Canadian markets shine on rebound in gold
With political tensions heightened after Russia’s annexation of the Crimean peninsula, gold and other safe haven assets experienced a decent rise in the first quarter of the year. This certainly helped the Canadian equity markets, which saw the S&P/TSX Composite Index rise by more than 6%. Small and mid-caps were even stronger, gaining nearly 8%. Global markets were also largely higher,...
Read MoreMarkets higher in November. Budget deal increases probability of tapering
Global equity markets rallied higher for the third month in a row, with the U.S. leading the way with a broad based rally. The S&P 500 gained more than 3% in U.S. dollar terms on an improving global economy. Factor in a weakening Canadian dollar and the gains were even higher for Canadian investors, with the S&P 500 returning nearly 5% in Canadian dollar terms European markets were also...
Read MoreDespite U.S. government shutdown, global markets rally higher
Historically, October has been one of the most volatile months for equity markets, and this year looked to be no different. The stage was set for a bumpy ride as continuing uncertainty over the prospect of the U.S. Federal Reserve slowing the pace of its bond buying program weighed on investors. Adding fuel to this potential flame was the high stakes game of chicken playing out between the...
Read MoreLack of taper announcement pushes markets higher
As we entered September, investors were focused on the September meeting of the U.S. Federal Reserve’s Open Market Committee. The consensus was that this meeting would be when the Fed chair Ben Bernanke finally announced that they would begin to slow the pace of their massive bond buying program, signaling the beginning of the end for low interest rates. Traders were widely expecting a cut of...
Read MoreGlobal tensions and tapering talk worry investors
Investor worries over when the U.S. Federal Reserve would begin tapering its massive bond buying program re-emerged in August, pushing bond yields higher. In the U.S., the yield on the benchmark ten year U.S. Treasury Bond rose from 2.60% to 2.78%. It was the same situation in Canada, where the yield jumped from 2.45% to 2.61% on the Government of Canada ten year bond. This continued rise in...
Read MoreThird quarter starts off strong
Calmer heads prevail as economic numbers continue to improve. The third quarter started off well with gains in both stocks and bonds. Worries over higher interest rates took a back seat to improving economic fundamentals both at home and abroad. In Canada, the S&P/TSX Composite Index rose by 3.2%, led by strong gains in gold companies, consumer staples and financials. Gold rallied by more...
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