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Welcome,
We are very pleased to send you our monthly financial newsletter to keep you abreast of financial markets and world economy. We hope that you will enjoy reading these articles. As always, we welcome your comments and questions.
This month, Gareth Watson, Director of the Investment Management Group at Richardson GMP, shares his view on the oil sector and how it impacts investors' portfolio.
To watch the interview, click here.
Sincerely,
Team Beauregard Farina Tourangeau
1250 boul. René-Lévesque West
Suite 1500
Montréal, QC
H3B 4W8
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Markets Returns
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Value as of
Jan. 30 2015*
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2015
Year to date
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2014
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S&P / TSX
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14,673
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0.3 %
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7.4 %
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S&P 500
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1,995
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-3.1 %
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11.4 %
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Euro Stoxx 50
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3,351
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6.5 %
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1.2 %
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MCSI emerging markets
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962
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0.6 %
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-4.6 %
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Oil ($US/Barrel)
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$ 48.24
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-10.2 %
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-41.6 %
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Gold ($US/oz)
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$ 1,279
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8.0 %
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-1.9 %
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$CAD / $USD
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$ 0.79
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-7.9 %
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-8.5 %
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Source : Bloomberg, Richardson GMP Limited
*Values are in local currency
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Investment Strategies
Global investing reinvented
Few would disagree that it makes sense to invest globally. Where views differ is on how best to go about it, and how to define diversification. According to conventional thinking, geographic diversity is based on where the company is domiciled. There's another school of thought as to what constitutes going global. It holds that what matters most in diversifying geographically is where a company earns its revenues.
Among other things, this reinvention of the concept of global investing attaches greater importance to having exposure to emerging markets, whose growing economic heft has far outpaced the stock-market capitalizations of companies domiciled in these countries. However, revenue-based global investing takes into account the global reach of multinational companies. In fact, multinationals based in developed markets may be among the best ways to obtain exposure to fast-growing developing markets.
Read more
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Tax & Estate Planning Strategies
When to use spousal RRSP
Canadian couples with significantly different incomes may want to consider using a spousal RRSP to help cut their tax bill in retirement. The plans are most beneficial in relationships where one spouse earns significantly more than the other.
Read more
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In the news
Bank of Canada lowers rate to 0.75%
The Bank of Canada is lowering its target for the overnight rate by 0.25% to 0.75%. This decision is in response to the recent sharp drop in oil prices. Oil's sharp decline in the past six months is expected to boost global economic growth, especially in the United States, says the bank. Persistent headwinds from deleveraging and lingering uncertainty will influence the extent to which some oil-importing countries benefit from lower prices.
The oil price shock is occurring against a backdrop of solid and more broadly-based growth in Canada in recent quarters. Outside the energy sector, we are beginning to see the anticipated sequence of increased foreign demand, stronger exports, improved business confidence and investment, and employment growth
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What European QE means for portfolios
Two weeks ago the ECB launched an aggressive €1.1-trillion QE program in a bid to reverse the Eurozone's dismal economic fortunes.We know QE will depreciate the currency, and it clearly is [doing so]. It will [also] keep interest rates artificially low for a period. It's not a no-brainer that European equities will get the same boost U.S. stocks got from the Fed's QE program.
There's a common misperception that European equities have been cheap underperformers for some time. But ever since ECB president Mario Draghi pronounced in July, 2012 that he'd do "whatever it takes" to save the continent's single currency, the European market's gone up about 70%,
Read more
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3 reasons markets are volatile
Markets are more volatile these days for several reasons. The last two times the end of QE in the U.S occurred, there was more volatility. If you take the training wheels off the market, it has to act on its own for a little while. So it's natural to expect some volatility.
Leverage ratios have increased. Due to long-term stability, there's excess investment in some areas of the market. Once markets stabilize, interest rates have to rise. They have been too low and below normalized levels, he explains, and the returns in the bond market have been too strong. And now, we have a new bout of inflationary pressures.
Read more
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Eddy Farina, Fin. Pl., CIM
®
Senior Vice President, Investment Advisor 514.981.5727
" The price of discipline is always less than the pain of regret "
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514.981.5727 |
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Richardson GMP embraces fiduciary excellence. Read more
DISCLAIMER
The opinions expressed in this report are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Richardson GMP Limited or its affiliates. Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Past performance is not indicative of future results.
Richardson GMP Limited, Member CIPF
Richardson is a trade-mark of James Richardson & Sons, Limited. GMP is a registered trade-mark of GMP Securities L.P. Both used under license by Richardson GMP Limited.
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