September 2009 is coming to an end, and it appears North American
markets will experience their seventh consecutive positive month.
This is a spectacular winning streak, after the grisly bear market of
2008. This change in market sentiment may make you more comfortable
with your portfolio, but it also should inspire you to look at your
long term strategy. Through the downturn, most mutual funds fell more
than the index, and most are struggling to beat the index as the
market recovers. If you are comfortable investing for the long term,
but are looking for a fresh approach, 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
Wednesday, September 30, 2009
Tuesday, September 29, 2009
Wareham Weekly Insights
Market Watch
The big picture
U.S. economy picking up steam
The Federal Reserve kept interest rates unchanged at 0.25%, while giving its most upbeat assessment of the U.S. economy in 18 months and voting to end its US$1.45-trillion program for buying mortgage debt three months early. G20 world leaders are holding talks on the global financial crisis today, where bankers’ pay will be at the centre of discussions. Britain’s finance minister says “the party is over” for bankers who were at the heart of “this almighty car crash.” Bank of England Governor Mervyn King revealed that the Royal Bank of Scotland and HBOS had been just hours away from collapsing last October.
In Canada, Prime Minister Stephen Harper cautioned that while the recession technically may be over, the recovery is extremely fragile, particularly in the automotive and forestry industries. Retail sales fell 0.6% to $34.2 billion in July, mainly because of lower gas prices. The Bank of Canada said it would ignore short-term volatility in its exchange rate but warned again that a strong Canadian dollar could curb growth. A rate increase could come after the middle of 2010.
The Markets
Stocks slide on falling oil prices and home sales
North American stock indices retreated broadly on Thursday as a slide in oil prices knocked energy shares lower and weak U.S. home sales data hit other shares. With supplies on the rise, oil prices dropped more than 4% to less than $66 a barrel. Research In Motion’s quarterly profit and outlook fell short of analyst expectations on Thursday, sending its shares down sharply. Canada’s biggest IT services player, CGI, surged nearly 6% Monday on takeover speculation, following Dell’s proposed acquisition of Perot Systems for US$3.9 billion, which represents a 68% premium.
Canadian auto supplier Magna said it will appease Volkswagen, which has threatened to pull business from Magna if it buys a stake in Opel, a competing car company. After rejecting an initial offer of US$16 billion, Cadbury has asked Kraft to submit another bid. A123 Systems, a U.S.-based battery maker for electric cars, jumped 43% in one day after raising US$380 million through an initial public offering. Google re-touched the US$500 level, after hitting a low of US$250 in the past year. Google’s new Internet phone service, Google Voice, is expected to draw scrutiny from regulators.
Our recommendation
Favour equities to outperform
· Equities. Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group, says the market trend remains upward in the short term despite economic risks on the horizon. Although market valuations are not excessive at current levels, they are already pricing in a significant rebound in earnings in 2010. The market is not overpriced, just overbought in the short term; we would be adding weight in cyclical holdings on any market pullback.
· Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, highlights the following recommendations: Term Call – below benchmark duration. Sector Call – underweight Canadas, overweight Municipals and Provincials, neutral on Corporates. Currency Call – favour the C$, as well as the A$, which is expected to outperform. Alternative Strategies – overweight high yield, overweight Emerging Markets Debt, underweight inflation protected bonds.
· Portfolio strategy. Vincent Delisle, Scotia Capital’s Portfolio Strategist, writes, “we are in a higher-highs/higher-lows environment and recommend buying the dips, not selling the rallies. Our longer term stance remains positive and we expect equities and corporate bonds to outperform Treasuries over the next 12-18 months.”
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. economy picking up steam
The Federal Reserve kept interest rates unchanged at 0.25%, while giving its most upbeat assessment of the U.S. economy in 18 months and voting to end its US$1.45-trillion program for buying mortgage debt three months early. G20 world leaders are holding talks on the global financial crisis today, where bankers’ pay will be at the centre of discussions. Britain’s finance minister says “the party is over” for bankers who were at the heart of “this almighty car crash.” Bank of England Governor Mervyn King revealed that the Royal Bank of Scotland and HBOS had been just hours away from collapsing last October.
In Canada, Prime Minister Stephen Harper cautioned that while the recession technically may be over, the recovery is extremely fragile, particularly in the automotive and forestry industries. Retail sales fell 0.6% to $34.2 billion in July, mainly because of lower gas prices. The Bank of Canada said it would ignore short-term volatility in its exchange rate but warned again that a strong Canadian dollar could curb growth. A rate increase could come after the middle of 2010.
