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

Market Returns
              

Value as of

Sept 30 2015*

2015

Year to date

2014

S&P / TSX

13,307

-9.1 %

7.4 %

S&P 500

1,920

-6.7 %

11.4 %

Euro Stoxx 50 

3,101

-1.5 %

1.2 %

MCSI emerging markets

792

-17.2 %

-4.6 %

Oil ($US/Barrel)

$ 45.09

-22.4 %

-41.6 %

Gold ($US/oz)

$ 1,115

-6.1 %

-1.9 %

$CAD / $USD

$ 0.74

-13.5 %

-8.5 %

Source : Bloomberg, Richardson GMP Limited

*Values are in local currency

Investment Strategies  

Taming the panic around market volatility
Stock markets around the world plunged on Monday, Aug. 24 2015. The long awaited selloff in U.S. markets felt inevitable, as it broke the third longest run in history without a 10% correction. Stretched valuations, uncertainty about Fed policy, and volatility in China were the most-cited catalysts for the correction. Purely financial factors are indisputably a major factor behind increased market volatility, but behavioral factors are also at work, adding to the volatility.

U.S. investors have enjoyed three years of low volatility and six years of a bull market, so it seems a little greedy to complain too much about a 10% correction. It's easy to lose perspective on a day as turbulent as August 24. Try not to panic. Turning off the television is often a good idea.
  
Tax & Estate Planning Strategies 
 
How to get a tax-efficient cash-flow
Investors have two means to generate tax-free cash flow from investments: making withdrawals from a TFSA account, and holding T-class Corporate Class mutual funds in non-registered investment accounts.
 
In the news                                     

Global upheaval to continue into 2016 
Going into 2016, investors should expect muted returns and a dip in global growth. Experts are painting a bleak picture for global markets over the next 12 months. They predict volatility will rise, and that economies will experience several more years of recovery and transformation.

And over the next 20 years, the world will continue to see major demographic, political and economic changes. Those shifts will weigh on equities in the short and mid term.
  
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Are emerging markets worth the risk?
Currently, emerging market valuations are cheap. But investors may want to hold off on adding exposure. That's because emerging markets reached their cyclical peak in 2011, and are now facing more headwinds than tailwinds.

Emerging markets have really come off a peak, as opposed to getting to levels at which you're being adequately compensated for the risks you run. While a number of emerging market companies appear cheap, they tend to be a little less cheap when you think of them on a long-term, normal-earnings basis.

Read more
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Bank of Canada holds rate steady
The Bank of Canada is keeping its key interest rate on hold at 0.5% and says the resource sector continues to adjust to lower prices for oil and other commodities. The central bank says economic activity continues to be underpinned by household spending and a firm economic recovery in the United States.

However, it noted that increased uncertainty about growth in China and other emerging markets is raising questions about the pace of the global recovery. It says the uncertainty is contributing to volatility on the financial markets. The Bank of Canada says inflation has "evolved in line" with its expectations in the July monetary policy report and has remained near the bottom end of the target range, due to the drop in energy prices.
 
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Eddy Farina, Fin. Pl., CIM
®
Senior Vice President, Investment Advisor
514.981.5727
 

" People do not decide to become extraordinary.
They decide to accomplish extraordinary things  "
 
- Sir Edmund Hilary 
(first to reach the summit of Mount Everest)


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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.