Cardinal Update – September 2016
RISK: SO FAR, BUT NO FURTHER – On September 12, Agrium (AGU) and Potash Corp. (POT) announced a merger plan to create the largest crop nutrient company in the world, three times the size of its nearest competitor. While impressive, we believe the merger increases AGU’s exposure to commodity prices and raises the risk profile of the company. We feel that the merger will result in a company that does not serve the best interests of our clients, thus leading us to exit our position in the company…….
COMPANY FOCUS: WPP PLC – We have recently added WPP PLC (WPP) to our buy list for Canada Plus and Foreign accounts. London based WPP is the world’s leading advertising agency holding company by both market
capitalization (£22.1B) and revenues (£12.9B)……
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The Wealthy Expect More Volatility
No matter what your net worth, we as investors all share common goals. Take a look at how the ultra wealthy are building and protecting their net worth….an informative read.
DM Monthly Report – Sept 2016
Are We Really At The Brink Of “BOND-POCOLYPSE”? – Doomsday predictions for stocks are pretty commonplace, so much so that it’s often hard to keep track of who’s calling for which crash when. In recent quarters, though, fixed income markets have also been caught in the crosshairs of scaremongers, with several commentators and asset managers warning that we’re in the midst of an unsustainable bond bubble that will inevitably burst with costly implications.
Click here to read more: DM-Monthly-Report-Sep-16
The Huge Opportunity of Millennial Home Buyers
Property sellers, builders and managers are set to cash in as members of Generation Y finally find the money for a mortgage down payment
Amid predictions for a modest 2016, home prices in many Canadian markets continue to soar, and much of the growth is coming from an unlikely source: millennials. Canadians ages 16 to 36 are over nine million strong; they’re now the largest cohort in our workforce, and they’re entering their prime home-buying years.
Frank Magliocco, Canadian real estate lead at PwC, does not expect high demand—and related house price increases—to ease up any time soon in hot urban markets like Vancouver and Toronto. He points to growth in condos, rental apartments and mixed-use urban developments as proof that young buyers don’t fear big mortgages (or big leases): “In large part, [growth] is driven by millennials wanting to go to where the action is.”
Here’s why young buyers are able to get into the market—and who stands to gain from it.
79% of millennials still believe owning a home is attainable according to a 2016 poll, despite mushrooming prices raising barriers for first-time buyers