The Markets
Stocks slide on falling oil prices and home sales
North American stock indices retreated broadly on Thursday as a slide in oil prices knocked energy shares lower and weak U.S. home sales data hit other shares. With supplies on the rise, oil prices dropped more than 4% to less than $66 a barrel. Research In Motion’s quarterly profit and outlook fell short of analyst expectations on Thursday, sending its shares down sharply. Canada’s biggest IT services player, CGI, surged nearly 6% Monday on takeover speculation, following Dell’s proposed acquisition of Perot Systems for US$3.9 billion, which represents a 68% premium.
Canadian auto supplier Magna said it will appease Volkswagen, which has threatened to pull business from Magna if it buys a stake in Opel, a competing car company. After rejecting an initial offer of US$16 billion, Cadbury has asked Kraft to submit another bid. A123 Systems, a U.S.-based battery maker for electric cars, jumped 43% in one day after raising US$380 million through an initial public offering. Google re-touched the US$500 level, after hitting a low of US$250 in the past year. Google’s new Internet phone service, Google Voice, is expected to draw scrutiny from regulators.
Our recommendation
Favour equities to outperform
· Equities. Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group, says the market trend remains upward in the short term despite economic risks on the horizon. Although market valuations are not excessive at current levels, they are already pricing in a significant rebound in earnings in 2010. The market is not overpriced, just overbought in the short term; we would be adding weight in cyclical holdings on any market pullback.
· Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, highlights the following recommendations: Term Call – below benchmark duration. Sector Call – underweight Canadas, overweight Municipals and Provincials, neutral on Corporates. Currency Call – favour the C$, as well as the A$, which is expected to outperform. Alternative Strategies – overweight high yield, overweight Emerging Markets Debt, underweight inflation protected bonds.
· Portfolio strategy. Vincent Delisle, Scotia Capital’s Portfolio Strategist, writes, “we are in a higher-highs/higher-lows environment and recommend buying the dips, not selling the rallies. Our longer term stance remains positive and we expect equities and corporate bonds to outperform Treasuries over the next 12-18 months.”
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.
Monday, September 21, 2009
Wareham Weekly Insights
Market Watch
The big picture
One year later: Growth emerges
Tuesday marked one year since Lehman Brothers declared bankruptcy, setting off the worst financial crisis since the Great Depression. U.S. President Barack Obama spoke to a Wall Street audience, lauding his administration’s moves to prevent future financial calamities and warning that further bailouts are unlikely. Legendary investor Warren Buffett also praised the U.S. government for its efforts to heal the economy. Federal Reserve Chairman Ben Bernanke said the U.S. recession is technically over, with growth expected to show in the third quarter, but warned the economy may remain weak for some time.
In Canada, Finance Minister Jim Flaherty insisted that it would be a major mistake for developed economies not to continue stimulus, and the Bank of Canada repeated warnings that economic recovery may be hampered by the strong loonie. Inflation was negative for the third straight month, but economists said it’s not deflation – taking energy out of the calculation, inflation would have been a healthy 1.4%. The Bank of England may reduce the Bank’s deposit rate to discourage banks from hoarding reserves and encourage them to buy more assets. Beijing filed a complaint with the World Trade Organization as the U.S. raised tariffs on Chinese-made tires, which have cost 5,000 U.S. jobs since 2004.
Markets
Stocks rally and book sellers rejoice
The TSX index had a three-day run-up, hitting its highest level in almost a year on Wednesday as commodities and financial shares rallied. But on Thursday, stocks in Canada and the U.S. slipped on concerns whether recent market gains were justified, despite the latest round of solid economic data. The benchmark S&P 500 is now up 58% since its early March lows.
Magna’s second-largest customer, BMW, warned that their relationship could be in jeopardy if the parts supplier turns into a competitor. Magna plans to buy a stake in Opel, GM’s European car division. Nova Scotia was given the green light to test turbines in the Bay of Fundy. If viable, sea power could meet 10% of the province’s energy needs. Suncor is making deep cuts after its $22.7-billion takeover of Petro-Canada, eliminating 1,000 jobs, selling properties and reducing natural gas production. Booksellers are rejoicing as bestselling author Dan Brown’s new book, The Lost Symbol, sold over a million copies in the first 24 hours of its release; however, Amazon reported the e-book edition for its Kindle reader had actually outsold the hardcover version.
Our recommendation
Expect equities and corporate bonds to outperform
· Equities. Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group, says the market trend remains upward in the short term despite economic risks on the horizon. Although market valuations are not excessive at current levels, they are already pricing in a significant rebound in earnings in 2010. The market is not overpriced, just overbought in the short term; we would be adding weight in cyclical holdings on any market pullback.
Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, highlights the following recommendations: Term Call – below benchmark duration. Sector Call – underweight Canadas, overweight Municipals and Provincials, neutral on Corporates. Currency Call – favour the C$, as well as the A$, which is expected to outperform. Alternative Strategies – overweight high yield, overweight Emerging Markets Debt, underweight inflation protected bonds.
