Rebalancing to include safety and income

For months, I have been discussing the safety provided by bonds and preferred shares, With the rally in the markets over the last few weeks, it is an ideal time to consider rebalancing your portfolio to include safety, and income. If the market continues to rally, you will still benefit as investor confidence returns. If the market sells off over the spring, you will conserve capital, and receive income while you wait for markets to stabilize. I believe we will see some pullback from the recent rally over the next few weeks, and this is an excellent time to seek the safety of bonds and preferred shares. 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

Are You Concerned About The Security Of Your Pension?

For years, the gold standard of financial security has been the defined benefit pension plan. Many current and future retirees depend on the guaranteed income stream for financial comfort. Recently, the media has been full of articles questioning the unthinkable, the solvency of these plans. If you are concerned about the security of your pension, tune in this morning at 10:30, as McArthur interviews Wealthy Boomer author Jonathan Chevreau, or visit my blog on AM 980's
web site for information on the subject. Regardless, you really
should take a look at your retirement income security.

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

Retirement Alternatives

Day after day, more articles appear questioning the solvency of
pension plans Underfunding Article, Pension Killer Article. This is a frightening subject
to retirees counting on defined benefit pension plans. Last week on
my Saturday show, I discussed safe income in a dangerous world. This
week, I am joined by Manulife VP Brian Mills, and we will discuss
emerging alternatives for investors seeking income for life. Tune in
tomorrow for more information on securing your retirement income.

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

Financial Plan

Over the last few months, I have been emphasizing the importance of having a well constructed financial plan. The premise is simple...if you don't know where you are going, how can you get there? ScotiaMcLeod offers detailed, written plans, We look at your investment, your retirement, your business, your taxation, yourntrust, and your estate needs. Starting today, you have the option of purchasing a certificate for one of these plans, through AM 980's half price Wednesday's promotion. Come to AM 980's web site today to sign up for this promotion.

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

Preparing for bear market rallies...

After six straight weeks to the positive, it would be surprising if the markets made it seven in a row. Regardless, the recent rally has not come close to offsetting the losses of 2008, but it does present the opportunity to sit down with your advisor, and consider rebalancing your portfolio. Rallies at the end of bear markets may be dramatic, and it is a great time to sell positions that are less likely to do well in a recovering market, and buy investments that will respond well to the economy when it recovers. Have you had this type of discussion with your advisor? If not, give me a call, and I will offer you a second opinion.

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

Weekly Newsletter

Market Watch



The big picture

Cautious optimism – rate of economic contraction seen slowing


On Tuesday, U.S. Federal Reserve (the Fed) Chairman Ben Bernanke expressed confidence that the pace of economic decline will slow in the coming months. The Fed backed up this statement with a report detailing weak economic activity for March and early April, and predicting further economic contraction, albeit at a slower pace. To help alleviate some investor concerns, the Obama administration announced plans to disclose the results of “stress tests” that were applied recently to 19 top U.S. banks.



The Bank of Canada’s (BoC’s) quarterly Business Outlook Survey echoed the Fed’s cautious optimism, reporting that while Canadian business leaders see continued economic weakness, they are now slightly less pessimistic than three months ago. The BoC will make its next interest rate announcement on April 21.



U.S. consumer prices unexpectedly slid into deflationary territory last month, marking their first full-year decline in more than half a century and underscoring the continuing weakness of the U.S. economy. On Friday, Statistics Canada reported that the annual inflation rate dipped to 1.2 per cent in March, almost completely reversing the previous month's unexpected jump. Meanwhile, European central bankers publicly hinted at the need for further interest rate cuts in order to support prices.



The markets

Earnings surprise on the upside



Goldman Sachs reported a surprising 20% jump in profits on Monday, and said it will use proceeds from a $5-billion stock sale to help repay the government bailout money it received last fall. Intel also reported higher-than-expected earnings, but its shares slipped 5% after the world’s leading chipmaker refused to provide guidance on future earnings expectations. Meanwhile, better-than-forecast results out of Citigroup and General Electric were announced on Friday to a mixed response by investors.



Our recommendation
Be selective in building equity portfolios

· Equities. Increasing evidence suggests the market may be approaching fair value and is vulnerable to a pullback. Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group believes the current strength in equities is merely a rally in the context of an ongoing bear market as opposed to the beginning of the next bull market. Investors should take profits in long trading positions or holdings that have become overvalued or do not represent long term, core holdings. In the event of an inevitable pull-back, continue to accumulate equity positions in anticipation of the next bull market for stocks



· 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 that 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.















