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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
June 30 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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14,553
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-0.5 %
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7.4 %
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S&P 500
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2,063
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0.9 %
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11.4 %
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Euro Stoxx 50
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3,424
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8.8 %
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1.2 %
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MCSI emerging markets
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972
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1.7 %
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-4.6 %
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Oil ($US/Barrel)
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$ 59.47
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6.9 %
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-41.6 %
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Gold ($US/oz)
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$ 1,172
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-1.1 %
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-1.9 %
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$CAD / $USD
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$ 0.80
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-6.42 %
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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
Cash is no longer king - and never should be
Are you one of the millions of investors holding larger than normal amounts of cash for safety due to markets uncertainty? It may be surprising to some, but if your primary goal is to preserve your wealth, investing and maintaining exposure to the markets may be a better option than keeping your money in cash in the long term.
"The one thing I will tell you is the worst investment you can have is cash," Buffett is quoted as saying. "Everybody is talking about cash being king and that sort of thing. Cash is going to become worthless over time. But good businesses are going to become worth more over time."
How much cash you should keep on hand depends on your unique circumstances. But just remember: Don't let a single-minded focus on cash obscure the benefits of diversification, which is the real king.
Read more
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Tax & Estate Planning Strategies
Three retirement mistakes to avoid
Six out of 10 people have experienced major life events that challenged their original retirement planning goals. Flexibility and preparation are crucial for clients to overcome obstacles in their retirement years.
Read more
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In the news
Worried about Grexit?
What would happen if Greece exits the euro? Nobody knows, because euro membership is supposed to be irreversible. There's no legal framework for how a country would move out of the Eurozone. A Greek exit wouldn't happen automatically, or immediately, if the country defaults. The process would be gradual, thereby lessening market shocks.
Another reason markets wouldn't freefall, he adds, is that the Eurozone has put a number of new safeguards in place. For instance, its banking system is better capitalized. "So it's less fragile to a Greek collapse. But, in the short term, fears are still creating volatility and downside risk for equity markets.
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Europe is primed for a profit margin renaissance
Beyond short-term risks linked to Greek debt talks, rebounding profit margins in Europe could help the region's stocks outpace equities in the U.S., where margins may be peaking. Analysts say the fall in the euro over the past year, combined with lower commodity prices and cheaper financing costs for companies are set to fuel a revival in European margins.
European stocks' brisk rally in the first part of the year has stalled since April amid worries over Greece. The Stoxx 600 is still up 12 percent in 2015, however. The S&P 500 has only risen about 3 percent.
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Global investing: where to find opportunities
The historically weak euro is likely to get a boost as the European Central Bank carries out its quantitative easing program. It should favor undervalued companies based in the European Union. The EU's macroeconomic environment will begin to help competitively positioned companies domiciled in Europe realize their growth potential through productivity enhancements, savings in labor costs and increased access to capital.
Investment opportunities in European equities have more to do with individual companies rather than the countries where they are headquartered. Why? Because globalization has changed the currency exposure of most large-capitalization stocks.
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Eddy Farina, Fin. Pl., CIM
®
Senior Vice President, Investment Advisor 514.981.5727
" Choose a job you love, and you will never have to work a day in your life "
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