Portfolio strategy. Vincent Delisle, Scotia Capital’s Portfolio Strategist, writes, “we are in a higher-highs/higher-lows environment and recommend buying the dips, not selling the rallies. Our longer term stance remains positive and we expect equities and corporate bonds to outperform Treasuries over the next 12-18 months.”
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
One year later: Growth emerges
Tuesday marked one year since Lehman Brothers declared bankruptcy, setting off the worst financial crisis since the Great Depression. U.S. President Barack Obama spoke to a Wall Street audience, lauding his administration’s moves to prevent future financial calamities and warning that further bailouts are unlikely. Legendary investor Warren Buffett also praised the U.S. government for its efforts to heal the economy. Federal Reserve Chairman Ben Bernanke said the U.S. recession is technically over, with growth expected to show in the third quarter, but warned the economy may remain weak for some time.
In Canada, Finance Minister Jim Flaherty insisted that it would be a major mistake for developed economies not to continue stimulus, and the Bank of Canada repeated warnings that economic recovery may be hampered by the strong loonie. Inflation was negative for the third straight month, but economists said it’s not deflation – taking energy out of the calculation, inflation would have been a healthy 1.4%. The Bank of England may reduce the Bank’s deposit rate to discourage banks from hoarding reserves and encourage them to buy more assets. Beijing filed a complaint with the World Trade Organization as the U.S. raised tariffs on Chinese-made tires, which have cost 5,000 U.S. jobs since 2004.
Markets
Stocks rally and book sellers rejoice
The TSX index had a three-day run-up, hitting its highest level in almost a year on Wednesday as commodities and financial shares rallied. But on Thursday, stocks in Canada and the U.S. slipped on concerns whether recent market gains were justified, despite the latest round of solid economic data. The benchmark S&P 500 is now up 58% since its early March lows.
Magna’s second-largest customer, BMW, warned that their relationship could be in jeopardy if the parts supplier turns into a competitor. Magna plans to buy a stake in Opel, GM’s European car division. Nova Scotia was given the green light to test turbines in the Bay of Fundy. If viable, sea power could meet 10% of the province’s energy needs. Suncor is making deep cuts after its $22.7-billion takeover of Petro-Canada, eliminating 1,000 jobs, selling properties and reducing natural gas production. Booksellers are rejoicing as bestselling author Dan Brown’s new book, The Lost Symbol, sold over a million copies in the first 24 hours of its release; however, Amazon reported the e-book edition for its Kindle reader had actually outsold the hardcover version.
Our recommendation
Expect equities and corporate bonds to outperform
· Equities. Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group, says the market trend remains upward in the short term despite economic risks on the horizon. Although market valuations are not excessive at current levels, they are already pricing in a significant rebound in earnings in 2010. The market is not overpriced, just overbought in the short term; we would be adding weight in cyclical holdings on any market pullback.
Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, highlights the following recommendations: Term Call – below benchmark duration. Sector Call – underweight Canadas, overweight Municipals and Provincials, neutral on Corporates. Currency Call – favour the C$, as well as the A$, which is expected to outperform. Alternative Strategies – overweight high yield, overweight Emerging Markets Debt, underweight inflation protected bonds.
Portfolio strategy. Vincent Delisle, Scotia Capital’s Portfolio Strategist, writes, “we are in a higher-highs/higher-lows environment and recommend buying the dips, not selling the rallies. Our longer term stance remains positive and we expect equities and corporate bonds to outperform Treasuries over the next 12-18 months.”
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.
seek other alternatives to traditional fund investments
Many mutual fund investors have seen the recovery of global markets, but have yet to see their investments following suit. I have frequently discussed the impact of high management fees on mutual fund investors, and this is part of the story. Another major drag on many fund companies is the redemptions they have suffered through the downturn. In other words, when investors want out of their fund holdings, the manager is forced to sell, regardless of whether it is the right time to do so. and I believe many fund families will continue to suffer from this as investors seek other alternatives to traditional fund investments.
Wednesday, September 16, 2009
reason for optimism this week
There is reason for optimism this week, as we have seen most global
markets reaching new highs for the year. It is important to keep
things in perspective. The Dow in New York is currently approaching
the level it reached a decade ago. The Nasdaq is still sixty percent
below its all time high. The long term returns of many international
markets are even worse. As the market recovers, it may be tempting to
simply let things stay the same, believing this is following the
conventional wisdom of buying and holding. In fact, this approach has
not worked for at least a decade, and I believe you should discuss
your long term strategy with your advisor. If you are looking for a
second opinion, 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
markets reaching new highs for the year. It is important to keep
things in perspective. The Dow in New York is currently approaching
the level it reached a decade ago. The Nasdaq is still sixty percent
below its all time high. The long term returns of many international
markets are even worse. As the market recovers, it may be tempting to
simply let things stay the same, believing this is following the
conventional wisdom of buying and holding. In fact, this approach has
not worked for at least a decade, and I believe you should discuss
your long term strategy with your advisor. If you are looking for a
second opinion, 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
Monday, September 14, 2009
consider a short term bond fund
On Saturday, I discussed te fact that money market funds and cashable
GICs have reached a point where they are paying essentially no yield.