Jeff Wareham
Wealth Advisor

ScotiaMcLeod
148 Fullarton Street,
Suite 1801
London, ON
N6A 5P3

Tel: (519) 660-3260
Toll Free: (800) 265-1242
Fax: (519) 660-3208
Email Jeff
Visit my website

Greg Holland
Tel: (519) 660-3239
Email Greg

Ann Martin
Tel: (519) 660-3260
Email Ann


















Unsubscribe



Privacy Policy and Legal Disclaimer
TM Trademarks used under authorization and control of The Bank of Nova Scotia.
ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF

This publication is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any of the securities mentioned in it. The author is an employee of ScotiaMcLeod, a division of Scotia Capital Inc. ("SCI"), but the data selection, analysis and views expressed herein are solely those of the author and not those of SCI. The author has taken all usual and reasonable precautions to determine that the information contained in this publication has been obtained from sources believed to be reliable and that the procedures used to summarize and analyze such information are based on approved practices and principles in the investment industry. However, the market forces underlying investment value are subject to sudden and dramatic changes and data availability varies from one moment to the next. Consequently, neither the author nor SCI can make any warranty as to the accuracy or completeness of information, analysis or views contained in this publication or their usefulness or suitability in any particular circumstance. You should not undertake any investment or portfolio assessment or other transaction on the basis of this publication, but should first consult your investment advisor, who can assess all relevant particulars of any proposed investment or transaction. SCI and the author accept no liability of whatsoever kind for any damages or losses incurred by you as a result of reliance upon or use of this publication in contravention of this notice. All performance data represents past performance and is not indicative of future performance. Scotia Capital Inc. and its affiliates collectively beneficially own in excess of 1% of one or more classes of the issued and outstanding equity securities of Royal Bank. Within the last 12 months, Scotia Capital Inc. and/or its affiliates have undertaken an underwriting liability with respect to equity or debt securities of, or have provided advice for a fee with respect to Royal Bank. TM Trademark used under authorization and control of The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF.

Add income generating alternatives to your portfolio

Day after day, I am seeing investors looking for a second opinion on their financial situation. Every situation is different, but one consistent theme is the need for secure income. Many investors are surprised when I show them that this is a fantastic time to add income generating alternatives to their portfolios. Bonds, preferred shares, guaranteed withdrawal benefit plans, and annuities are all able to add income and safety to your portfolio. Building these elements into your plan takes expertise, but it really is a fabulous time to rebuild your wealth, and secure your future cashflow.

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

Investors are being driven to consider traditional refuges..

Interest rates and GICs have reached record lows, and this has a dramatic impact on investors who depend on GIC interest for income. Last Saturday, I discussed alternatives for secure income in a dangerous world. If you are interested in your options, come to my web site on AM 980, www.beyondfunds.ca, and review the alternatives I outlined. With the guiding hand of an advisor, you may achieve significantly better income, greater liquidity, and the potential for capital gains.

