide a major shot in the arm to the Canadian economy, involves doubling infrastructure spending.
“It is a huge investment, the likes of which has not been seen in decades and decades. Infrastructure projects, such as building roads and bridges, improving water systems and others, will create thousands of jobs for Canadians, and will provide work for many different sectors of our economy.”
He says infrastructure spending is more than simply putting a shovel in someone's hand and saying "dig there." It's the first link in a long chain of job creation, stimulus, spending and re-invigorating the economy.
“Consider a local infrastructure project, like a new bridge, water or sewer line. The project requires workers: that means local jobs. The project also requires materials, like wood, steel and cement. These will typically be supplied from local dealers. It requires specialized labour, such as engineers, electricians, carpenters, welders; typically those who work in the community. The end result is jobs, more cash for the community and, subsequently, more money entering the local economy.”
Jeff Wareham,Wealth Advisor with ScotiaMcLeod says this economic downturn is a concern for him and many of his clients. He says one of the best things this government has offered is the $5,000 tax-free savings account. He said this is something everyone should take advantage of.
Of the budget, Wareham said he can see many people taking advantage of the home renovation rebate as more people are fixing up the homes they have and not upgrading to bigger homes. He says people can see the investment value in that.
What is scary, he says, is that people are not opening statements, ignoring their investments because they know they have gone down.
“This is the time people need to open those statements and re-balance what they have,” he says. “Look at other things, long term investments they may be more comfortable with.”
Wareham says this is the time people should sit down with their financial advisors and make appropriate decisions. He said his office is being flooded with people asking for a second opinion.
“People are trying to make sense of what they have, and want advise,” he says.
Huron views
Bluewater mayor Bill Dowson says a problem is though funding is coming, the municipality still needs to find money for these projects. He notes, "There are some strings attached. I hope [the federal government] uses common sense for those strings."
Most infrastructure funding programs are contingent on a one-third contribution from federal, provincial and municipal governments.
Dowson says roads and bridges may be a high priority for any federal infrastructure funds.
"We've put a lot of time and effort into sewage and water recently, but need to turn our focus back to roads and bridges."
Important for local governments to watch is the window of opportunity for this funding. Many of these funds must be accessed within two years. Municipalities have to act quickly to decide what projects they can apply for.
Dowson says the turn-around time for the municipality to make decisions is fairly short when it comes to the federal government's funding. He also notes though, it's not the time to make poor decisions in an effort to get money with no idea of where it should go.
"With this money available we need to step back and see what we can do with that. It can be hard to decide which is the right way to go. We need to make sure we're spending it wisely."
Dowson says it would also be nice if the money could be used to ease some of the tax for homeowners instead.
Ben Lobb, Huron-Bruce MP, “I think it’s the right time for a budget like this. It’s going to stimulate the economy and get Canadians back to work.”
The Conservatives are turning their spending inward, and Lobb said infrastructure spending will benefit all four pillars of the Huron-Bruce economy: agriculture, manufacturing, tourism and culture.
The budget will see $7 billion dollars put toward infrastructure projects, and Ontario is expected to receive about $4 billion in infrastructure funding.
“One of the key things for our riding is infrastructure,” Lobb said. “I am excited about Huron-Bruce and the possibilities.”
He also praised programs that would retrain those in the workforce as well as stay-at-home parents who are looking at new lines of work.
“I think it’s a fantastic idea,” Lobb said. “This is a great time to get retrained and get back into the workforce.”
Fulfilling an earlier election promise, the budget calls for $550 million to create an Agri-flex program that recognizes the diversity of Canada’s farming regions. Lobb said it was a long time coming.
“It is something the Canadian Federation of Agriculture endorsed and asked for, and was delivered,” Lobb said. “Each province in Canada has different agricultural needs.”
Other features of the budget that could benefit Huron-Bruce are $350 million for tourism, $2 billion in training and support for workers and $400 million in seniors' housing. Details of the spending are as of yet unknown.
As layoffs and closures continue, many people are reinventing their livelihoods, those from the manu industries that are seeing closures such as the auto industry, are looking at new prospects with retraining while this offers some comfort staffers at job action centres hope they are out having these people pursue something with interest and passion and then there's no job at the end of it. In the budget the government will provide $500 million over two years to extend EI income benefits for individuals participating in longer-term training.