This is definitely motivating investors to seek alternatives for their
short term, secure money. In essence, the returns are the equivalent
of putting your cash under your mattress. One interesting alternative
that you may consider is a short term bond fund. There are several
funds that are focused on high quality investment grade bonds, which
offer significantly better returns than a money market fund, with very
little extra risk. If you are looking for a home for your "safe"
money, you may want to consider a short term bond fund i n your
portfolio. Are you looking for a second opinion?
GICs have reached a point where they are paying essentially no yield.
This is definitely motivating investors to seek alternatives for their
short term, secure money. In essence, the returns are the equivalent
of putting your cash under your mattress. One interesting alternative
that you may consider is a short term bond fund. There are several
funds that are focused on high quality investment grade bonds, which
offer significantly better returns than a money market fund, with very
little extra risk. If you are looking for a home for your "safe"
money, you may want to consider a short term bond fund i n your
portfolio. Are you looking for a second opinion?
Friday, September 11, 2009
Wareham Weekly Insights
The big picture
Canada bouncing back, but rates stay on hold
Canada’s economy is recovering faster than previously thought, the Bank of Canada (BoC) said Thursday. Nonetheless, the BoC kept its lending rate at an all-time low of 0.25%, and renewed its pledge to hold rates until mid-2010. Canada’s banks were ranked the soundest in the world for the second year in a row by the World Economic Forum, while U.S. banks were ranked 108th.
At London’s G20 meeting, finance ministers agreed the world economy is stabilizing, but recovery is not established enough to start unwinding stimulus programs. Finance Minister Jim Flaherty said, “We agreed that we are not out of the woods . . . We must all remain focused on fully implementing our stimulus packages.” The International Monetary Fund called Canada’s economic strategy “large, timely, well-diversified and structured for maximum effectiveness.” The IMF raised its estimate for global economic growth in 2010 to 2.5%, from 1.9%. Rating agency Moody’s said on Tuesday that the U.S. government’s triple-A credit rating was safe and that the U.K. and Spain are unlikely to lose their top credit ratings.
Markets
Stocks rise as oil and metals rally; gold breaks $1,000
Rising prices for oil and metals helped push the TSX index to an 11-month high this week and the S&P index extended its gain to five straight days, its longest winning streak since November. Oil prices rose 6% since last Thursday and gold rallied above $1,000 an ounce for only the third time in history. The Canadian dollar surged as high as 93.56 cents, but fell back as investors weighed the risk of central bank intervention.
First Solar struck a 10-year deal with the Chinese government to build the world’s largest solar field. Solar panels will blanket a desert area larger than Manhattan and generate enough energy to light three million homes. Apple chief executive Steve Jobs unveiled a new iPod Nano equipped with a video camera and announced price cuts. In merger and acquisition activity, Telus bought Black’s Photo, adding 113 stores to its retail base; Cadbury rejected Kraft’s merger offer of US$16.7 billion; T-Mobile and Orange will merge to create the U.K.’s biggest wireless operator; and Swedish sports car maker Koenigsegg has teamed up with Beijing Automotive Industry Holding Co. (BAIC) to buy Saab from General Motors.
Our recommendation
Buying the dips, not selling the rallies
· Equities. Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group, says the market trend remains upward in the short term despite economic risks on the horizon. Although market valuations are not excessive at current levels, they are already pricing in a significant rebound in earnings in 2010. The market is not overpriced, just overbought in the short term; we would be adding weight in cyclical holdings on any market pullback.
Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, highlights the desk’s current recommendations as follows: Term Call – below benchmark duration. Sector Call – underweight Canadas, overweight Municipals and Provincials, neutral on Corporates. Currency Call – favour the C$, as well as the A$, which is expected to outperform. Alternative Strategies – underweight high yield, overweight Emerging Markets Debt, neutral on inflation protected bonds.
Portfolio strategy. Vincent Delisle, Scotia Capital’s Portfolio Strategist, writes, “we are in a higher-highs/higher-lows environment and recommend buying the dips, not selling the rallies. Our longer term stance remains positive and we expect equities and corporate bonds to outperform Treasuries over the next 12-18 months.”
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.