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

Secure Income in a Dangerous World

With the turmoil afflicting global financial markets, investors are
being driven to consider traditional refuges, like guaranteed
investment certificates, money market funds, and government bonds. In
seeking safety, they face the reality that interest rates on truly
safe investments are minimal. What options do they have in a world
where safe returns are approaching zero?
Day after day, I hear from investors seeking yield on their money,
without the risk of the market. This struggle is not new.
Traditionally, little risk free return has been available beyond the
rate of inflation, especially in taxable accounts. In the heady
interest rate environments of the eighties, double digit interest
rates were offset by similar inflation levels. The nineties, and
pre-crash days of this decade, saw both inflation, and interest rates,
decline in a fairly uniform fashion. However, the lack of any real
return never seemed so bleak as it does in a world with near zero
inflation, and miniscule interest rates on guaranteed investments.
Why is it different today?
Quite simply, "real" rate of return is more of a concept for advisors
than investors. In theory, real return only occurs when the after tax
income exceeds inflation. In practice, getting twelve percent, and
losing eight percent to inflation results in cashflow, as the impact
of inflation occurs in the future. If tax rates were 33%, the "real"
return is zero. If interest rates and inflation both drop in half, in
the theoretical world of "real" return, income levels have not
changed. If an investor had invested a million dollars, and their
income dropped from 120,000 to 60,000 per year, they would not agree
that their "real" income was unchanged, regardless of theory.
This drop in cashflow from safer investments has driven investment
behaviour in past. The explosion in mutual funds during the nineties
was driven, in part, by "GIC Refugees," a group accustomed to high
guaranteed yield, who chased equity and bond funds when guaranteed
rates fell. This worked out well during the bull market of the
nineties; in fact, it may have contributed to it. The decade long
bear market has shown the risk of using equities to generate cashflow.
Many portfolios have been decimated by systematic withdrawal plans
over the past few years.
The situation sounds bleak. Many investors are surprised to discover
that this is a fantastic time to find relatively safe income. A
number of options have emerged, which offer significantly higher
relative yields than the "safe' investments, which are guaranteed to
erode capital, given their near zero real returns.
First, the world of bonds has changed dramatically. Only a couple
years ago, little extra yield could be found with even a weaker
investment grade bond. After commissions, it was pretty difficult to
make a case for buying an investment grade bond over a guaranteed
certificate. Spreads of less than half a percent over government
bonds were very common. In a world where there was no real yield
after inflation, investors actually chose to take on corporate risk
for very little extra return. As I said, this world has changed.
After shocks to the system like the collapse of Lehman, debt has been
repriced. Reality is that near record spreads exist between bonds and
guaranteed certificates, and an investor may achieve several extra
percent by simply buying the bonds of their bank, instead of its
guaranteed certificates. Tier one and two capital of Canadian banks
has offered yields nearing double digits, while GIC rates have hovered
near two or three percent. Many investors are choosing managed money,
instead of trying to select individual bonds. Corporate bond mutual
funds are actually able to deliver extra yield, even after their
management expenses.
The outstanding yield on Canadian bank bonds is not the only
opportunity presented by the rising cost of their capital.
Traditionally, Canada's big banks have paid low dividend yields on
perpetual preferred shares. These shares would offer yields near the
level of thirty year Canada bonds, and were sold to security concious
investors who liked the tax treatment of their dividends. This
allowed Canadian banks to broaden their equity based using what was
essentially debt like equity. This easy and profitable leverage has
become much more expensive, to the benefit of security concious
investors. Recently, the trend in preferred shares has been to issue
five year rate reset shares. The most recent series have offered
yields of over six percent, with a reset, at the institutions' option,
to over four percent above the yield on five year Canada bonds. These
yields are spectacular, especially with the tax treatment afforded to
dividends. Preferred shares should not be bought without forethought,
or advice. The perpetual shares issued over the past few years have
generally fallen in value, particularly as the credit market has
seized up. Normally, falling interest rates should have driven up the
price of the existing shares, but the loss of confidence in global
financial institutions has kept their price depressed, and the yields
are pretty spectacular on some series of financial preferred shares.
The risk is that interest rates may rise, and keep prices depressed,
even as credit conditions normalize.
Another emerging option is the use of guaranteed withdrawal benefit
plans, or GWBs. These are issued by insurance companies, and are
essentially a mutual fund with an annuity guarantee attached. Most
offer exposure to top mutual fund families, allowing you to purchase
equities, albeit frequently at high management costs. The annuity
guarantee typically kicks in at age sixty-five, and each version
offers a guaranteed growth rate prior to retirement, and a fixed
income for life. The nuances are complex, but the premise is simple;
you put in a lump sum, and receive an income for life, guaranteed.
Finally, the traditional annuity option seems to be emerging from the
shadows. Many advisors are using a combination of an insurance
contract and an annuity to generate guaranteed, lifetime income. This
option is intriguing, but should not be considered lightly, as it is a
lifetime commitment. It works best in taxable accounts, as it
capitalizes on the highly tax friendly treatment of prescribed
annuities.
There are numerous options, and a security concious investor should
seek the help of a professional advisor before choosing any of these
solutions. In general, the best solution will involve two or more of
these options. The key is that interest rates are at record low
levels, but an investor and his advisor may construct a tax efficient,
stable, and relatively secure stream of income, even in this dangerous
financial world.

