As if two stock market corrections in 2018 were not enough, another major sell-off just before Christmas, gave investors a “three-peat”, and left all major market indices squarely in the red at year’s end. For the US benchmark S&P 500, it was the first time in a decade that the index closed a year with […]
Fixed-income is the asset class that includes all types of debt securities, most notably bonds. All types of bonds are sensitive to changes in interest rates, although some more so than others, and government bonds in particular. Here’s how it works: Say you invest $1000 in a newly issued bond that promises 4% interest. The […]
A low interest rate environment is always going to be favorable for stock valuations. As Warren Buffet, the well known value investor is often quoted: “Interest rates are to asset prices what gravity is to the apple. When there are low interest rates, there is a very low gravitational pull on asset prices.” In a […]
RRSPs: Tax-Free Investing
2018/12/31
We all know that RRSP contributions can provide substantial tax relief in the year the contribution is deducted. What is often forgotten is the power of tax-free compounding that RRSP investments afford. As Director of Tax and Estate Planning at CIBC, Jaime Golombek points out, the investment income earned within an RRSP is not merely […]
Doing well while doing good
2018/03/05
RI, also known as SRI or socially responsible investing, refers to the integration of companies’ environmental, social and governance (ESG) practices into the selection and management of investments. One of the myths surrounding RI is the notion that aligning investments with one’s values necessarily entails sacrificing investment returns. But there is plenty of evidence to […]
It’s a Balancing Act
2018/03/05
The global economy is now firing on all cylinders, in a synchronized expansion not seen in many years. Corporate fundamentals are strong, and earnings have been steadily growing. Against this economic backdrop, investor confidence has been on the rise. Indeed, on the heels of another year of healthy gains in the equity markets, and surprisingly […]
To Hedge or not to Hedge
2016/02/22
…that is the currency question! All in all, 2015 was a disappointing year for investors, one that was characterized by heightened volatility in all asset classes. The only real winner was the US dollar which soared in value against all major world currencies, including of course our Canadian dollar. This graph illustrates the volatility in […]
The Bear Rears its Head
2016/02/22
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” ― Benjamin Graham What a start to the new year for investors! By early January, all major stock market indices around the world were in the throws of a major sell-off. In the US, the […]
It’s Official!
2016/01/18
Federal Tax Changes On December 7th, the new federal government confirmed its campaign promise to reduce taxes for the “middle-class”, offset by an increase in taxes for Canadians with much higher earnings. The result is a 1.5% reduction in the federal tax rate on income earned in the bracket of $45,282 to $90,563. For those […]
Outlook 2015
2015/03/02
Investors enjoyed a pretty smooth and very rewarding ride throughout most of 2014, as both bond and equity markets delivered strong returns. The big game changer came in the latter half of the year with the dramatic decline in oil prices. Cheap oil is unquestionably a huge boon for consumers and the global economy as […]
