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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.
Reminder: To access our new Quarterly Market Outlook produced by our Internal Research team, 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
May 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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15,014
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2.6 %
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7.4 %
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S&P 500
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2,107
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2.4 %
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11.4 %
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Euro Stoxx 50
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3,571
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13.5 %
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1.2 %
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MCSI emerging markets
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1,004
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5.0 %
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-4.6 %
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Oil ($US/Barrel)
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$ 60.30
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8.4 %
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-41.6 %
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Gold ($US/oz)
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$ 1,190
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0.4 %
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-1.9 %
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$CAD / $USD
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$ 0,80
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-6.75 %
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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
Europe is a re-emerging economy
Europe is now institutional investors' number one foreign investment target. This is a pivot point. We've never detected this level of positive sentiment on the part of North American institutional investors. It feels very much like a land grab. After a tepid decade, this level of investment enthusiasm implies that Europe is a re-emerging economy.
With interest rates at historically low levels, U.S. equities hitting record highs and a strong U.S. dollar, Europe, and foreign markets in general, gives these investors an opportunity to add value to their portfolios.
Read more
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Tax & Estate Planning Strategies
Cottage succession - Keeping it in the familly
Do you have a cottage that you want to transfer to future generations? Cherished memories you and your children have of building and rebuilding the dock, sleepovers with cousins and family dinners are all reasons to want to "keep it in the family. With that said, additional complexities may arise when a cottage is to be shared among multiple family members.
Read more
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In the news
CPP to invest more in emerging economies
The Canada Pension Plan Investment Board sees the United States as a key destination for investments in the near term, but expects to shift a bigger share of its assets to faster-growing emerging economies over time. We believe they will undoubtedly have ups and downs, but in the long run those economies will produce disproportionately higher growth than the developed economies of Europe and North America.
In the medium term, there are "excellent prospects" in the United States. We see more investment opportunities there than in other developed world markets.
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Increased risk for dividend-paying stocks
Financial advisors and investors traditionally favor dividend-paying stocks as a key allocation in any comprehensive retirement portfolio. However, they are not nearly as safe or as remunerative as many think.
Dividend-paying stocks are more interest-rate sensitive than popularly thought and they will perform poorly as rates rise. Investors owning these stocks as a substitute for bonds currently paying extremely low yields will likely lose value when rates rise, just like the bonds.
Read more
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Fund managers worried about valuations
Global fund managers are increasingly concerned about the risk of overvaluation in both bonds and equities. On the other hand, they believe that regions like Europe and Japan, remain undervalued. Institutional investors say the eurozone is the region they most want to overweight in the coming 12 months.
These views come against a background of expected rate hikes by the U.S. Federal Reserve. With the Fed expected to start tightening monetary policy, investors also foresee currencies facing higher volatility
Read more
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Eddy Farina, Fin. Pl., CIM
®
Senior Vice President, Investment Advisor 514.981.5727
" Inspiration exists, but it must find you working "
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