Time to Revisit Your Investments

Global markets continued to rally last week. The dramatic recovery we have seen over the last five weeks may make it less frightening to review your statement. It also means that it is time to revisit your investments, and ensure you are appropriately positioned for the future. We will likely see further market pull backs as traders take short term profits, but these should be opportunities to rebalance for your long term goals. Bull markets last much longer than bear markets, and it really makes sense to ensure your portfolio is prepared for the eventual recovery.

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

Weekly Newsletter

Market Watch



The big picture

How low will they go?



There is room for the European Central Bank (ECB) to cut rates again, but 1.00% is the lowest it should go, said Austrian central banker Ewald Nowotny on Monday in an interview with Reuters. However, the very next day, Georgios Provopoulos of the Bank of Greece told Bloomberg News that both the IMF and OECD are expecting a deeper recession in Europe than current projections from the ECB, and that he does not see 1.00% as a rate “threshold” that shouldn’t be crossed.



The Reserve Bank of Australia—previously a holdout in the global rate-cutting derby—finally cut its cash rate by a quarter point to 3.00% on Tuesday. Closer to home, the latest Federal Open Market Committee meeting minutes were released Wednesday, and were widely interpreted as indicating that the Fed will continue to expand its balance sheet, possibly by extending the plan announced last month to purchase $300 billion in bonds.



China is likely to emerge from its economic slump this year, the World Bank said Tuesday. “A recovery in China—fuelled largely by the country's huge economic stimulus package—is likely to begin this year and take full hold in 2010, potentially contributing to the region's stabilization, and perhaps recovery,” the bank said in a statement.



The markets

GM pursues innovation as bankruptcy looms



Markets gave up some of the record gains from last month as the first quarter earnings season kicked off with aluminum giant Alcoa announcing a hefty quarterly loss of US$497 million. In other market news, Pulte Homes said it is buying Centex in a deal that includes USD$1.3-billion in stock and USD$1.8-billion in debt to create America’s largest home-building company.



General Motors said it is teaming up with Segway, maker of the upright, self-balancing scooters, to build a new type of two-wheeled vehicle designed to move easily through congested urban streets. The machine, which GM says it aims to develop by 2012, would run on batteries. Even as GM works to reinvent itself, a source close to the company said on Tuesday that preparations for a possible bankruptcy filing have become "intense and earnest."



Our recommendation
Corporate bonds still offer value



· 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.



.











Jeff Wareham
Wealth Advisor

ScotiaMcLeod
148 Fullarton Street,
Suite 1801
London, ON
N6A 5P3

Tel: (519) 660-3260
Toll Free: (800) 265-1242
Fax: (519) 660-3208
Email Jeff
Visit my website

Greg Holland
Tel: (519) 660-3239
Email Greg

Ann Martin
Tel: (519) 660-3260
Email Ann


















Unsubscribe



Privacy Policy and Legal Disclaimer
TM Trademarks used under authorization and control of The Bank of Nova Scotia.
ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF

This publication is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any of the securities mentioned in it. The author is an employee of ScotiaMcLeod, a division of Scotia Capital Inc. ("SCI"), but the data selection, analysis and views expressed herein are solely those of the author and not those of SCI. The author has taken all usual and reasonable precautions to determine that the information contained in this publication has been obtained from sources believed to be reliable and that the procedures used to summarize and analyze such information are based on approved practices and principles in the investment industry. However, the market forces underlying investment value are subject to sudden and dramatic changes and data availability varies from one moment to the next. Consequently, neither the author nor SCI can make any warranty as to the accuracy or completeness of information, analysis or views contained in this publication or their usefulness or suitability in any particular circumstance. You should not undertake any investment or portfolio assessment or other transaction on the basis of this publication, but should first consult your investment advisor, who can assess all relevant particulars of any proposed investment or transaction. SCI and the author accept no liability of whatsoever kind for any damages or losses incurred by you as a result of reliance upon or use of this publication in contravention of this notice. All performance data represents past performance and is not indicative of future performance. Scotia Capital Inc. and its affiliates collectively beneficially own in excess of 1% of one or more classes of the issued and outstanding equity securities of Royal Bank. Within the last 12 months, Scotia Capital Inc. and/or its affiliates have undertaken an underwriting liability with respect to equity or debt securities of, or have provided advice for a fee with respect to Royal Bank. TM Trademark used under authorization and control of The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF.