To see the budget in full check out: www.budget.gc.ca
Article ID# 1417498
Investing In The New Economy
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
Yesterday saw another 400 point drop on the US market, in response to
an unclear bailout plan by the new US treasury secretary. Investors
are justifiably nervous about the unclear role of government in the
market. This makes is critical to ensure your portfolio is properly
diversified, in the very likely case that there are unintended
consequences. This is the time for a second opinion, to ensure your
portfolio is structured appropriately for the new realities of the
market. You can position yourself for growth, while protecting the
money you still have. Let me show you how.
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
for investors outgrowing their mutual funds.
Yesterday saw another 400 point drop on the US market, in response to
an unclear bailout plan by the new US treasury secretary. Investors
are justifiably nervous about the unclear role of government in the
market. This makes is critical to ensure your portfolio is properly
diversified, in the very likely case that there are unintended
consequences. This is the time for a second opinion, to ensure your
portfolio is structured appropriately for the new realities of the
market. You can position yourself for growth, while protecting the
money you still have. Let me show you how.
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
Monday, February 9, 2009
Will I outlive my money?
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
I have been emphasizing the value of a second opinion. I have been
giving a lot of second opinions lately, and the most common question I
hear is "Will I outlive my money?" This is a tough question, but
frequently I find that the answer has not changed, but the solutions
have. Reducing the risk of outliving your money is dependent on
adopting a different mindset, and using a variety of investment
vehicles that balance safety and return. The time has come to get a
fresh perspective.
Do you want to discuss your alternatives?
Have you outgrown your mutual funds?
for investors outgrowing their mutual funds.
I have been emphasizing the value of a second opinion. I have been
giving a lot of second opinions lately, and the most common question I
hear is "Will I outlive my money?" This is a tough question, but
frequently I find that the answer has not changed, but the solutions
have. Reducing the risk of outliving your money is dependent on
adopting a different mindset, and using a variety of investment
vehicles that balance safety and return. The time has come to get a
fresh perspective.
Do you want to discuss your alternatives?
Have you outgrown your mutual funds?
Friday, February 6, 2009
Market Watch - Weekly Newsletter
Market Watch
The big picture
Surprise increase in pending home sales fuels optimism
The U.S. Treasury Department will be bringing back the seven-year note and doubling the number of its 30-year bond auctions to help finance a national deficit that some believe will exceed $2 trillion once President Obama’s US$900 billion-plus stimulus package is taken into account. On the bright side, a better-than-expected 6.3% increase in pending home sales provided a hint that the bottom of the U.S. housing market may be closer.
This week the Bank of England cut its key lending rate to 1.00% – the lowest since the bank was founded in 1694. However, the European Central Bank (ECB) announced that it would keep its benchmark rate unchanged at 2.00%. The pause was the ECB's first since October, when its key rate was 4.25%. The ECB, which is the central bank for the 16 countries that use the euro, has been more cautious in cutting rates given the risk associated with stoking inflation by lowering borrowing costs for businesses and consumers – the ECB's sole mandate is to “maintain the euro's purchasing power and thus price stability in the euro area.”
On Friday, Statistics Canada said Canada lost a record 129,000 jobs last month – well ahead of the consensus expectation of 40,000 – as the unemployment rate surged more than half a point to 7.2 per cent. Factories let go 101,000 people last month across the country, as many of the layoff notices announced in recent months were put into effect.
The markets
How would you like to pay for that: Visa or MasterCard?
Shares of MasterCard Inc. and Visa Inc. bucked weakness in the broader U.S. financial sector this week as both companies reported earnings that lacked the troubling trends common in other areas of the U.S. financial services sector. Their exposure to the credit crunch has been somewhat limited given that they make money from processing and transaction fees they charge bank customers.
Meanwhile, it’s clear that retailers are getting increasingly creative in their attempts to woo cash-strapped American consumers. Hyundai recently told new car buyers in the U.S. that they could simply return their cars if they lost their jobs. On Tuesday, Denny's gave away thousands of free Grand Slam breakfasts in a bid to showcase its value-friendly meal options. One of the biggest winners in the midst of the rebirth of thrift remains McDonald’s. The company just announced plans to open 1,000 new stores in 2009.
Our recommendation
Take advantage of compelling opportunities
• Equities. Economic statistics are anticipated to be at their worst over the next several months and Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group suggests that in response to any negative market reactions investors should be selectively building equity positions in quality companies to position portfolios for the next cycle.
• Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, says while the government bond markets in the U.S. and Canada remain volatile, we continue to prefer provincial and municipal bonds, as well as high quality corporate names.
• Portfolio strategy. With volatility still at record highs, it’s important to review the impact on your portfolio allocations and ensure that your holdings remain appropriate for your goals and risk tolerance.
The big picture
Surprise increase in pending home sales fuels optimism
The U.S. Treasury Department will be bringing back the seven-year note and doubling the number of its 30-year bond auctions to help finance a national deficit that some believe will exceed $2 trillion once President Obama’s US$900 billion-plus stimulus package is taken into account. On the bright side, a better-than-expected 6.3% increase in pending home sales provided a hint that the bottom of the U.S. housing market may be closer.
This week the Bank of England cut its key lending rate to 1.00% – the lowest since the bank was founded in 1694. However, the European Central Bank (ECB) announced that it would keep its benchmark rate unchanged at 2.00%. The pause was the ECB's first since October, when its key rate was 4.25%. The ECB, which is the central bank for the 16 countries that use the euro, has been more cautious in cutting rates given the risk associated with stoking inflation by lowering borrowing costs for businesses and consumers – the ECB's sole mandate is to “maintain the euro's purchasing power and thus price stability in the euro area.”
On Friday, Statistics Canada said Canada lost a record 129,000 jobs last month – well ahead of the consensus expectation of 40,000 – as the unemployment rate surged more than half a point to 7.2 per cent. Factories let go 101,000 people last month across the country, as many of the layoff notices announced in recent months were put into effect.
The markets
How would you like to pay for that: Visa or MasterCard?
Shares of MasterCard Inc. and Visa Inc. bucked weakness in the broader U.S. financial sector this week as both companies reported earnings that lacked the troubling trends common in other areas of the U.S. financial services sector. Their exposure to the credit crunch has been somewhat limited given that they make money from processing and transaction fees they charge bank customers.
Meanwhile, it’s clear that retailers are getting increasingly creative in their attempts to woo cash-strapped American consumers. Hyundai recently told new car buyers in the U.S. that they could simply return their cars if they lost their jobs. On Tuesday, Denny's gave away thousands of free Grand Slam breakfasts in a bid to showcase its value-friendly meal options. One of the biggest winners in the midst of the rebirth of thrift remains McDonald’s. The company just announced plans to open 1,000 new stores in 2009.
Our recommendation
Take advantage of compelling opportunities
• Equities. Economic statistics are anticipated to be at their worst over the next several months and Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group suggests that in response to any negative market reactions investors should be selectively building equity positions in quality companies to position portfolios for the next cycle.
• Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, says while the government bond markets in the U.S. and Canada remain volatile, we continue to prefer provincial and municipal bonds, as well as high quality corporate names.
• Portfolio strategy. With volatility still at record highs, it’s important to review the impact on your portfolio allocations and ensure that your holdings remain appropriate for your goals and risk tolerance.
Right mix of assets and products
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
What concerns me is the number of people I encounter who are not opening their statements. I think this is a huge mistake. The market will recover, but it is critical to ensure you have the right mix of assets and products to achieve your goals. Day after day, I am seeing investors seeking a second opinion. I recently saw a study indicating
81 percent of investors with over 1 million in assets plan to seek a second opinion, and quite frankly, they should. Market returns have fundamentally changed many investors' financial situations, and it makes sense to seek a fresh perspective.
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,
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
www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260
What concerns me is the number of people I encounter who are not opening their statements. I think this is a huge mistake. The market will recover, but it is critical to ensure you have the right mix of assets and products to achieve your goals. Day after day, I am seeing investors seeking a second opinion. I recently saw a study indicating
81 percent of investors with over 1 million in assets plan to seek a second opinion, and quite frankly, they should. Market returns have fundamentally changed many investors' financial situations, and it makes sense to seek a fresh perspective.
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,
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
www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260
Wednesday, February 4, 2009
A Second Opinion Can be Invaluable
In tough economic times, a second opinion can be invaluable. In
rising markets, investors may not ask many questions. Even if your
investments are significantly underperforming, you may not be
concerned. Many fund companies have thrived for years, while few of
their funds achieve high levels of performance. The ironic part is,
you may have more questions when fund and portfolio managers are
actually doing their job. A study released today shows that over 70
percent of active fund managers actually beat the index last quarter,
an anomaly that had not happened for several years. These stats do
not change the long term reality that very few funds actually beat the
index, over the long term, but it does mean you should look for
qualified advice before making any changes.
