October 25th 2013 Market Update

Asian markets tumbled about 2.5% overnight on the potential for the PBOC to tighten credit and the strength of the Yen against the USD.

In Europe, markets are off slightly at midday as the Asian news and business morale in Germany declining in September.  The loss is about a fifth of a point as the UK economy increased at the fastest pace since 2010 in the last quarter.

US futures are flat this morning regardless of the fact Durable goods (ex transports) for Sept were lower than expected.  Canadian futures are also pointing to a relatively flat opening.

Gold is off this morning about 9.00 to 1340, oil is rebounding up half a point to 97.55 and the loonie is off another 0.25 cents to 95.73.  The US and Canadian 10 year bonds are flat this morning yielding 2.51% and 2.42% respectively.

In mandate earnings news, Eastman Chemical and Microsoft both beat on the top and bottom lines.  In the case of Microsoft it was also announced that the current CEO will be stepping down next year.  Consumer products companies Sherwin Williams and P&G both missed estimates slightly but met or beat on revenues.

Lastly this morning, Twitter announced the terms of the coming IPO and have lowballed both pricing and size.  Lessons learned from the Facebook debacle a couple of years ago.  This deal will be highly subscribed regardless of the fact the company has not been profitable since it began.  We shall watch with some interest but will not be participating in the deal.

Kenneth A. Dick, BA, CIM, CFP, FCSI

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management

www.glwm.ca

June 25th, 2013 Business Update

The volatility show continues however, yesterday we did see some buying (investors) coming into the game in the defensive sectors that have been grossly oversold over the past month causing markets to finish off the lows of the days and many of the “bond surrogate” stocks actually finish higher.

Overnight in China, the PBOC reiterated that they have and will continue to provide liquidity to banks that require funding to maintain reserves.  That news caused a massive reversal in the capital markets causing the Shanghai index to finish down about three quarters of a point.

Europe on the other hand has rallied at midday up about 1.50% on the positive news out of China and from the ECB suggesting the exit from stimulative monetary policy in the region is a long way away.

In the US, Durable Goods Orders were released and were north of estimates both on a gross basis and stripping out transports.  Also, the Case Shiller Home Index was stronger once again month over month and year over year ahead of estimates.  Of course with these crazy markets does good news economically mean higher markets?  It should, but of course it also means less liquidity (in the future) as the Fed reduces the stimulus.  The bottom line, and the markets have it right this morning, is as the economy improves so should markets and futures are higher this morning by about three quarters of a point.

Canadian futures are also higher by about the same amount.

Bond markets are higher on bargain hunting and to make things even more confusing so are the commodities.  Gold is up 4 bucks to 1280, oil is up 40 cents to 95.59 and the loonie is up slightly to 95.28.

Bottom line folks, don’t get caught up in the daily noise.  Portfolios are in great shape as the recovery continues and other than allocation model balancing and some sector rotation the strategy continues.

Kenneth A. Dick, BA, CIM, CFP, FCSI

Branch Manager & Portfolio Manager | Independent Wealth Management

Canaccord Genuity Wealth Management

www.glwm.ca