Canada bouncing back, but rates stay on hold
Canada’s economy is recovering faster than previously thought, the Bank of Canada (BoC) said Thursday. Nonetheless, the BoC kept its lending rate at an all-time low of 0.25%, and renewed its pledge to hold rates until mid-2010. Canada’s banks were ranked the soundest in the world for the second year in a row by the World Economic Forum, while U.S. banks were ranked 108th.
At London’s G20 meeting, finance ministers agreed the world economy is stabilizing, but recovery is not established enough to start unwinding stimulus programs. Finance Minister Jim Flaherty said, “We agreed that we are not out of the woods . . . We must all remain focused on fully implementing our stimulus packages.” The International Monetary Fund called Canada’s economic strategy “large, timely, well-diversified and structured for maximum effectiveness.” The IMF raised its estimate for global economic growth in 2010 to 2.5%, from 1.9%. Rating agency Moody’s said on Tuesday that the U.S. government’s triple-A credit rating was safe and that the U.K. and Spain are unlikely to lose their top credit ratings.
Markets
Stocks rise as oil and metals rally; gold breaks $1,000
Rising prices for oil and metals helped push the TSX index to an 11-month high this week and the S&P index extended its gain to five straight days, its longest winning streak since November. Oil prices rose 6% since last Thursday and gold rallied above $1,000 an ounce for only the third time in history. The Canadian dollar surged as high as 93.56 cents, but fell back as investors weighed the risk of central bank intervention.
First Solar struck a 10-year deal with the Chinese government to build the world’s largest solar field. Solar panels will blanket a desert area larger than Manhattan and generate enough energy to light three million homes. Apple chief executive Steve Jobs unveiled a new iPod Nano equipped with a video camera and announced price cuts. In merger and acquisition activity, Telus bought Black’s Photo, adding 113 stores to its retail base; Cadbury rejected Kraft’s merger offer of US$16.7 billion; T-Mobile and Orange will merge to create the U.K.’s biggest wireless operator; and Swedish sports car maker Koenigsegg has teamed up with Beijing Automotive Industry Holding Co. (BAIC) to buy Saab from General Motors.
Our recommendation
Buying the dips, not selling the rallies
· Equities. Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group, says the market trend remains upward in the short term despite economic risks on the horizon. Although market valuations are not excessive at current levels, they are already pricing in a significant rebound in earnings in 2010. The market is not overpriced, just overbought in the short term; we would be adding weight in cyclical holdings on any market pullback.
Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, highlights the desk’s current recommendations as follows: Term Call – below benchmark duration. Sector Call – underweight Canadas, overweight Municipals and Provincials, neutral on Corporates. Currency Call – favour the C$, as well as the A$, which is expected to outperform. Alternative Strategies – underweight high yield, overweight Emerging Markets Debt, neutral on inflation protected bonds.
Portfolio strategy. Vincent Delisle, Scotia Capital’s Portfolio Strategist, writes, “we are in a higher-highs/higher-lows environment and recommend buying the dips, not selling the rallies. Our longer term stance remains positive and we expect equities and corporate bonds to outperform Treasuries over the next 12-18 months.”
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.
investors requiring secure income should look further
Yesterday, the Bank Of Canada reaffirmed its commitment to maintaining
record low interest rates well into next year. This is great news for
consumers and homeowners, but leaves investors facing the potential of
near zero interest on their secure investments. In this environment,
investors counting on stable income may find it difficult to generate
cashflow. I believe investors requiring secure income should look
further, and consider three options. First, they should look at good
quality corporate bonds. Second, the preferred shares issued by major
financial firms offer attractive yield. Finally, guaranteed
withdrawal benefit products like Income Plus give stable income, with
exposure to the equity markets. Ultimately, security concious
investors have options, but low interest rates really do complicate
things.
Do you want to discuss your alternatives?
Have you outgrown your mutual funds?
record low interest rates well into next year. This is great news for
consumers and homeowners, but leaves investors facing the potential of
near zero interest on their secure investments. In this environment,
investors counting on stable income may find it difficult to generate
cashflow. I believe investors requiring secure income should look
further, and consider three options. First, they should look at good
quality corporate bonds. Second, the preferred shares issued by major
financial firms offer attractive yield. Finally, guaranteed
withdrawal benefit products like Income Plus give stable income, with
exposure to the equity markets. Ultimately, security concious
investors have options, but low interest rates really do complicate
things.
Do you want to discuss your alternatives?
Have you outgrown your mutual funds?
Wednesday, September 9, 2009
Planning For Retirement
US President Obama will be addressing his nation this evening,
concentrating on their healthcare crisis. Although the Canadian
system is much different, we have our own problems. Retirees are
facing spiraling costs for services not covered by the Canadian
system. This is one of the more difficult elements of planning for
retirement, as it is tough to estimate the impact these expenses will
have over a lengthy retirement. The greatest financial impact is
likely to come from the growing cost of nursing home care. A
relatively new solution is the emergence of insurance solutions that
may help offset the cost of in home or nursing home care. Although
these insurance plans will not work for everyone, I believe they will
form an important part of financial plans moving forward.
