Your market overview – September Edition After a dismal 2016, advanced economies are now bouncing back nicely. Latest CPB data shows OECD industrial output surging 5.3% annualized in Q2, the biggest quarterly increase since 2011. That was made possible by a further ramp up in global trade volumes which reached a new record last quarter. Stronger industrial performance translated into hotter GDP growth in major advanced economies. In the U.S. for example, economic growth accelerated...
Market overview Economy The observed uptick in global economic activity is consistent with our view that world GDP growth will pick up to 3.3% this year. Both advanced and emerging economies are seeing stronger growth, although that’s in part due to fiscal and monetary policy stimulus. With tighter policy in the cards for next year, it’s unclear if momentum can extend to 2018, more so considering risks such as trade protectionism, elevated debt levels and...
Our summary of the market FINANCIAL MARKETS With Donald Trump establishing his new headquarters in the oval office and the conflicts in the South China Sea, the year 2017 started on a very eventful beginning. The financial markets reached new highs and maintained a low level of volatility. This constant progression has been generated by the recovery of the World economy, good investors’ expectations of the fiscal stimulus proposed by Trump, the ascent of the...
Keys to Successful Debt Management Perhaps the most encouraging outcome of the latest recession is the increasing emphasis on debt reduction by most Canadians. We are borrowing less and saving more, and, hopefully, developing some more frugal habits that can lead to healthier finances in the future. Still, many people continue to struggle with their debt. It takes a firm commitment and a lot of discipline, but most people are only a few steps away...
Investors Beware: The Media Noise can be Deafening Most people would argue that living in a digital world, with instant access to an endless stream of information has made us smarter and more self-empowered than past generations. Investors believe that it has “leveled the playing field”, enabling them to make investment decisions based on the same information once only available to the investment pros. The incessant quest for information has reached such a fever pitch...
Your market review The year 2016 has not been a boring one. Let’s take the time to review the events that have marked the history and the world’s international stock markets. STOCK MARKET The first quarter of the year was a difficult time for several investors as we experienced a rapid drop of the indexes. The main cause was the price of the oil barrel as well as concerns about the slowdown in global economic...
Canada After a difficult last year, 2016 didn’t start much better and was marked by the free fall of the oil price. Since then, the Canadian market has had some better moments in the last three months. However, in economic terms, Canada just had its worst quarter since the 2009 recession. GDP is showing a lower production caused by the diminished international trade. Of course, the Fort McMurray forest fires are partly responsible for this...
Why women make better investors than men When it comes to admitting that women are better at certain things, men have a difficult time conceding any degree of supremacy. One of the more contentious debates in the gender stakes is over which is the better driver – the male or female of the species. Of course, as with any contest of proficiency, establishing superiority is contingent on what exactly is being measured. While, men will...
Green Investments Is it profitable to invest your money in an « ethical » fund? Ethical (or socially responsible) investments have become more popular over the past 30 years. There has been an increase in the amount of investors searching for this type of investment, which not only have a positive impact on their environment or society, but which also generate interesting returns. What is an ethical fund? Ethical mutual funds invest in companies that...
How to Keep Your Life Insurance Costs Down With rates as low and competitive as they have ever been, it’s as close to a “buyers” market in life insurance as you’ll probably ever see. Still, in these cash-strapped times, curbing all costs and expenses is a priority for most people, and buying life insurance is no different. While the cost of life insurance is predicated upon several factors over which we have little control, such...
Are Investors Their Own Worst Enemy? When it comes to investing, people can be their own worst enemy. Nearly all of the mistakes made by investors can be attributed to their behaviour, which is typically dictated by their emotions. Fear and greed have ways of influencing the investing decisions of even the most rational people; which is why most investors typically underperform the markets. According to a 2015 study by DALBAR, the returns most investors...
Asset Allocation: The Key to Long-Term Investment Returns Watching the roller coaster ride of the stock market can make many investors queasy. Even though the stock market has, historically, always trended up, investors can’t help but feel uneasy as they watch the values of their portfolios rise and fall with the market. That is, unless they also have a portion of their money in the bond market and the precious metals market, and in short...