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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.
Our Research Team at Richardson GMP just released their new market outlook for the first quarter of 2015 entitled "The Year of Divergence".
To read the complete report, click here
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
Feb. 28 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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15,234
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4.1 %
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7.4 %
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S&P 500
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2,105
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2.2 %
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11.4 %
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Euro Stoxx 50
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3,599
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14.4 %
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1.2 %
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MCSI emerging markets
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990
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3.6 %
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-4.6 %
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Oil ($US/Barrel)
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$ 49.76
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-8.3 %
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-41.6 %
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Gold ($US/oz)
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$ 1,213
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2.4 %
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-1.9 %
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$CAD / $USD
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$ 0.80
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-11.1 %
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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
Will global markets outpace the U.S.?
The average price-to-earnings ratio of the S&P 500 has risen from 13.5 to 17.5 on a forward earnings basis. But, this level of valuation appears to be fair, if not slightly overvalued, for the short-term, based on historical averages. That means people don't yet need to adopt defensive approaches when it comes to investing south of the border.
While geographic diversification hasn't worked for the past two or three years, it may be time for investors to increase exposure to regions of the world that have previously disappointed, such as Europe and emerging markets.
Read more
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Tax & Estate Planning Strategies
Understanding cross-border estate rules
Unlike Canada, the U.S. imposes an estate tax on worldwide estates worth more than $5.34 million. The U.S. also has different probate rules, and the process itself is generally slower and more expensive than probate procedures in Canada.
Read more
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In the news
Investors putting retirements at risk
Most Canadians say they need annual returns of 4% or higher to reach their retirement savings goals. Yet, nearly 70% of those polled primarily hold guaranteed investment products since they're wary of markets. Fear is still affecting investment decisions and keeping Canadians from meeting their goal.
The disconnect between investors' return expectations and portfolio allocations could be a barrier, especially as we see continued downward pressure on interest rates. The sharp increase in market volatility since oil prices collapsed has amplified people's markets fears
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Low oil boosts Emerging Markets
The outlook is bright for emerging markets. That's due to the decline in oil prices, as well as the European Central Bank's dedication to stimulating the Eurozone. Although dipping crude prices hurt domestically, emerging markets such as Indonesia, India and Turkey are large oil importers and, thus, major beneficiaries.
In mid-January, the ECB launched a €1.1-tillion QE program. The central bank's efforts continued efforts to boost Eurozone growth will not only have an impact on Europe, but will also have an indirect impact on other international markets.
Read more
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Why it pays to be patient
It found that a $10,000 investment made in the Canadian stock market in December 1992 and left in until December 31, 2013 would have netted the investor almost $49,000 at an 8.27% annual compound rate of return. This is the case even though the period was financially tumultuous thanks to the tech bubble in 2000 and the 2008-2009 financial crisis.
World events of the last six months have had an impact on the market. These include tension in Ukraine, economic problems in Europe and a recent drop in oil prices. This came to a head in October 2014 with a significant collective drop in the stock market. However, the correction was short-lived and the U.S. market has rebounded to record highs since mid-November of last year
Read more
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Eddy Farina, Fin. Pl., CIM
®
Senior Vice President, Investment Advisor 514.981.5727
" The fundamental law of investing
is the uncertainty of the future "
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