One of the biggest risks to financial security is the cost of long term care. Nearly half of all retirees will end up needing care in a retirement or nursing home. The cost can be huge, yet I rarely see financial plans taking this into account. If both spouses are alive, and one ends up in a nursing home, the impact may be devastating. Fortunately, new alternatives, like long term care insurance, have emerged., and you may protect yourself from this risk Do you need to make sure your plan is protected?
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, member CIPF
Wednesday, May 27, 2009
Monday, May 25, 2009
Mutual fund fee impact calculator
Education is one of the most important tools an investor has at their disposal. The Ontario Securities Commission has an excellent web site, www.investored.ca, and it features a very powerful mutual fund fee impact calculator. If you have a portfolio comprised of mutual funds, this tool is quite eye opening. Let's assume you put a lump sum in an average equity fund today. Over 25 years, paying the average mutual fund expense ratio, you are likely to pay more in fees than the original lump sum you invested. The good news is, other options exist, if you are dealing with the right advisor.
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, member CIPF
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, member CIPF
Sunday, May 24, 2009
Weekly Newsletter
Market Watch
The big picture
U.S. housing reaches key affordability level
Canada has less need than other countries to boost its economy with unusual steps like printing money to buy assets, a Bank of Canada official said on Tuesday, hammering home the message that it has done enough to combat the recession. “Canada has not been subject to many of the imbalances and vulnerabilities that have affected other countries, and has had less need for unconventional measures,” Deputy Governor John Murray said in a speech in Philadelphia.
More Americans are warming to the idea of buying a home, according to a report from the University of Michigan. The trend is being driven in part by improved affordability, as the income required to buy a first home now has dropped below median family income for the first time in recent history. Overall U.S. housing construction starts and permits slumped to fresh lows in April; however, single-family homes, which make up the lion’s share of the U.S. housing market, saw a 3.6% rise in building permits and a 2.8% increase in new construction.
On Tuesday, a source familiar with General Motors’ ongoing restructuring bid said it is likely that the company’s healthy assets will be sold to a new company owned by the U.S. government. On Thursday, GM shares rose 32% on news that the troubled company has cleared a major obstacle in its restructuring, as the United Auto Workers agreed to cut labour costs and accept new terms for a $20-billion union retiree healthcare obligation.
The markets
Loonie takes flight
From its March 9th low of 76.53 cents (U.S.), the Canadian dollar has zoomed up more than 11 cents to touch 88 cents this week. The currency’s rise is largely tied to stronger energy prices, as oil struck a six-month high of $60.75 on Wednesday before pulling back on Thursday. Rising oil also helped spur resource stocks and the TSX higher on Tuesday and Wednesday.
Home Depot said this week that its first-quarter profit climbed 44%, and its number-two competitor, Lowe’s, further buoyed investors with a projection of higher second-quarter profits. In a sign of improving equity market confidence, Bank of America said it bolstered its balance sheet this week by raising a remarkable US$13.5 billion in a common share offering.
Our recommendation
Review goals and risk tolerance as markets move
· Equities. Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group, believes the current strength in equities is overdone and should be viewed as a bear market rally as opposed to the beginning of the next bull market. We continue to advocate that investors take profits in long trading positions or overvalued cyclical positions that do not represent long term, core holdings. In the event of an inevitable pull-back, return to selectively accumulating equities 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 investors following the laddered portfolio process add exposure to these sectors when rolling maturities at this time.
· Portfolio strategy. With significant volatility still a factor in the markets, 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.
The big picture
U.S. housing reaches key affordability level
Canada has less need than other countries to boost its economy with unusual steps like printing money to buy assets, a Bank of Canada official said on Tuesday, hammering home the message that it has done enough to combat the recession. “Canada has not been subject to many of the imbalances and vulnerabilities that have affected other countries, and has had less need for unconventional measures,” Deputy Governor John Murray said in a speech in Philadelphia.