Learning about Twitter

Read about learning to use Twitter, in Jonathan Chevreau's Wealthy Boomer Blog

In my never ending efforts to keep you up to date on market issues, follow me on Twitter

Improve Your Income In These Challenging Times

Interest rates and GICs have reached record lows. Where should you
look for income? Surprisingly, there are several very safe places an
investor may go for secure income. Canadian banks offer preferred
shares with yields well over eight percent. Further, many of the
banks have brought out bonds with yields approaching 10 percent.
Insurance companies are offering alternatives with varying yields,
depending on your age and health. None of these solutions is as
simple as a GIC, but with the guidance of an advisor, they may
significantly improve your income in these challenging times.

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

Now you may follow Beyondfunds on Twitter and Facebook

Now you can follow my commentary on Twitter or Facebook

You have to love technology!

We Pay The Highest Fund Management Fees

Over the weekend, members of the Canadian mutual fund industry spoke
out about their concern that the new HST would increase mutual fund
mangement expenses. God forbid! We already pay the highest fund
management fees in the world, but the impact of an increase in sales
tax is suddenly a problem? Very few Canadian mutual funds beat the
index they are measured against, so the impending change is just one
more reason to get a second opinion.regarding your funds. Visit
http://www.morningstar.ca/globalhome/industry/fundtable.asp?quick=basic&starrating5=5&nodata=0
to see that even the top funds rarely beat the index.

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

Weekly Newsletter

Market Watch



The big picture

G-20 take aim to help spark growth



The European Central Bank surprised financial markets by cutting its main interest rate to a new low of 1.25 percent with a smaller-than-expected 25 basis point reduction. At the Group of 20 (G-20) Summit, a host of measures were announced that are designed to help to reignite world growth. World leaders agreed to tighter regulation of the global financial system and pledged more than $1 trillion to bolster lending by the International Monetary Fund to nations in need.



The G-20, which represents most of the world's largest economies, is taking "unprecedented steps" to attack the global economic downturn, stimulate growth and expand loans to troubled nations, President Obama said at the close of the group's meeting in London. Prime Minister Stephen Harper applauded the outcome, stating that “markets should take considerable comfort from this action.”



The Organization for Economic Cooperation and Development (OECD) downgraded previous economic growth forecasts, predicting that the economies of the 30 wealthy OECD countries will shrink in 2009 and 2010. Nevertheless, OECD Chief Economist Klaus Schmidt-Hebbel expressed confidence that government-implemented policies will succeed in preventing another Great Depression.



General Motors CEO, Rick Wagoner was ousted from his position by the Obama administration after nine years at the company’s helm – in the process both GM and Chrysler were chided for failing to submit adequate restructuring plans.



The markets

Winning streak continues



The S&P TSX jumped to its highest close in nearly three months on hopes that actions agreed to at the G-20 summit in London would help restore global growth. Meanwhile, Research In Motion Ltd. said that its earnings jumped nearly 26% – exceeding analyst estimates – during the fourth fiscal quarter on strong sales of the company's BlackBerry line of smart phones.



Thomson Reuters predicted rising sales in its annual report, saying that the company is well-positioned geographically to survive the global economic downturn, in part due to continued growth potential in emerging markets. At the same time, the head of Canada's banking regulator said that Canadian financial institutions are looking at whether they should take advantage of their strong balance sheets to acquire assets in other countries hit by the global financial crisis.



Our recommendation
Time to selectively build positions



· 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 month in review

March: In like a bear, out like a bull



Indices fell during the month’s early trading days of March, before surging in the latter half of the month. In addition to rising stock prices, March also saw an increase in merger and acquisition activity, manufacturing, and pending U.S. home sales. Meanwhile, interest rates in Canada, the U.K. and Europe were ratcheted lower, and economic growth forecasts of some central bankers and the Organization for Economic Co-ordination and Development also fell.



Strongest market rally in decades



Stock markets finished the first quarter of 2009 higher after a rally three weeks in length and counting. Since falling to multi-year lows March 9, the TSX main index finished the quarter up about 15% while the Dow Jones industrial average had risen 16%. On the second trading day of April, investors sent indexes up another 3%, with the Dow Jones breaking the 8,000 mark for the first time in nearly two months.



Easy money continues



Early in the month, the Bank of Canada took its short-term interests rates nearly as low as they can go on Tuesday, slicing the trend-setting overnight rate half a percentage point to an all-time low of 0.5%. Meanwhile, the Bank of England cut its key rate by another 50 basis points on Thursday to a record low of 0.5%, and the European Central Bank cut interest rates to an all-time low of 1.5%. Australia’s central bank was the only one to announce that rates would remain unchanged this week.



