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

Markets Returns
              

Value as of

May 31 2015*

2015

Year to date

2014

S&P / TSX

15,014

2.6 %

7.4 %

S&P 500

2,107

2.4 %

11.4 %

Euro Stoxx 50 

3,571

13.5 %

1.2 %

MCSI emerging markets

1,004

5.0 %

-4.6 %

Oil ($US/Barrel)

$ 60.30

8.4 %

-41.6 %

Gold ($US/oz)

$ 1,190

0.4 %

-1.9 %

$CAD / $USD

$ 0,80

-6.75 %

-8.5 %

Source : Bloomberg, Richardson GMP Limited

*Values are in local currency

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

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

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 "

 

- Pablo Picasso
View our profile on LinkedIn
514.981.5727
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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 the author's 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. The comments contained herein are general in nature and are not intended to be, nor should be construed to be, legal or tax advice to any particular individual. Accordingly, individuals should consult their own legal or tax advisors for advice with respect to the tax consequences to them, having regard to their own particular circumstances. Insurance services are offered through Richardson GMP Insurance Services Limited in BC, AB, SK, MB, NWT, ON, QC,NB,NS,PEI and NL. Additional administrative support and policy management are provided by PPI Partners. Richardson GMP Limited is a member of Canadian Investor Protection Fund. 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.