We are almost at the end of the first month of 2018. The month came in with a roar as global equity markets moved higher and is going out with a whimper as rising interest rates (or threat of rising rates) are pushing down income oriented equities (think BCE, TransCanada, Utility stocks) that people have owned because rates have been so low. Many of these investors did not want to actually own equities.
With 2 days left in the month I feel safe to say most clients will see a gain for the month (before income streams but we can see the volatility of the equity and bond markets increasing on a day to day basis. The CURE for that volatility is to stop looking at the markets each day :)
I am attaching a few articles that I thought relevant to clients, or interesting or perhaps just controversial.
The first is from David Rosenberg (chief economist for a large firm in Canada)
‘there is no better time to books some profits than right now’
(I agree with David as I FIRMLY believe in a ‘reversion to the mean’ or put another way ‘what goes up must come down’
For those taking regular income out of their investment accounts is could be as simple as ‘filling up’ the pails that generate that monthly, quarterly or annual income stream.
On the same theme of ‘reversion to the mean’ there are several INCOME GENERATING stocks that have been hit hard as rates have ticked higher. I would suggest that those who own could look at adding to these positions and those that do not own could look at starting to accumulate positions. These stocks include:
Most of these businesses have a GROWING distribution every year which is a huge benefit when trying to fight inflation.
Another article has to do with something that I come across more and more often is a close to retirement individual/couple or actually in retirement couple/individual dipping into their own (sometimes scarce) retirement capital to come to the aid/rescue of children.
While some people are able to do this without harming their own ability to support a lifestyle that is not always the case.
The opposite of ‘what goes up must come down’ is what goes down must/might come back up. In light of that I have 3 potential candidates for that and if you want more info on these than I would be happy to provide it (particularly Cineplex)
Secure Energy Services
Last but not least I am going to attach a recent u-tube video of Eric Buschell who is the head of Signature Investments. These team manages about 40% of the assets for my clients.
Our CORE position in most client portfolios is the CI Signature Global Income and Growth portfolio, a go anywhere and do anything tactically managed portfolio. They now have a 10 year track record and are 1st quartile across most time frames.
As usual if you have any questions or concerns please respond by e-mail or phone.
I ENCOURAGE THOSE STILL SAVING FOR RETIREMENT TO SEND IN THERE YEAR END PAY STUBS SO A TRIAL TAX RETURN CAN BE DONE.
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‘historical analysis does not reflect future returns’