More Americans are warming to the idea of buying a home, according to a report from the University of Michigan. The trend is being driven in part by improved affordability, as the income required to buy a first home now has dropped below median family income for the first time in recent history. Overall U.S. housing construction starts and permits slumped to fresh lows in April; however, single-family homes, which make up the lion’s share of the U.S. housing market, saw a 3.6% rise in building permits and a 2.8% increase in new construction.
On Tuesday, a source familiar with General Motors’ ongoing restructuring bid said it is likely that the company’s healthy assets will be sold to a new company owned by the U.S. government. On Thursday, GM shares rose 32% on news that the troubled company has cleared a major obstacle in its restructuring, as the United Auto Workers agreed to cut labour costs and accept new terms for a $20-billion union retiree healthcare obligation.
The markets
Loonie takes flight
From its March 9th low of 76.53 cents (U.S.), the Canadian dollar has zoomed up more than 11 cents to touch 88 cents this week. The currency’s rise is largely tied to stronger energy prices, as oil struck a six-month high of $60.75 on Wednesday before pulling back on Thursday. Rising oil also helped spur resource stocks and the TSX higher on Tuesday and Wednesday.
Home Depot said this week that its first-quarter profit climbed 44%, and its number-two competitor, Lowe’s, further buoyed investors with a projection of higher second-quarter profits. In a sign of improving equity market confidence, Bank of America said it bolstered its balance sheet this week by raising a remarkable US$13.5 billion in a common share offering.
Our recommendation
Review goals and risk tolerance as markets move
· Equities. Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group, believes the current strength in equities is overdone and should be viewed as a bear market rally as opposed to the beginning of the next bull market. We continue to advocate that investors take profits in long trading positions or overvalued cyclical positions that do not represent long term, core holdings. In the event of an inevitable pull-back, return to selectively accumulating equities 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 investors following the laddered portfolio process add exposure to these sectors when rolling maturities at this time.
· Portfolio strategy. With significant volatility still a factor in the markets, 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.
Friday, May 22, 2009
Global Fund Management Fees
Global markets have rallid dramatically since the lows of March. A number are up 50%during that time. A well diversified porfolio should have international exposure, and frequently, the solution is a global mutual fund. Unfortunately, the global funds feature very high management fees, and this can be a huge drag on your portfolio's return. Exchange traded funds may give you global exposure, with dramatically lower costs. If you are not happy with the returns of your global funds, why not give me a call?
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, member CIPF
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, member CIPF
Wednesday, May 20, 2009
You need a stragedy
Canadian stocks surged yesterday, after US stocks and oil surged on
Victoria Day. The major economic news remains terrible, but less so
than a few months ago. Is it time to jump in? Have you missed the
boat?
Perhaps it makes sense to pick away at investments you like, but we
are up nearly 40% from the bottom, so be careful, and work with an
advisor. Many pundits feel a pullback is in order, and that may be
the time to act...regardless, you need a strategy, and it may be time
to get 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, member CIPF
Victoria Day. The major economic news remains terrible, but less so
than a few months ago. Is it time to jump in? Have you missed the
boat?
Perhaps it makes sense to pick away at investments you like, but we
are up nearly 40% from the bottom, so be careful, and work with an
advisor. Many pundits feel a pullback is in order, and that may be
the time to act...regardless, you need a strategy, and it may be time
to get 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, member CIPF
Sunday, May 17, 2009
Weekly Newsletter
Market Watch
The big picture
Auto sales up as GM plant closes
Canadian sales of new motor vehicles rose 6.3% in March, the largest monthly gain since January 2008. Statistics Canada attributes the increase mainly to higher truck sales, which were up 11%, more than offsetting the decline in sales in February. Ironically, this news came a day before thousands of workers and family members gathered to witness the end of an era, as the last truck rolled out of an Oshawa, Ontario General Motors plant that first opened in 1965.
U.S. Treasury Secretary Timothy Geithner said Wednesday that the financial system is “starting to heal” as a result of massive efforts to rescue banks and steady the housing market. In a speech to community bankers, Geithner added that “Concern about systemic risk has diminished and overall lending conditions have started to improve.” As a sign that a recovery may be underway, four large U.S. banks that fared well under recent government “stress tests” announced this week that they will issue new common shares and use the proceeds to start repaying government bailout funds.
