DM Monthly Newsletter – Jan 2017
IN EQUITY MANAGEMENT, SIZE CAN MATTER – Investment management is one of the new businesses in which size can be a detriment. Manufacturers with great scale are able to undercut competition on project bids, huge retailers can secure lower prices from product makers by buying in volume, and large pharma companies often maintain their edge by snapping up smaller competitors with successful or promising innovations. In managing portfolios, though, being big can be a significant hindrance to performance, especially in Canada where our equity markets lack the liquidity of large exchangers. In opening a portfolio position, a manager must not only be sure that the required number of shares can be purchased without flooding the market and driving up price, he or she must think about the possible future exit point and whether there are typically enough shares traded to absorb the holding in a timely fashion.
Click here to read more: DM-Monthly-Report-Jan-17
Three trends that will drive Canada’s economy in 2017
There are three trends that will guide the Canadian economy in 2017. Those are:
- the strength, or lack thereof, of oil prices;
- domestic housing developments; and
- whether the U.S. economy continues to improve.
So says Russell Investments’ 2017 Global Market Outlook, which calls for modest growth in the coming year for Canada.
“Moderate improvement in the price of oil and reasonable growth of the U.S. economy are weighed down by debt-laden households,” says Shailesh Kshatriya, director of Canadian strategies at Russell Investments Canada Limited. “We expect domestic equities to be positive, but without the exuberance of 2016. However, domestic bonds likely will be challenged as lacklustre fundamentals may be partially offset by rising yields in the U.S. […] On balance, we see 2017 economic growth in the range of 1.6% to 2%.”
Cardinal Update – December 2016
OPEC – On November 30, the members of the Organization of Petroleum Exporting Countries (OPEC) met and agreed on a production cut for the first time since 2008. It marks a 180 degree change from November 2014 when, faced with an oversupply, the cartel decided not to cut production. That 2014 meeting sealed the fate of the oil price recession as the Saudi’s put the cartel before the horse, targeting market share, rather than the price.
Click here to read more: cardinal-update-december-2016
Five ways to hard-wire children for a lifetime of giving
The season of giving is upon us, and I wanted to share this article from the Globe and Mail that talks about how we can encourage our children to be become charitable people.
This is also an opportunity for us at Wiffen Financial to send the warmest Christmas wishes to you and yours. We thank you for your business, and look forward to a successful 2017 for all.