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
rising markets, investors may not ask many questions. Even if your
investments are significantly underperforming, you may not be
concerned. Many fund companies have thrived for years, while few of
their funds achieve high levels of performance. The ironic part is,
you may have more questions when fund and portfolio managers are
actually doing their job. A study released today shows that over 70
percent of active fund managers actually beat the index last quarter,
an anomaly that had not happened for several years. These stats do
not change the long term reality that very few funds actually beat the
index, over the long term, but it does mean you should look for
qualified advice before making any changes.
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
Tuesday, February 3, 2009
Weekly Insights The big picture : Something for everyone in Conservative budget
Market Watch
The big picture
Something for everyone in Conservative budget
Last Tuesday, Canadian Finance Minister Jim Flaherty unveiled the first Canadian federal budget to include deficit spending in more than a decade. The budget included up to $12 billion for infrastructure over the next two years, income tax relief for individuals and small businesses, a one-time 25% reduction in the minimum RRIF withdrawal for 2008, a $1,000 increase in the senior age credit, and even a new home renovation tax credit. All told, the Conservative government announced 109 separate spending initiatives, spreading $22.7 billion worth of stimulus across virtually every segment of society.
Markets were buoyed this week by rumours that the U.S. Treasury will soon announce the creation of a “bad bank” to buy troubled assets from the nation’s otherwise good banks. Meanwhile, the House of Representatives passed President Obama’s $819 billion stimulus bill on Wednesday despite the fact that Obama was unable to drum up support from Republicans. The bill is on its way to the Senate, where Republicans are in a position to demand revisions. Meanwhile, the U.S. Federal Reserve Board signalled that it will keep using unconventional tools to cushion the fallout from deteriorating economic conditions, including keeping the targeted range for the federal funds rate between zero and 0.25 per for quite “some time.”
Business and political leaders converged in Davos, Switzerland this week for the four-day World Economic Forum. The mood was more subdued than usual as business confidence has continued to wane globally.
The markets
Pfizer bucks credit trend
Pfizer, the world’s largest drug maker, is about to get a lot bigger after announcing the $68 billion acquisition of Wyeth. The deal will add successful drugs Effexor and Prevnar to a product portfolio that already generates more than $1 billion in annual sales. Arguably of equal significance, particularly given the current credit environment, Pfizer was able to fund the deal with a combination of shares, cash on hand, and loans totalling US$22.5 billion from a consortium of banks.
Fast-food giant McDonald's said Monday its 2008 net profit soared 80% percent from a year ago, lifted by growing demand from consumers seeking low-cost meals in a deepening global recession. In contrast, Starbucks announced its earnings on Wednesday and said that it would slash 6,700 jobs and close an additional 300 stores — including 200 in the U.S. — as the company continues to struggle during the recession.
The share price of British bank Barclays soared on Monday, closing up 73%, after the group insisted it did not need a government bailout. Just last week, the shares had plunged on rumours that the company might be nationalized.
Our recommendation
Consider moving off the sidelines
· Equities. Equity markets tend to rebound ahead of the general economy. During periods of market weakness, consider moving at least some cash off the sidelines. Paul Danesi, Director, Portfolio Advisory Group, suggests looking at exchange traded equity funds that offer rich dividend yields and longer-term capital appreciation potential.
· 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. With volatility still at record highs, it’s important to review the impact on your portfolio allocations and ensure that your holdings remain appropriate for your goals and risk tolerance.
The month in review
January: a month of extremes
The year got off to a dynamic start with central banks and governments continuing their aggressive measures to stabilize economic conditions, and markets continuing to demonstrate remarkable volatility. On the upside, a summit of G10 central bankers and Canada’s own chief central banker affirmed that a return to economic growth is expected in 2010.
What follows is a list of what helped move markets throughout the month.
Interest rates on the decline
Following in the footsteps of the U.S. Federal Reserve, the central banks in Canada and England moved their target lending rates down to record lows in January. The Bank of Canada reduced rates to an all-time low of 1%, and the Bank of England cut its key lending rate to 1.5%, which is the lowest in its 315-year history.