European Central Bank President Jean-Claude Trichet expressed optimism at a news conference on Monday, saying that we are “around the inflection point” in the current economic cycle. Bolstering that view, new data from the Organisation for Economic Co-operation and Development showed that some of the world’s leading economies may be on the path to recovery.
The markets
Consolidation continues
Equity markets ended the week lower - capping a two month rally. Weaker US retail sales and employment data were catalysts for profit taking. Few were surprised that the market pulled back slightly—measured from their March lows, the S&P 500 was up a remarkable 39% and the TSX 37%. The gains have been supported by a steady stream of improving economic news and, in Canada, stronger energy prices, with oil prices pushing towards $60 per barrel.
Consolidation continues to be an important market theme. This week, R.R. Donnelley & Sons Co. stated that it wrote to rival printer Quebecor World Inc. expressing interest in acquiring the bankrupt company for $1.35 billion, saying it can offer creditors better terms than a proposed reorganization plan as part of bankruptcy proceedings in the U.S. and Canada.
Our recommendation
Look for opportunity in market dips
· 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
Auto sales up as GM plant closes
Canadian sales of new motor vehicles rose 6.3% in March, the largest monthly gain since January 2008. Statistics Canada attributes the increase mainly to higher truck sales, which were up 11%, more than offsetting the decline in sales in February. Ironically, this news came a day before thousands of workers and family members gathered to witness the end of an era, as the last truck rolled out of an Oshawa, Ontario General Motors plant that first opened in 1965.
U.S. Treasury Secretary Timothy Geithner said Wednesday that the financial system is “starting to heal” as a result of massive efforts to rescue banks and steady the housing market. In a speech to community bankers, Geithner added that “Concern about systemic risk has diminished and overall lending conditions have started to improve.” As a sign that a recovery may be underway, four large U.S. banks that fared well under recent government “stress tests” announced this week that they will issue new common shares and use the proceeds to start repaying government bailout funds.
European Central Bank President Jean-Claude Trichet expressed optimism at a news conference on Monday, saying that we are “around the inflection point” in the current economic cycle. Bolstering that view, new data from the Organisation for Economic Co-operation and Development showed that some of the world’s leading economies may be on the path to recovery.
The markets
Consolidation continues
Equity markets ended the week lower - capping a two month rally. Weaker US retail sales and employment data were catalysts for profit taking. Few were surprised that the market pulled back slightly—measured from their March lows, the S&P 500 was up a remarkable 39% and the TSX 37%. The gains have been supported by a steady stream of improving economic news and, in Canada, stronger energy prices, with oil prices pushing towards $60 per barrel.
Consolidation continues to be an important market theme. This week, R.R. Donnelley & Sons Co. stated that it wrote to rival printer Quebecor World Inc. expressing interest in acquiring the bankrupt company for $1.35 billion, saying it can offer creditors better terms than a proposed reorganization plan as part of bankruptcy proceedings in the U.S. and Canada.
Our recommendation
Look for opportunity in market dips
· 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.
Friday, May 15, 2009
Prepare your portfolio for the eventual recovery
The first long weekend of the summer is at hand. As gardeners look for this time to plant and prepare for summer, a prudent investor should be preparing their portfolio for the recovery that will eventually come. The market has already moved, but if you are patient, you may find the opportunity to buy great companies with exceptional growth prospects, while pruning the holdings that do not fit your strategy. Like a long, cold winter, market downturns eventually end, and the seeds sown now will blossom in time.
Does your portfolio need some weeding, and some new growth?
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, member CIPF
Does your portfolio need some weeding, and some new growth?
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, member CIPF
Wednesday, May 13, 2009
A good long term strategy = a GPS for your money
One of the key lessons of this market is the value of a financial plan. A good long term strategy is like a GPS for your money. You may encounter unexpected twists and turns, but the plan ensures you remain on track for your goals. Trouble is, most investors do not have a plan, and if you do not know your destination, you are likely to end up focused on the twists and turns, not the destination.