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
concentrating on their healthcare crisis. Although the Canadian
system is much different, we have our own problems. Retirees are
facing spiraling costs for services not covered by the Canadian
system. This is one of the more difficult elements of planning for
retirement, as it is tough to estimate the impact these expenses will
have over a lengthy retirement. The greatest financial impact is
likely to come from the growing cost of nursing home care. A
relatively new solution is the emergence of insurance solutions that
may help offset the cost of in home or nursing home care. Although
these insurance plans will not work for everyone, I believe they will
form an important part of financial plans moving forward.
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
Friday, September 4, 2009
Wareham Weekly Insights
The big picture
Global recovery slowly takes root
“It is a sign that we are on the path to economic recovery,” said U.S. President Obama, after a survey showed the U.S. manufacturing sector grew in August following 18 consecutive monthly declines. Nevertheless, the U.S. jobless rate in
August climbed to 9.7%, the highest since 1983, and employers cut another 216,000 jobs, although fewer than in July.
Australia’s economy grew strongly, expanding 0.6% in the second quarter – the best result among developed countries. However, this did not prompt the Reserve Bank of Australia to change its key interest rate. The European Central Bank also left interest rates at a record low and signalled it’s in no rush to withdraw emergency stimulus measures. Finance ministers from the Group of 20 meet in London on the weekend to draft a strategy to keep the economic momentum going. The IMF increased its estimate for global economic growth to slightly less than 3% in 2010, up from 2.5% in July. Two million buyers took advantage of Germany’s car scrapping rebate, which expired on Wednesday, driving the country’s auto sales up 28% in August. Some worry that 2010 sales could slump as many drivers rushed to take advantage of 2009 sales incentives. In the U.S., lacklustre back-to-school sales hinted that retailers may be facing another tough holiday season.
Markets
Markets tumble, then climb – gold closes in on $1,000
China’s key stock index fell 6.7% early in the week knocking European and North American stock markets lower along with the price of oil. Stocks rose again on Thursday, as U.S. chain stores reported surprising sales that topped projections, spurring the S&P past the 1,000 mark. Meanwhile, the price of gold jumped to a six-month high of $999.50/ounce.
Bombardier saw its second-quarter profit decline by $100 million – less than analysts had expected – as its aerospace division delivered fewer planes than a year ago. In technology news, new hardware and an alliance with Facebook could see Nokia catching up with rivals such as Apple and RIM. Apple is expected to unveil an updated line of iPods next week. Sony says it will introduce a 3-D television by the end of 2010; its TV division has lost money for five straight years. Disney will buy Marvel Entertainment for $4 billion, marrying princesses with superheroes in its biggest deal since buying Pixar in 2006 for $7.4 billion in stock.
Our recommendation
Rebalance portfolios to buy low, sell high
· Equities. Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group, says the market trend remains upward in the short term despite economic risks on the horizon. Although market valuations are not excessive at current levels, they are already pricing in a significant rebound in earnings in 2010. The market is not overpriced, just overbought in the short term; we would be adding weight in cyclical holdings on any market pullback.
Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, highlights the desk’s current recommendations as follows: Term Call – below benchmark duration. Sector Call – underweight Canadas, overweight Municipals and Provincials, neutral on Corporates. Currency Call – favour the C$, as well as the A$, which is expected to outperform. Alternative Strategies – underweight high yield, overweight Emerging Markets Debt, neutral on inflation protected bonds.
Portfolio strategy. Vincent Delisle, Scotia Capital's Portfolio Strategist, writes "we are in higher high/higher lows environment and recommend buying the dips, not selling the rallies. Our longer term stance remains positive and we expect equities and corporate bonds to outperform Treasuries over the next 12-18 months."
The month in review
August: Major economies continue to stabilize as rates stay on hold
The U.S. Federal Reserve declared that U.S. economic activity is “levelling out.” The central bank held its key lending rate at a record low, and signalled it would end one of its stimulus programs (buying U.S. Treasury securities) at the end of October. Federal Reserve Chairman Ben Bernanke declared that the U.S. economy is on the verge of a long-awaited recovery after enduring a brutal recession and the worst financial crisis since the Great Depression. Bernanke was re-appointed for a second term.
In Europe, Germany and France unexpectedly returned to growth in the second quarter. Good news also came out of the U.K. – data showed house prices stabilized, and the Royal Institution of Chartered Surveyors now predicts the average house price will rise by the end of the year, reversing its forecast of a 10% to 15% decline. In Canada, retail sales jumped 1% from May to June, but remain 4.4% lower than a year ago. With inflation at a 56-year low, consumer spending remains weak, and some economists say it could be years before companies begin to raise prices.