Deficits on the rise
In his inauguration speech, President Barack Obama outlined sweeping plans to invest in roads, bridges, electric grids, digital lines, and alternative energy. It is believed that these plans will contribute to a staggering $1.2 trillion budget deficit in 2009. Meanwhile, it has been estimated that Canada will face a deficit in the range of $80 billion over the next five years.
Volatility the reality
Volatility continued at a record pace in January, with the price of oil routinely whipsawing several dollars per barrel in a single trading session, and the Canadian dollar also experiencing daily swings of unprecedented proportions. Both the commodity and the currency trended lower for the month. Equity markets saw a sort of “mini banking crises” this month as concerns about the solvency of U.S. banking giant Citigroup sent the shares—which had once traded in the $60 range—to below the $5 per share. Shares of Bank of America were also caught in the undertow. The following week, similar concerns sent U.K. banking concerns Barclays and Lloyds sharply lower.
Autos get relief
The USD$17 billion North American auto bailout in December was followed this month by a British bailout plan worth USD$3.25 billion and news that the Italian government is contemplating a $7.9 billion plan. Earlier in the month, Toyota announced the most drastic suspension of production in its history, and Chrysler revealed that it had struck a deal with Fiat for a 35% ownership stake in exchange for the Italian firm sharing its distribution channels and technology.
Positive outlook for 2010
No one is calling for a rapid economic recovery, and it’s all but certain that corporate earnings will continue to fall and unemployment will continue to rise in 2009. However, speaking on behalf of a meeting of G10 central bankers this month, European Central Bank President Jean-Claude Trichet said the group expects a "significant pick up" in 2010. Also this month, Bank of Canada Governor Mark Carney reiterated the bank’s aggressive forecast of 3.8% economic growth for Canada in 2010.
The big picture
Something for everyone in Conservative budget
Last Tuesday, Canadian Finance Minister Jim Flaherty unveiled the first Canadian federal budget to include deficit spending in more than a decade. The budget included up to $12 billion for infrastructure over the next two years, income tax relief for individuals and small businesses, a one-time 25% reduction in the minimum RRIF withdrawal for 2008, a $1,000 increase in the senior age credit, and even a new home renovation tax credit. All told, the Conservative government announced 109 separate spending initiatives, spreading $22.7 billion worth of stimulus across virtually every segment of society.
Markets were buoyed this week by rumours that the U.S. Treasury will soon announce the creation of a “bad bank” to buy troubled assets from the nation’s otherwise good banks. Meanwhile, the House of Representatives passed President Obama’s $819 billion stimulus bill on Wednesday despite the fact that Obama was unable to drum up support from Republicans. The bill is on its way to the Senate, where Republicans are in a position to demand revisions. Meanwhile, the U.S. Federal Reserve Board signalled that it will keep using unconventional tools to cushion the fallout from deteriorating economic conditions, including keeping the targeted range for the federal funds rate between zero and 0.25 per for quite “some time.”
Business and political leaders converged in Davos, Switzerland this week for the four-day World Economic Forum. The mood was more subdued than usual as business confidence has continued to wane globally.
The markets
Pfizer bucks credit trend
Pfizer, the world’s largest drug maker, is about to get a lot bigger after announcing the $68 billion acquisition of Wyeth. The deal will add successful drugs Effexor and Prevnar to a product portfolio that already generates more than $1 billion in annual sales. Arguably of equal significance, particularly given the current credit environment, Pfizer was able to fund the deal with a combination of shares, cash on hand, and loans totalling US$22.5 billion from a consortium of banks.
Fast-food giant McDonald's said Monday its 2008 net profit soared 80% percent from a year ago, lifted by growing demand from consumers seeking low-cost meals in a deepening global recession. In contrast, Starbucks announced its earnings on Wednesday and said that it would slash 6,700 jobs and close an additional 300 stores — including 200 in the U.S. — as the company continues to struggle during the recession.
The share price of British bank Barclays soared on Monday, closing up 73%, after the group insisted it did not need a government bailout. Just last week, the shares had plunged on rumours that the company might be nationalized.
Our recommendation
Consider moving off the sidelines
· Equities. Equity markets tend to rebound ahead of the general economy. During periods of market weakness, consider moving at least some cash off the sidelines. Paul Danesi, Director, Portfolio Advisory Group, suggests looking at exchange traded equity funds that offer rich dividend yields and longer-term capital appreciation potential.