Sign up for AM 980's Half Price Wednesdays, and you may qualify for a thorough, goals based financial plan at half the normal cost.
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, member CIPF
Sign up for AM 980's Half Price Wednesdays, and you may qualify for a thorough, goals based financial plan at half the normal cost.
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, member CIPF
Monday, May 11, 2009
Weekly Newsletter
The big picture
Stress test results revealed
On Thursday evening, the U.S. government’s long-awaited “stress-test” results revealed that 10 of the 19 largest U.S. banks would need a total of about US$75 billion in new capital to withstand losses if the recession worsened. Officials hope the tests will restore investors’ confidence that not all banks are weak, and that even those that are can be strengthened.
The findings show that the financial system, like the overall economy, is healing but not yet healed. Further evidence of economic healing this week included a Department of Commerce report of increased U.S. construction spending, a 3.2% rise in pending home sales and, according to ADP Employer Services, a decline in private-sector job loss.
On Wednesday, Bank of Canada Governor Mark Carney reassured a Senate committee that further stimulus measures would not be required. He predicted that, barring any economic “shocks,” growth will commence by year-end, and accelerate in 2010.
Thursday, the European Central Bank cut interest rates a quarter-point to 1%, and announced plans to buy US$80.2 billion in euro-denominated bonds in a bid to stimulate credit. The Bank of England held rates at 0.5%, but said it would step up its efforts to increase the money supply by US$75.4 billion.
The markets
Markets hit six-month highs
The S&P 500 surged 3.4% Monday, for a total increase of 34% since March 9, putting the index back in positive territory for 2009. Markets continued to charge ahead Tuesday and Wednesday, and the TSX moved above 10,000 for the first time in six months. The Canadian dollar also hit a six-month high, trading at US$85.42.
With a dramatically culled product line, food manufacturer Kraft posted a 10% profit in the first quarter, and said it is expecting to eat up more market share. Meanwhile, Canadian wireless leader Research In Motion announced an alliance with HP to expand functionality for its BlackBerry smartphones. In other news, Wal-Mart staked a claim in one of the world’s fastest-growing retail markets with a pilot program to open convenience stores in China.
Our recommendation
Position portfolios for the next cycle
• Equities. Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group, believes the current strength in equities is getting somewhat extended and is merely a rally in a bear market as opposed to the beginning of the next bull market. We continue to advocate that investors take profits in long trading positions or overvalued holdings that do not represent long term, core holdings. In the event of an inevitable pull-back, return to selectively accumulating 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 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.
Stress test results revealed
On Thursday evening, the U.S. government’s long-awaited “stress-test” results revealed that 10 of the 19 largest U.S. banks would need a total of about US$75 billion in new capital to withstand losses if the recession worsened. Officials hope the tests will restore investors’ confidence that not all banks are weak, and that even those that are can be strengthened.
The findings show that the financial system, like the overall economy, is healing but not yet healed. Further evidence of economic healing this week included a Department of Commerce report of increased U.S. construction spending, a 3.2% rise in pending home sales and, according to ADP Employer Services, a decline in private-sector job loss.
On Wednesday, Bank of Canada Governor Mark Carney reassured a Senate committee that further stimulus measures would not be required. He predicted that, barring any economic “shocks,” growth will commence by year-end, and accelerate in 2010.
Thursday, the European Central Bank cut interest rates a quarter-point to 1%, and announced plans to buy US$80.2 billion in euro-denominated bonds in a bid to stimulate credit. The Bank of England held rates at 0.5%, but said it would step up its efforts to increase the money supply by US$75.4 billion.
The markets
Markets hit six-month highs
The S&P 500 surged 3.4% Monday, for a total increase of 34% since March 9, putting the index back in positive territory for 2009. Markets continued to charge ahead Tuesday and Wednesday, and the TSX moved above 10,000 for the first time in six months. The Canadian dollar also hit a six-month high, trading at US$85.42.
