• 21May

  Secular Bear and Bull Markets

  Market Commentary No Comments

   

  Over the past year I have spent time reviewing the history of the markets. While it does not predict the future, there are some interesting observations that you may be unaware of which could make a significant impact on how you view the markets and how you invest going forward.

  Over the longer term (75 to 100 years) markets go up. However, most investors do not invest over that time-frame. Generally, an investor’s long-term time horizon is in the neighbourhood of 20 or so years and would be defined as an intermediate timeframe. The trends for “secular” markets generally last longer than market or business cycles. During these intermediate timeframes, markets are either in “secular bulls” (going up) or “secular bears” (going sideways or down). Below I have labelled the “secular bear” markets for the Dow Jones Industrial Average since 1898.

   

   

    Continue reading »

• 21May

  Have We Bottomed?

  Market Commentary No Comments
  Have We Bottomed?

  This is the question on everyone’s mind. Unfortunately no one knows for sure!

  Leading economic indicators change before the economy changes

  You may have noticed that the equity markets have risen of late even though the economic news continues to be bad. Company earnings are down but in many cases are beating expectations and their stock price rises. Stock market returns are a leading indicator, as the stock market usually begins to decline before the economy declines and improve before the economy begins to pull out of a recession. Leading economic indicators are important because they help predict what the economy will be like in the future. Continue reading »

• 21May

  Do You Know Your Number?

  In Your Best Interest No Comments

   

   

   

  Do You Know Your Number?

   

  While extreme market volatility continues and the length of the recession remains uncertain, investors are understandably scared about their investments and their ability to retire comfortably. Whether you invest on your own or use an advisor, my recommendation is that you should review your retirement plan to determine where you stand personally.

  One of the best methods to model your retirement plan is using the Otar Retirement Calculator (ORC). It is straightforward to use and answers the following questions.

   

  • Do I have enough money to retire?

  • How long will my money last?

  • When can I retire?

  • How much do I need to save for my retirement?

  • Do I need a life annuity?

  • What is my optimum asset mix? Continue reading »

• 17Mar

  GICs Rates - March 12, 2009

  Market Commentary No Comments

  Click on this link for rates as of march-12-2009

• 21Jan

  GlobeCampus.ca

  Education / RESPs / CESGs No Comments

  If you have children finishing up high school (or a year or two still to go) and trying to figure out where they are going for post-secondary education this is a great site by the Globe and Mail. Lots of hints and tips worth reviewing.

  www.globecampus.ca

• 12Jan

  2008 Market Data

  Market Commentary No Comments

  

  Market Data December 31, 2008

• 12Jan

  Canadian Pension Plans Pummelled in 2008

  Market Commentary No Comments

  The chaos occurring in the world’s financial markets over the last year has had a serious impact on pension plan funding and will negatively impact corporate earnings in 2009, according to the latest estimates by Mercer. Read the press release.

• 11Jan

  Major Equity Markets

  Market Commentary No Comments

  Many times I am asked about how the markets are doing. Here is a quick overview of the…

  EQUITY MARKETS

  In Canada, the S&P/TSX represents the broad Canadian Market.

  Click here to view the S&P/TSX

  In the United States, the S&P500 represent the 500 largest US companies based upon market capitalization.

  Click here to view the S&P500

  The international (equities outside of North America) market is best represented by

  the EAFE (Europe, Austrail and Far East) index is used.

  Click here to view the EAFE Index

  You will notice two lines on each chart.

  The blue line represents the 50-day simple moving average.This is a common short-term indicator.

  The red line represents the 200-day simple moving average. This is a common long-term indicator.

• 05Jan

  Sustainable Retirement Income: What’s your RSQ?

  In Your Best Interest No Comments

  In June 2006, I wrote an article on “variable annuities, the new kid on the block” which dealt with a new retirement income product that might be worth consideration. Until then, a retiree had only a few product choices on how to allocate their retirement savings to provide sustainable income as follows.

  1.      Variable products such as mutual funds, stocks, bonds or cash can be used to design a portfolio with which to take regular income withdrawals in retirement. These portfolios are subjected to sequence of return risk especially if you retire in a down market and are making regular withdrawals.

  2.      Guaranteed products such as GICs or annuities can also be used. In the current interest rate environment, GICs have low rates of return and generally do not keep up with inflation.  Annuities provide a guaranteed income stream for life, much like a pension. However once purchased, there is no access to the capital and typically no estate value. Continue reading »

• 05Jan

  Retirement 101 Launched!

  Retirement 101 No Comments

  On Dec 1, 2008 Retirement 101 was successfully launched in the Quinte and surrounding area.

  retirement-101-course-overview

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