I have listed some ‘benchmark’ returns ending June 13th for people to use in reviewing their own portfolios.
First locate the ‘benchmark’ that has the similar level of FIXED INCOME as your own model portfolio. If you are not sure of that number than please take the time to contact/e-mail me to get that number.
I e-mailed Dynamic yesterday as to their viewpoint on the recent strength in the CDN$ versus US$ and I have enclosed their reply below…’for what it’s worth’.
Please see Myles’ comments below regarding your question:
Strength due to market re-pricing expectations of a Bank of Canada rate hike. A couple of speeches this week (Monday and Tuesday) from senior Bank of Canada officials (Wilkins, Poloz) has people believing the monetary authorities are beginning to prepare the market for one 25 basis point hike before year’s end. According to the OIS curve the odds of a rate hike before year’s end has sky-rocketed on the comments, from 29.6% last Friday to 63.2% today. There were record short positions against the Canadian dollar going into these comments and now the shorts are being forced to cover.
We are still negative on the 1-3 year outlook for the Canadian dollar. Near term, the rally might continue as shorts continue to cover. But I think housing might be the next long term challenge for Canada. That challenge is brought to the present more quickly if rate hikes are on the table.
The views expressed do not necessarily reflect the opinion of Argosy Securities Inc. This does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. Please consult a professional before making an investment decision.