Canadian banks shine
In August, the Royal Bank reported record profits while earnings from the Bank of Montreal, TD Bank and the Bank of Nova Scotia also beat expectations. Financials were the largest contributor to the TSX Index last month and account for 51% of the gains year-to-date.
Loonie strength prompts Bank of Canada warning
As the Canadian dollar hit a 10-month high versus the U.S., the Bank of Canada (BoC) warned again that it is prepared to intervene to stop the sharp rise of the loonie from derailing the economic recovery. The BoC has not intervened in foreign exchange markets in more than 10 years.
TSX up for the sixth straight month
In August, the TSX broke through 11,000 to a 10-month high, and the S&P 500 rose above 1,000 for the first time in nine months. Both indices fell back, but still finished the month slightly up. The Canadian index is up 20.9% year-to-date with the top 10 contributors accounting for 64% of the gains (Royal Bank, TD Bank, Research In Motion, Bank of Nova Scotia, Bank of Montreal, Teck Resources, Suncor, Petro-Canada, Canadian Natural Resources and Talisman).
Auto industry soldiers on
The U.S. government’s $3-billion “cash for clunkers” program drove 700,000 auto sales, prompting Ford to hike factory output. Toyota will slash production by 580,000 vehicles – 6% of global capacity – despite capturing 19% of the sales from the program. General Motors claims its new electric car, the Chevy Volt, will get an unprecedented 230 miles per gallon (100 km/l), four times the mileage of Toyota’s Prius. It will go on sale in late 2010 for US$40,000. Meanwhile, Volkswagen announced that it will pay US$4.7 billion for a 42% stake in Porsche as it executes a gradual merger.
Apple heats up
As the iPhone prepares for its debut in China – the world’s largest cell phone market – Apple is investigating reports from France of iPhone screens exploding, apparently because of overheated lithium ion batteries. Meanwhile, analysts speculate that Apple is working on a new multimedia tablet that will let people access movies and TV, games, the Internet and books.
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.
Global recovery slowly takes root
“It is a sign that we are on the path to economic recovery,” said U.S. President Obama, after a survey showed the U.S. manufacturing sector grew in August following 18 consecutive monthly declines. Nevertheless, the U.S. jobless rate in
August climbed to 9.7%, the highest since 1983, and employers cut another 216,000 jobs, although fewer than in July.
Australia’s economy grew strongly, expanding 0.6% in the second quarter – the best result among developed countries. However, this did not prompt the Reserve Bank of Australia to change its key interest rate. The European Central Bank also left interest rates at a record low and signalled it’s in no rush to withdraw emergency stimulus measures. Finance ministers from the Group of 20 meet in London on the weekend to draft a strategy to keep the economic momentum going. The IMF increased its estimate for global economic growth to slightly less than 3% in 2010, up from 2.5% in July. Two million buyers took advantage of Germany’s car scrapping rebate, which expired on Wednesday, driving the country’s auto sales up 28% in August. Some worry that 2010 sales could slump as many drivers rushed to take advantage of 2009 sales incentives. In the U.S., lacklustre back-to-school sales hinted that retailers may be facing another tough holiday season.
Markets
Markets tumble, then climb – gold closes in on $1,000
China’s key stock index fell 6.7% early in the week knocking European and North American stock markets lower along with the price of oil. Stocks rose again on Thursday, as U.S. chain stores reported surprising sales that topped projections, spurring the S&P past the 1,000 mark. Meanwhile, the price of gold jumped to a six-month high of $999.50/ounce.
Bombardier saw its second-quarter profit decline by $100 million – less than analysts had expected – as its aerospace division delivered fewer planes than a year ago. In technology news, new hardware and an alliance with Facebook could see Nokia catching up with rivals such as Apple and RIM. Apple is expected to unveil an updated line of iPods next week. Sony says it will introduce a 3-D television by the end of 2010; its TV division has lost money for five straight years. Disney will buy Marvel Entertainment for $4 billion, marrying princesses with superheroes in its biggest deal since buying Pixar in 2006 for $7.4 billion in stock.
Our recommendation
Rebalance portfolios to buy low, sell high
· Equities. Stephen Uzielli, Portfolio Manager, Portfolio Advisory Group, says the market trend remains upward in the short term despite economic risks on the horizon. Although market valuations are not excessive at current levels, they are already pricing in a significant rebound in earnings in 2010. The market is not overpriced, just overbought in the short term; we would be adding weight in cyclical holdings on any market pullback.