With a dramatically culled product line, food manufacturer Kraft posted a 10% profit in the first quarter, and said it is expecting to eat up more market share. Meanwhile, Canadian wireless leader Research In Motion announced an alliance with HP to expand functionality for its BlackBerry smartphones. In other news, Wal-Mart staked a claim in one of the world’s fastest-growing retail markets with a pilot program to open convenience stores in China.
Our recommendation
Position portfolios for the next cycle
• Equities. Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group, believes the current strength in equities is getting somewhat extended and is merely a rally in a bear market as opposed to the beginning of the next bull market. We continue to advocate that investors take profits in long trading positions or overvalued holdings that do not represent long term, core holdings. In the event of an inevitable pull-back, return to selectively accumulating 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 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.
Are yourcurrent assets consistent withyour long term goals?
After a dizzying nine week rally, it might be tempting to stop worrying about your investments. In fact, the spectacular rally of the last few weeks is an opportunity to look at your existing portfolio, and make sure that your current assets are consistent with your long term goals. The market would need to rally another fifty percent from here to recapture last year's highs, so you need to ensure you have the right mix of equities for growth, and fixed income and cash to protect you should we see more downturn. It may be time to get a fresh approach, or seek 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 isa division of Scotia Capital, member CIPF
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 isa division of Scotia Capital, member CIPF
Friday, May 8, 2009
I have been discussing the theme of "Beyond Funds" for several years. Recently, I spent some time being interviewed by Jonathan Chevreau of the Financial Post, and we discussed investor alternatives in these difficult times. Tomorrow at 8:30, Jonathan will be joining me< and continuing these discussions. These interviews are posted on the www.financialpost.com, and on am980's web site, www.am980.ca. If you have 100,000 or more invested, you owe it to yourself to watch these interviews, and determine if you want a fresh approach.
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 isa division of Scotia Capital, member CIPF
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 isa division of Scotia Capital, member CIPF
Thursday, May 7, 2009
Wednesday, May 6, 2009
Video interview on investor alternatives beyond mutual funds
If you are a regular reader of the Financial Post online, you may have seen my video interview on investor alternatives beyond mutual funds. If you did not, and you are wondering if you should be moving beyond mutual funds, I encourage you to visit my blog on AM 980;s web site, or to visit the Wealthy Boomer blog on financialpost.com, and watch my 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 CIPfinterview. After a long and difficult period in the market, you may be looking for a fresh approach.
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 CIPfinterview. After a long and difficult period in the market, you may be looking for a fresh approach.
Tuesday, May 5, 2009
Jeff Wareham on The Wealthy Boomer
Author, Journalist, and blogger Jonathan Chevreau interviews Wealth Advisor jeff Wareham about his unique "Beyond Funds" message
Financial Post
AM980
Financial Post
AM980
Monday, May 4, 2009
Warren Buffet annual investor meeting...
This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.
Warren Buffet held his annual investor meeting this weekend. Every year, it gets bigger, and better. This year, I think the greatest lesson investors can get from Buffet is his belief in his business.
His willingness to openly discuss his investment strategy is inspirational. As an investor, I believe there is real merit in his approach. He invests with a long term view, in companies he feels he knows, and understands. If you lack this clarity in your investment plan, perhaps it is time to get 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
Warren Buffet held his annual investor meeting this weekend. Every year, it gets bigger, and better. This year, I think the greatest lesson investors can get from Buffet is his belief in his business.
His willingness to openly discuss his investment strategy is inspirational. As an investor, I believe there is real merit in his approach. He invests with a long term view, in companies he feels he knows, and understands. If you lack this clarity in your investment plan, perhaps it is time to get 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
Glimmers of hope continue to shine Monday, May 04, 2009
Market Watch: The big picture - Glimmers of hope continue to shine
Despite a 6.1% contraction in U.S. real gross domestic product (GDP) in the first quarter, encouraging signs have emerged this week. Tuesday's Conference Board index revealed U.S. consumer confidence is at its highest since November, while on the same day, Standard & Poor's Case-Shiller home price index reflected an increase in stability of U.S. housing prices. Meanwhile, the U.S. Federal Reserve announced no further changes to monetary policy following its meeting, indicating that the pace of economic contraction is continuing to slow and suggesting that the worst now may be behind us.