· 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. With volatility still at record highs, it’s important to review the impact on your portfolio allocations and ensure that your holdings remain appropriate for your goals and risk tolerance.
The month in review
January: a month of extremes
The year got off to a dynamic start with central banks and governments continuing their aggressive measures to stabilize economic conditions, and markets continuing to demonstrate remarkable volatility. On the upside, a summit of G10 central bankers and Canada’s own chief central banker affirmed that a return to economic growth is expected in 2010.
What follows is a list of what helped move markets throughout the month.
Interest rates on the decline
Following in the footsteps of the U.S. Federal Reserve, the central banks in Canada and England moved their target lending rates down to record lows in January. The Bank of Canada reduced rates to an all-time low of 1%, and the Bank of England cut its key lending rate to 1.5%, which is the lowest in its 315-year history.
Deficits on the rise
In his inauguration speech, President Barack Obama outlined sweeping plans to invest in roads, bridges, electric grids, digital lines, and alternative energy. It is believed that these plans will contribute to a staggering $1.2 trillion budget deficit in 2009. Meanwhile, it has been estimated that Canada will face a deficit in the range of $80 billion over the next five years.
Volatility the reality
Volatility continued at a record pace in January, with the price of oil routinely whipsawing several dollars per barrel in a single trading session, and the Canadian dollar also experiencing daily swings of unprecedented proportions. Both the commodity and the currency trended lower for the month. Equity markets saw a sort of “mini banking crises” this month as concerns about the solvency of U.S. banking giant Citigroup sent the shares—which had once traded in the $60 range—to below the $5 per share. Shares of Bank of America were also caught in the undertow. The following week, similar concerns sent U.K. banking concerns Barclays and Lloyds sharply lower.
Autos get relief
The USD$17 billion North American auto bailout in December was followed this month by a British bailout plan worth USD$3.25 billion and news that the Italian government is contemplating a $7.9 billion plan. Earlier in the month, Toyota announced the most drastic suspension of production in its history, and Chrysler revealed that it had struck a deal with Fiat for a 35% ownership stake in exchange for the Italian firm sharing its distribution channels and technology.
Positive outlook for 2010
No one is calling for a rapid economic recovery, and it’s all but certain that corporate earnings will continue to fall and unemployment will continue to rise in 2009. However, speaking on behalf of a meeting of G10 central bankers this month, European Central Bank President Jean-Claude Trichet said the group expects a "significant pick up" in 2010. Also this month, Bank of Canada Governor Mark Carney reiterated the bank’s aggressive forecast of 3.8% economic growth for Canada in 2010.
Monday, February 2, 2009
Great Opportunities to Rebuild Your Porfolio
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts
for investors outgrowing their mutual funds.
January of 2009 certainly followed the record setting example of
2008...the US markets suffered through their worst January ever. It
is understandable to be disheartened by the state of the market,and
the economy, but there are many great opportunities to rebuild your
porfolio. Many blue chip companies are offering outstanding dividend
yields on their common and preferred shares, and these may provide a
growing source of income for a conservative investor. Corporate bonds
are even more interesting, as the credit crisis has pushed their
yields dramatically. Major Canadian banks are paying yields of well
over 7 percent on some durations of bonds, and with the guiding hand
of an advisor, these could be a key part of rebuilding your portfolio.
When credit conditions normalize, you will not only continue to
receive this great yield, you may earn significant capital gains, and
every investor could use income and capital gains after the past few
months.
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
for investors outgrowing their mutual funds.
January of 2009 certainly followed the record setting example of
2008...the US markets suffered through their worst January ever. It
is understandable to be disheartened by the state of the market,and
the economy, but there are many great opportunities to rebuild your
porfolio. Many blue chip companies are offering outstanding dividend
yields on their common and preferred shares, and these may provide a
growing source of income for a conservative investor. Corporate bonds
are even more interesting, as the credit crisis has pushed their
yields dramatically. Major Canadian banks are paying yields of well
over 7 percent on some durations of bonds, and with the guiding hand
of an advisor, these could be a key part of rebuilding your portfolio.
When credit conditions normalize, you will not only continue to
receive this great yield, you may earn significant capital gains, and
every investor could use income and capital gains after the past few
months.
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
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