Fixed income. Chris Kennedy, Associate Director, Portfolio Advisory Group, highlights the desk’s current recommendations as follows: Term Call – below benchmark duration. Sector Call – underweight Canadas, overweight Municipals and Provincials, neutral on Corporates. Currency Call – favour the C$, as well as the A$, which is expected to outperform. Alternative Strategies – underweight high yield, overweight Emerging Markets Debt, neutral on inflation protected bonds.
Portfolio strategy. Vincent Delisle, Scotia Capital's Portfolio Strategist, writes "we are in higher high/higher lows environment and recommend buying the dips, not selling the rallies. Our longer term stance remains positive and we expect equities and corporate bonds to outperform Treasuries over the next 12-18 months."
The month in review
August: Major economies continue to stabilize as rates stay on hold
The U.S. Federal Reserve declared that U.S. economic activity is “levelling out.” The central bank held its key lending rate at a record low, and signalled it would end one of its stimulus programs (buying U.S. Treasury securities) at the end of October. Federal Reserve Chairman Ben Bernanke declared that the U.S. economy is on the verge of a long-awaited recovery after enduring a brutal recession and the worst financial crisis since the Great Depression. Bernanke was re-appointed for a second term.
In Europe, Germany and France unexpectedly returned to growth in the second quarter. Good news also came out of the U.K. – data showed house prices stabilized, and the Royal Institution of Chartered Surveyors now predicts the average house price will rise by the end of the year, reversing its forecast of a 10% to 15% decline. In Canada, retail sales jumped 1% from May to June, but remain 4.4% lower than a year ago. With inflation at a 56-year low, consumer spending remains weak, and some economists say it could be years before companies begin to raise prices.
Canadian banks shine
In August, the Royal Bank reported record profits while earnings from the Bank of Montreal, TD Bank and the Bank of Nova Scotia also beat expectations. Financials were the largest contributor to the TSX Index last month and account for 51% of the gains year-to-date.
Loonie strength prompts Bank of Canada warning
As the Canadian dollar hit a 10-month high versus the U.S., the Bank of Canada (BoC) warned again that it is prepared to intervene to stop the sharp rise of the loonie from derailing the economic recovery. The BoC has not intervened in foreign exchange markets in more than 10 years.
TSX up for the sixth straight month
In August, the TSX broke through 11,000 to a 10-month high, and the S&P 500 rose above 1,000 for the first time in nine months. Both indices fell back, but still finished the month slightly up. The Canadian index is up 20.9% year-to-date with the top 10 contributors accounting for 64% of the gains (Royal Bank, TD Bank, Research In Motion, Bank of Nova Scotia, Bank of Montreal, Teck Resources, Suncor, Petro-Canada, Canadian Natural Resources and Talisman).
Auto industry soldiers on
The U.S. government’s $3-billion “cash for clunkers” program drove 700,000 auto sales, prompting Ford to hike factory output. Toyota will slash production by 580,000 vehicles – 6% of global capacity – despite capturing 19% of the sales from the program. General Motors claims its new electric car, the Chevy Volt, will get an unprecedented 230 miles per gallon (100 km/l), four times the mileage of Toyota’s Prius. It will go on sale in late 2010 for US$40,000. Meanwhile, Volkswagen announced that it will pay US$4.7 billion for a 42% stake in Porsche as it executes a gradual merger.
Apple heats up
As the iPhone prepares for its debut in China – the world’s largest cell phone market – Apple is investigating reports from France of iPhone screens exploding, apparently because of overheated lithium ion batteries. Meanwhile, analysts speculate that Apple is working on a new multimedia tablet that will let people access movies and TV, games, the Internet and books.
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.
Review your portfolio
The last long weekend of the summer is upon us. With children back to school, and vacations done, this is a good time to be reviewing your portfolio. If you are ready to review your situation, here are are few key considerations. First, are you really comfortable with your level of risk. Second, have you accumulated enough wealth to be on track for your long term goals. Finally, are you sure that you are in the right type of investment to best suit your needs. If you have sev 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
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, September 2, 2009
September is off to its typical start
September is off to its typical start, with significant losses in most global markets. Improving economic news has been offset by profit taking, and it may be tempting to worry about your portfolio if we get the sell off I expect. In fact, the positive economic signs support buying investments for the long term. I believe September and October will be an excellent opportunity to rebalance your portfolio,especially if you have cash on the sidelines. Ideally, you should sit down with your advisor, and prepare for the opportunity that may arise if we get continued weakness over the next couple of months. If you feel you need help preparing for the future, 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 arethose of the author, not Scotia Capital. ScotiaMcLeod is a division ofScotia Capital, member CIPF
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 arethose of the author, not Scotia Capital. ScotiaMcLeod is a division ofScotia Capital, member CIPF
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