Mindful of our southern neighbour's missteps, on Tuesday Bank of Canada Governor, Mark Carney, cautioned the House of Commons to remain prudent, saying that crises are very difficult to predict, and warning that "One should never assume that because it hasn't happened that it won't happen."
The markets
Swine upsets bull
Fears of a global swine flu outbreak took its toll on markets this week, dragging the TSX down a couple hundred points over Monday and Tuesday. The impact was also felt across everything from livestock futures to the Mexican peso to airline stocks, as traders worried that consumers would rein in spending on travel and food perceived to be less safe because of the outbreak.
Shoppers Drug Mart reported a strong 6.1% boost in first quarter profit, attributing it to a boom in prescription sales. Other companies posting first quarter profits included Bristol-Myers, Whirlpool and Corning. Meanwhile, Bombardier Inc. won a $1.2-billion contract to build 204 streetcars for the City of Toronto. The order is expected to have a substantial positive impact on employment for workers at the Thunder Bay, Ontario, plant.
Chrysler became the first-ever major U.S. automaker to file for bankruptcy protection. The company announced it will temporarily halt most of its vehicle production while it completes a deal with Italian carmaker Fiat designed to revive its tattered fortunes. The Canadian government, along with the province of Ontario, will provide $2.42 billion in financing to assist with the restructuring process.
Our recommendation
Review portfolio allocations for suitability
* 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 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.
The month in review
April: Green shoots of growth
April saw a number of encouraging economic signs emerge, largely thanks to the unprecedented, aggressive measures taken by global leaders to bolster the world's economy. In addition, a number of individual businesses reported encouraging developments, such as a 26% jump in earnings for Canadian technology leader Research In Motion, and word that Goldman Sachs will repay its government bailout funds much more quickly than initially planned.
Market rally stumbles
The market's stunning seven-week, 30%+ rally began in March and continued into early April. After pulling back 4.3% in second-last week of the month, the S&P 500 regained 4.1% to end the week down only 0.4%. Markets went on to finish the month of April on solid ground, with a string of better-looking economic data providing support over the last two weeks of the month.
Bank rates reach new record lows
In the first week of April, the European Central Bank surprised financial markets by cutting its main interest rate to a record-breaking 1.25%. Meanwhile, the holdout Reserve Bank of Australia finally slashed its rate to 3%. Late in the month, the Bank of Canada (BoC) cut its key lending rate to a record 0.25% after acknowledging that previous forecasts of a swift recovery may have been too rosy.
China set to grow
The World Bank said that China is likely to emerge from its economic slump this year. "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.
Strong numbers met with caution
Positive economic indicators were noted in housing, unemployment and consumer spending this month, with a broad consensus forming among officials and economists that, even if we are not yet seeing a rebound, the rate of economic decline is certainly slowing. However, despite this consensus, warnings were issued by both the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD) that grave risks remain, and the end of present economic difficulties is still nowhere in sight.
Deals made and lost
French energy concern Total saw its $830-million bid for UTS thwarted at the end of April due to a lack of shareholder approval. After scrapping plans to buy Sun Microsystems this month, tech giant IBM raised its dividend by 10% and announced it will repurchase $3 billion of its stock in an effort to maintain investor confidence. Meanwhile, General Motors announced a novel partnership 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.
Despite a 6.1% contraction in U.S. real gross domestic product (GDP) in the first quarter, encouraging signs have emerged this week. Tuesday's Conference Board index revealed U.S. consumer confidence is at its highest since November, while on the same day, Standard & Poor's Case-Shiller home price index reflected an increase in stability of U.S. housing prices. Meanwhile, the U.S. Federal Reserve announced no further changes to monetary policy following its meeting, indicating that the pace of economic contraction is continuing to slow and suggesting that the worst now may be behind us.
