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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.
Several events occurred last month especially with Greece and China. Our Internal Research Team draws a portrait of the situation and how it impacts portfolios in their latest Quarterly Outlook.
To access the full report, click here.
Sincerely,
Team Beauregard Farina Tourangeau
1250 boul. René-Lévesque West
Suite 1500
Montréal, QC
H3B 4W8
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Market Returns
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Value as of
July 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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14,468
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-1.1 %
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7.4 %
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S&P 500
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2,104
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2.2 %
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11.4 %
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Euro Stoxx 50
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3,601
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14.4 %
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1.2 %
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MCSI emerging markets
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902
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-5.7 %
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-4.6 %
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Oil ($US/Barrel)
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$ 47.12
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-18.1 %
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-41.6 %
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Gold ($US/oz)
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$ 1,095
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-7.7 %
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-1.9 %
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$CAD / $USD
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$ 0.77
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-10.7 %
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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
Is This the Beginning Of The End For Dividend ETFs?
Exchange-traded funds that employ a variety of strategies to invest in dividend-paying stocks have been a no-brainer since the financial crisis, as income investors have confronted artificially low interest rates. But after years of inflows that swelled assets to $100 billion, dividend ETFs have seen an outflow of $2.7 billion this year.
Some argue it's a shift in investor focus. Investors are leaving the U.S. equity market, the reasoning goes, to surf central bank liquidity waves in Europe and Japan, which have sent those regions' stocks soaring. However, the expectation of higher rates is likely playing a bigger role in the outflows. Interest rates have been climbing steadily since the end of January.
Read more
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Tax & Estate Planning Strategies
Discussing Inheritance
A majority of Canadians expect to leave assets upon death, but when it comes to having conversations about transferring that wealth, many say they haven't discussed it with their families or financial advisors.
Read more
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In the news
Greek Deal Was the Easy Part for Both Sides
The deal announced Monday morning has averted, at least for now, Greece's immediate exit from the euro zone -- an outcome that no European leader was yet willing to press to its increasingly logical conclusion. Greece undertook important policy commitments in return for about $100 billion in incremental external financing. But the agreement doesn't provide yet the type of debt relief the country desperately needs.
Reflecting the sad recent history of Greece's relationship with Europe, which have eroded trust and mutual respect, the deal imposes intrusive monitoring and micromanagement by European institutions and the International Monetary Fund.
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How to Explain China's Stock Market Crash
Chinese stocks crashed 8.5% on Monday, July 27, 2015, but the headline loss doesn't even begin to describe it. More than two-thirds of the stocks on Shanghai Composite hit the 10% floor and trading in those was stopped. The Chinese stock market is now down 28% from its peak in June. Events like the 8.5% daily drop are not rational responses to economic news; they are due to the feedback loop of losses on the over-levered market.
Read more
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Money Managers Push International Funds Ahead Of U.S. Rate Hike
With a U.S. interest rate hike on the horizon, money managers are reaching out to clients and encouraging them to lighten up on bonds and other rate-sensitive assets.
The Federal Reserve is expected to raise rates within the next several months, the first such move in nearly nine years. Mutual funds focused on dividend-paying stocks and bonds -- popular safe havens for retirees and near-retirees -- stand to lose value in the rising rate environment.
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Eddy Farina, Fin. Pl., CIM
®
Senior Vice President, Investment Advisor 514.981.5727
" Things don't have to change the world to be important "
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