January 2018 – Portfolio Review
2018 started much like 2017 ended, with U.S. and global markets rallying higher. The S&P 500 gained 5.7% in U.S. dollar terms, and the MSCI EAFE Index gained 5.0%. Emerging markets, driven by a 12.5% surge in China were also very strong, as the MSCI Emerging Markets Index gained 8.3%. Closer to home, the S&P/TSX Composite bucked the global trend, and sold off modestly, falling 1.4% on weaker energy. The Energy sector lost 5.4% even as the price of oil rallied higher by more than 7%.
Read MoreDecember 2017 – Portfolio Review
2017 turned out to be a much better year for investors than many, including myself had predicted. Last year, I commented that the biggest threat to the markets was valuation, with the S&P 500 trading at 21.3 times earnings, and 17.6 times forward earnings, noting the ten-year average was more in the 14 range. I even went so far as to say “…lofty equity returns appear unlikely at current levels, meaning more subdued returns can be expected on a go forward basis.”
Read MoreNovember 2017 Portfolio Review
It was another positive month for investors as both equity and bond markets rallied higher. This resulted in the fourth month in a row of gains for our Model Portfolios. Our Conservative Portfolio gained 0.25%, our Balanced Portfolio rose by 0.50%, and the all-equity Growth Portfolio was higher by 1%. In Canada, the S&P/TSX Composite gained a very modest 0.5% while foreign markets fared better. The S&P 500 Index rose by 3.1%, and the MSCI EAFE Index returned 1.1%.
Read MoreOctober 2017 Portfolio Review
October was a strong month for Canadian investors as both stock and bond markets rallied higher around the globe. This translated into positive returns for the portfolios, each finishing in positive territory. The Conservative Portfolio rose by 1.4%, the Balanced Portfolio gained 2.6%, and the all-equity Growth Portfolio was higher by 4.5%.
Read MoreSeptember 2017 Portfolio Review
Looking back through time, September and October have been the most difficult months for investors. If there is a big drop in the equity markets, chances are, it’ll happen during these two months. Well touch wood, one down, and one to go, with September being a decent month for most investors. Global equity markets were mostly higher, while Canadian fixed income markets closed lower on rising...
Read MoreAugust 2017 Portfolio Review
Historically, August has been a sleeper of a month for investors, as many take time away to enjoy the last few weeks of summer. If one only looked at the investment returns, you may believe this August was no different, as many global markets finished the month roughly where they started. However, digging deeper the month was anything but dull.
Starting with the good news, it became clear that the global economy was enjoying synchronized global growth for the first time since the onset of the global financial crisis. Unfortunately, geopolitical concerns took center stage, as the U.S. and North Korea started a war of words that had some worried Armageddon was imminent. Fortunately, calmer heads prevailed, and markets were largely flat to mixed.
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