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

Markets Returns

Value as of

Feb. 28 2015*


Year to date




4.1 %

7.4 %

S&P 500


2.2 %

11.4 %

Euro Stoxx 50 


14.4 %

1.2 %

MCSI emerging markets


3.6 %

-4.6 %

Oil ($US/Barrel)

$ 49.76

-8.3 %

-41.6 %

Gold ($US/oz)

$ 1,213

2.4 %

-1.9 %


$ 0.80

-11.1 %

-8.5 %

Source : Bloomberg, Richardson GMP Limited

*Values are in local currency

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

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

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



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. 


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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

Eddy Farina, Fin. Pl., CIM
Senior Vice President, Investment Advisor

" The fundamental law of investing 
is the uncertainty of the future "


- Peter Bernstein

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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

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