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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.
REMINDER: Our Research Department released last month their Quartely Market Outlook. You can access the full report by clicking 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
Feb. 29 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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12,860
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-1.1 %
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-11,1 %
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S&P 500
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1,932
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-5,5 %
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-0,7 %
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Euro Stoxx 50
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2,946
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-9.8 %
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3,8 %
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MCSI emerging markets
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740
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-6.8 %
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-17,0 %
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Oil ($US/Barrel)
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$ 33.75
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-11.6 %
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-38,8 %
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Gold ($US/oz)
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$ 1,234
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16.4 %
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-10,8 %
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$CAD / $USD
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$ 0.74
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2.3 %
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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
Why Canadian equities are due for a comeback
Canadian stocks have underperformed their American counterparts for five years now. That imbalance is an opportunity. That is the longest consecutive stretch of underperformance since 1970. (The previous record was the four years from 1989 to 1992.) If you believe the Canadian and American economies and capital markets are broadly similar, just skewed toward different industries and sizes of enterprises - and we do - then it's high time for the pendulum to swing the other way and for capital invested in Canada to begin earning a higher return than in the U.S.
Canada's long track record of market efficiency, transparency, the rule of law, and consistent and predictable regulation that's similar to the U.S. gives us confidence that the market's valuation will indeed revert to the mean-maybe not this year, but over the long term.
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Tax & Estate Planning Strategies
Opportunities for tax savings
Investing time and effort as you prepare your personal tax returns can result in substantial tax savings. The following tips should assist you in identifying potential opportunities to reduce taxes and protect your family's wealth. Since tax filing can be complex and ever changing, we recommend that you speak to your personal tax advisor prior to filing your return.
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In the news
Why the stock market won't collapse this year
The global economy and the U.S. in particular will do better than the bears believe, largely because of the positive impact of depressed oil prices, and that, in turn, makes a major market break unlikely. Individual investors are not embracing the current stock market. Instead they have been selling equities and buying bonds and gold. The economy does not appear to be overwrought.
The market overall is underrating what will very likely become an important economic tailwind for the next several quarters, writes Grantham, referring to the oil price drop. The U.S. and global economies are likely to do significantly better this year than recent opinions predict.
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3 ways to stay composed during volatility
Volatility is unavoidable in investing. But overreacting to short-term news and normal market movements often leads investors to inappropriately alter their asset allocations, potentially harming their ability to achieve long-term investment goals. Rather than fear volatile markets, investors should maintain their composure by staying focused on long-term economic and market expectations, and keeping three simple principles in mind.
Market drawdowns can occur frequently - over days, weeks or months - but having the fortitude to stay invested during these periods requires discipline that has often been rewarded. Despite average intra-year drops of 14.2%, annual returns are positive in 27 of 36 years.
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Major bubble just burst, and that's good for stocks
Better-than-expected U.S. data and a stable Chinese yuan has led to a popping of the global "negativity bubble," and that could drive equities significantly higher in March. Essentially, people were defensively positioned coming in to 2016. Then, all of a sudden, the numbers started to get a little bit better.
Despite depressed sentiment, tightening financial conditions, a shaky political backdrop and elevated volatility in assets and earnings, UBS still believes that markets are poised for gains and "remains comfortable" with an S&P 500 2016 year-end price target of 2,175, which is among the most bullish on Wall Street. That's a nearly 10 percent rise from the current price of around 1,986.
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Eddy Farina, Fin. Pl., CIM
®
Senior Vice President, Investment Advisor 514.981.5727
" Invest within your circle of competence.
It's not how big the circle is that counts;
it's how well you define the parameters. "
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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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