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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.
Our Research Department just released their new Quartely Market Outlook. You can access the full report by click here.
Enjoy your reading!
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
Jan. 31 2016*
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2016
Year to date
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2015
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S&P / TSX
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12,822
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-1.4 %
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-11,1 %
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S&P 500
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1,940
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-5.1 %
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-0,7 %
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Euro Stoxx 50
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3,045
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-6.8 %
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3,8 %
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MCSI emerging markets
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742
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-6.5 %
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-17,0 %
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Oil ($US/Barrel)
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$ 33.62
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-11.9 %
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-38,8 %
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Gold ($US/oz)
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$ 1,116
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5.2 %
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-10,8 %
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$CAD / $USD
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$ 0.72
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0 %
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-16,5 %
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Source : Bloomberg, Richardson GMP Limited
*Values are in local currency
For an updated performance table, please contact us.
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Investment Strategies
4 things to know about the market correction
The stock market is cyclical. It builds up, peaks, then falls - and then the process starts over again. Right now, we're in the falling part of the cycle, and all three major equity markets (the NASDAQ, S&P500 and Dow Jones) are in what's called a correction, defined as a 10% drop from a recent peak. Stock market corrections have historically happened every 18 months. The last time we had a correction was August 2015, but that was the first in nearly four years, an unusually long gap.
Why is a correction happening again? Chinese stock markets have been extremely volatile in recent months, rising to record highs and then plummeting on worries about policy changes, slowing economic growth and a weaker yuan. While North American investors aren't exposed to those stock markets directly, China is a global powerhouse, so weakness there concerns investors everywhere.
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Tax & Estate Planning Strategies
2015 Year-end tax planning checklist
Knowing the results of our most recent federal election, we should take a look at what our new government might have in store for taxpayers. During the election, the Liberal party platform had several initiatives and promises that affected taxpayers.
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In the news
Prepare for rocky markets in 2016
As we head into 2016, central banks will continue to prop up the global economy. The drivers of the global economy in 2015 will continue to shape the macroeconomic environment in 2016. We live in an age of oversupply, and central bankers are the only policymakers currently poised to provide enough stimulus to significantly try to generate demand.
Oversupply of debt is constraining the ability of governments to provide enough fiscal stimulus to generate demand. Central banks have stepped in with significant monetary easing, but that has led to oversupply of liquidity in the macroeconomic system. For the next five years, we'll continue to live in a low-growth, low-rate and low-inflation environment for the next five years.
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Batten down the hatches for 2016
As we head into 2016, we should stay calm and hedge our portfolios. That's because markets will continue to be volatile. And, we may be surprised by commodities markets and government policy moves.
Growth is back, but with a twist. The trick to surviving and thriving will be adept management of volatility. And, given Canada's strong structural position, which is based on its well-managed fiscal policy, solid financial institutions and a diverse export base, we are well positioned to take advantage of global opportunities.
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Outlook 2016: Not a barn burner
Although 2016 began with heart-stopping drops in equities markets, first in China and then around the world, global economic prospects this year are not likely to be as gloomy as the plunge in stock prices may indicate. The market declines do not signify a downward trend in world economies. The turmoil is mainly the result of market reactions to China's efforts to devalue its overvalued currency gradually.
However, that's not to say that global economic growth will be strong this year. It's looking like another year of below-trend economic growth, with almost no countries growing above potential. The lackluster economic outlook is not surprising. Economic growth has declined as the populations of countries age, which reduces the proportion of the people working.
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Eddy Farina, Fin. Pl., CIM
®
Senior Vice President, Investment Advisor 514.981.5727
" The stock market is filled with individuals who know the price of everything, but the value of nothing "
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514.981.5727 |
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Richardson GMP embraces fiduciary excellence. Read more
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.
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