Economic indicators split



February U.S. home sales were released this month, and were an improvement from January levels. Meanwhile, Total Durable Goods Orders rose for the first time in five months, showing the largest monthly gain since December 2007. While March showed some signs that the global economy is trying to find a bottom, significant restructuring is still underway in many sectors of the economy. Indeed, an ADP survey of private employment in the U.S. showed a record 742,000 jobs were lost during the month.



Leaders cautiously optimistic



Early in the month, European Central Bank President Jean-Claude Trichet reiterated his expectation that the euro zone economy will pick up by 2010. Closer to home, Bank of Canada Governor Mark Carney was slowly backing away from his controversial prediction of 3.8% economic growth in 2010, telling a meeting of G20 financial watchdogs in England that his forecast of a recovery by the second half of 2009 will likely be adjusted downwards. In the U.S., Federal Reserve Chairman Ben Bernanke made an unprecedented appearance on the television program 60 Minutes in which he defended steps taken by the government to resuscitate the banking system, adding that sustained recovery can only happen once the financial sector has achieved solid footing.



Flurry of M&A activity



Mergers and acquisitions were fast and furious during March. Suncor and Petro-Canada announced a deal that would make the new entity the fifth-largest energy company in North America. In the pharmaceutical world, Switzerland’s Roche launched a USD$46.8 billion bid for U.S.-based Genentech, and Merck and Schering announced a merger worth USD$41.1 billion. Meanwhile, computer giants Sun and IBM are said to be actively engaged in merger talks.



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.

Perfect Time To Get A Second Opinion

The spring thaw continues in global stock markets. Economic reports remain generally poor, but equities have bounced off their lows of last month. There is still a lot of uncertainty in the market, but now is the perfect time to get a second opinion, and ensure your portfolio is properly positioned for the market recovery when it comes. This does not mean sticking with your traditional mutual funds. Tune in tomorrow at 8:30 , as I discuss options that protect you from further down side, while giving you the opportunity to prosper as the market recovers.

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


Notice of Confidentiality:
The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review re-transmission dissemination or other use of or taking of any action in reliance upon this information by persons or entities other than the intended recipient is prohibited. If you received this in error please contact the sender immediately by return electronic transmission and then immediately delete this transmission including all attachments without copying distributing or disclosing same.

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L’information transmise est strictement réservée à la personne ou à l’organisme auquel elle est adressée et peut être de nature confidentielle. Toute lecture retransmission divulgation ou autre utilisation de cette information ou toute action prise sur la foi de cette information par des personnes ou organismes autres que son destinataire est interdite. Si vous avez reçu cette information par erreur veuillez contacter son expéditeur immédiatement par retour du courrier électronique puis supprimer cette information y compris toutes pièces jointes sans en avoir copié divulgué ou diffusé le contenu.

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Este correo electrónico y/o el material adjunto es para uso exclusivo de la persona o entidad a la que expresamente se le ha enviado y puede contener información confidencial o material privilegiado. Si usted no es el destinatario legítimo del mismo por favor repórtelo inmediatamente al remitente del correo y bórrelo. Cualquier revisión retransmisión difusión o cualquier otro uso de este correo por personas o entidades distintas a las del destinatario legítimo queda expresamente prohibido. Este correo electrónico no pretende ni debe ser considerado como constitutivo de ninguna relación legal contractual o de otra índole similar.

Nervous About The Risk?

Quarter one of 2009 is over, and it was one for the record books. It was the worst first quarter for the Dow in over half a century, and yet the surge in March made March the best on record. Volatility remains near record levels. Fixed income markets fared no better, as GICs and government bonds have almost no yield, Corporate bond markets have seized up. In this environment, you may be conflicted. You want to be involved in the market, but you really need safe income. You need return, but are nervous about the risk. If this describes your situation, tune in Saturday morning at 8:30, or give me a call, to discuss your situation in person.

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


Notice of Confidentiality:
The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review re-transmission dissemination or other use of or taking of any action in reliance upon this information by persons or entities other than the intended recipient is prohibited. If you received this in error please contact the sender immediately by return electronic transmission and then immediately delete this transmission including all attachments without copying distributing or disclosing same.