Mindful of our southern neighbour's missteps, on Tuesday Bank of Canada Governor, Mark Carney, cautioned the House of Commons to remain prudent, saying that crises are very difficult to predict, and warning that "One should never assume that because it hasn't happened that it won't happen."
The markets
Swine upsets bull
Fears of a global swine flu outbreak took its toll on markets this week, dragging the TSX down a couple hundred points over Monday and Tuesday. The impact was also felt across everything from livestock futures to the Mexican peso to airline stocks, as traders worried that consumers would rein in spending on travel and food perceived to be less safe because of the outbreak.
Shoppers Drug Mart reported a strong 6.1% boost in first quarter profit, attributing it to a boom in prescription sales. Other companies posting first quarter profits included Bristol-Myers, Whirlpool and Corning. Meanwhile, Bombardier Inc. won a $1.2-billion contract to build 204 streetcars for the City of Toronto. The order is expected to have a substantial positive impact on employment for workers at the Thunder Bay, Ontario, plant.
Chrysler became the first-ever major U.S. automaker to file for bankruptcy protection. The company announced it will temporarily halt most of its vehicle production while it completes a deal with Italian carmaker Fiat designed to revive its tattered fortunes. The Canadian government, along with the province of Ontario, will provide $2.42 billion in financing to assist with the restructuring process.
Our recommendation
Review portfolio allocations for suitability
* 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 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.
The month in review
April: Green shoots of growth
April saw a number of encouraging economic signs emerge, largely thanks to the unprecedented, aggressive measures taken by global leaders to bolster the world's economy. In addition, a number of individual businesses reported encouraging developments, such as a 26% jump in earnings for Canadian technology leader Research In Motion, and word that Goldman Sachs will repay its government bailout funds much more quickly than initially planned.
Market rally stumbles
The market's stunning seven-week, 30%+ rally began in March and continued into early April. After pulling back 4.3% in second-last week of the month, the S&P 500 regained 4.1% to end the week down only 0.4%. Markets went on to finish the month of April on solid ground, with a string of better-looking economic data providing support over the last two weeks of the month.
Bank rates reach new record lows
In the first week of April, the European Central Bank surprised financial markets by cutting its main interest rate to a record-breaking 1.25%. Meanwhile, the holdout Reserve Bank of Australia finally slashed its rate to 3%. Late in the month, the Bank of Canada (BoC) cut its key lending rate to a record 0.25% after acknowledging that previous forecasts of a swift recovery may have been too rosy.
China set to grow
The World Bank said that China is likely to emerge from its economic slump this year. "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.
Strong numbers met with caution
Positive economic indicators were noted in housing, unemployment and consumer spending this month, with a broad consensus forming among officials and economists that, even if we are not yet seeing a rebound, the rate of economic decline is certainly slowing. However, despite this consensus, warnings were issued by both the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD) that grave risks remain, and the end of present economic difficulties is still nowhere in sight.
Deals made and lost
French energy concern Total saw its $830-million bid for UTS thwarted at the end of April due to a lack of shareholder approval. After scrapping plans to buy Sun Microsystems this month, tech giant IBM raised its dividend by 10% and announced it will repurchase $3 billion of its stock in an effort to maintain investor confidence. Meanwhile, General Motors announced a novel partnership 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.
Why a balanced approach is the best long term strategy
After nearly two years of market uncertainty, and a decade of negative stock market returns, we have seen a spectacular month in the market. The wild swings in the market reveal why a balanced approach is the best long term strategy for most investors, as bonds, preferred shares, and cash really help insulate investors from such volatility. With the market recovery we have seen, why not get a second opinion, and look at rebalancing to an asset mix that suits your needs. Tune in tomorrow at 8:30 as I interview Jonathan Chevreau, financial author, for a discussion on investing for the long term.
Subscribe to:
Posts (Atom)