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
Get the facts on fixed income
MoneySense’s Invest for Success event brings people together with investing experts to hear their hard-worn advice.
In this video from the conference, Stephen Lingard, portfolio manager with Franklin Templeton Investments, talks about how bond investing has changed in the past 10 years, with returns from fixed-income falling to about 2% from 40-year historical levels of around 8%.
“From a return perspective, we’re going to count on them less, it’s really as more of a portfolio diversifier,” he says.
He also gives his outlook for Canadian equities for the next five to seven years.
Follow this link to watch the video
Cardinal Update – August 2016
Where the Real Value Lies – Recent market moves have delighted many of our clients as they have seen the market value on their accounts continue to march upward, albeit in choppy fashion. We enjoy having happy clients, but fear that rising market values distract some clients from the real value in their accounts. Market values go up and go down, at the whim of the marketplace. What value there is today can be drastically diminished tomorrow. Market value is the wrong measuring stick. Recall that investing and wealth is the ownership of strong, profitably growing companies.
Click here to read more: Cardinal Update – August 2016
