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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.
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
Mar. 31 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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14,902
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1.8 %
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7.4 %
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S&P 500
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2,068
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0.4 %
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11.4 %
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Euro Stoxx 50
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3,697
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17.5 %
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1.2 %
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MCSI emerging markets
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975
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1.9 %
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-4.6 %
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Oil ($US/Barrel)
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$ 47.60
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-13.4 %
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-41.6 %
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Gold ($US/oz)
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$ 1,183
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-0.2 %
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-1.9 %
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$CAD / $USD
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$ 0.79
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-8.4 %
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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
European companies: Why invest now?
Major European companies have been discounted because of negative investor sentiment about economic prospects for the European Union (EU). As a result, strong companies with high growth potential appear undervalued relative to their U.S. counterparts.
There are three macroeconomic factors throughout the EU that should help those companies realize their growth potential and achieve higher valuations:
- A historically weak euro, which could help boost European exports;
- Accommodative monetary policy that's expected to stimulate the European Union's economy; and
- Labor market reforms that may lower costs, potentially enhancing productivity and corporate profitability.
Read more
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Tax & Estate Planning Strategies
Navigating the new rules for testamentary trust
Although upcoming changes to the tax treatment of testamentary trusts will eliminate certain tax-planning opportunities associated with these types of trusts, experts say they still represent valuable tools for many clients.
Read more
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In the news
Fund managers reducing allocation to US
Global fund managers have cut back their allocations to U.S. equities. The proportion of investors saying U.S. equities are overvalued has also reached its highest level since May 2000. With the move away from U.S. stocks, allocations to eurozone and Japanese equities have both increased. This move out of U.S. stocks comes amid growing anticipation of U.S. rate hikes.
Investor consensus suggests that the strong dollar will act as positive rather than a negative for the global economy and markets. More investors are also forecasting increases in both long- and short-term interest rates.
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Currency exposure: Hedge or No Hedge?
Turmoil in global currency markets is causing more investors to think about how such fluctuations impact the performance of their stocks. Aggressive monetary policy by global central banks has led to the fast depreciation in certain currencies.
Over the past year, the Brazilian real has slid 43%, the euro has fallen over 20%, and the Japanese yen has fallen almost 15%. As a result, more investors are deciding to invest globally, but with hedged currency exposure. There is uncertainty about the future of the euro, and there could be more volatility to come. We believe this makes Europe an attractive place to neutralize currency exposure.
Read more
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3 reasons the Euro is dropping
The euro is notching one milestone after another as it drops against major currencies. It hit a 12-year low against the dollar and many think its descent has further to go. Few, if any, in the markets anticipated that 25% decline. After all, the euro's value has managed to hold its own over the past few years of debt crisis, which at times even threatened the currency's very existence. So what's prompted the turnaround? The main reason is the European Central Bank has not only cut interest rates but also started creating more euros to put into the financial system.
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Eddy Farina, Fin. Pl., CIM
®
Senior Vice President, Investment Advisor 514.981.5727
" If we never did anything we shouldn't do,
we'd never feel good about doing the things we should "
- Frank Underwood (House of Cards)
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