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Volatility in global
financial markets has increased substantially over the past six months,
beginning with the equity market downturn at the beginning of the summer
of 2007. Equity markets did briefly recover much of their losses, but have
since moved lower, and the path appears to remain rocky. Key Points to
Remember - It is a market of stocks, not a stock market. Although the benchmark indices have posted negative returns over the past twelve months, with sharply negative returns in the last three, sector and individual share price performance has been very mixed. In the S&P/TSX Composite Index, Utilities and Materials have posted positive returns over the past three months even as the index posted a -7.1% return. 68 of the 257 members of the index are in positive territory over this period - 28 of which have provided returns in excess of 10%. - After a sluggish performance in the first half of 2007, bonds have provided solid returns as equity markets moved lower. Over the past 12 months, the DEX Universe Bond Index has returned 4.9%, after marking a 4.4% gain over the last three months. | ||||
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The US economy is
slowing down. A soft US economy is forecast with growth projected to be
less than 1%. It's unclear if the country will slip into recession,
however the Feds are expected to lower the overnight bank rate by 100 bps
to stimulate economic growth. Canada is in a more
enviable position with our economic growth expected to be above 2% due to
our resource base. However, with about 80% of our exports to the U.S.,
it's difficult to see how we won't be affected by the U.S.
slowdown. | ||
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To use the RRSP
contribution receipt for the 2007 taxation year, the deadline to
contribute to your RRSP is Friday February 29, 2008. The maximum RRSP contribution limit for 2007 is $19,000 and $20,000 for 2008. If you are expecting
a tax refund, you've been successful in providing the government with an
interest-free loan throughout the year. Set up a regular monthly RRSP
contribution and request that less tax is deducted from your paycheque.
Setting up a regular monthly contribution is a convenient and effortless
way to contribute to your RRSP. It means that you don't have to scramble
to come up with cash for a last-minute lump-sum contribution and your
contribution is being invested on days when the market may be lower,
thereby giving you more value for your money. Call
us to set it up.
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RetireWell -I'm
hosting a seminar with John Moore on Jan 24th. February 12th - I will be participating with Fred Ketchen in a retirement-focused, one hour live web cast, hosted on CanWest Media's Financial Post website in the evening. February 16th - I
will be presenting a Financial Fitness seminar for the Empowering Women
Series sponsored by Scotiabank and the Famous People Players Theatre,
includes breakfast and mini-show. Visit fpp.org
for more details. If you're interested to learn more about these upcoming events or to participate, please contact us. | ||
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This publication is
intended only to convey information. It is not to be construed as an
investment guide or as an offer or solicitation of an offer to buy or sell
any of the securities mentioned in it. The author is an employee of
ScotiaMcLeod, a division of Scotia Capital Inc. ("SCI"), but the data
selection, analysis and views expressed herein are solely those of the
author and not those of SCI. The author has taken all usual and reasonable
precautions to determine that the information contained in this
publication has been obtained from sources believed to be reliable and
that the procedures used to summarize and analyze such information are
based on approved practices and principles in the investment industry.
However, the market forces underlying investment value are subject to
sudden and dramatic changes and data availability varies from one moment
to the next. Consequently, neither the author nor SCI can make any
warranty as to the accuracy or completeness of information, analysis or
views contained in this publication or their usefulness or suitability in
any particular circumstance. You should not undertake any investment or
portfolio assessment or other transaction on the basis of this
publication, but should first consult your investment advisor, who can
assess all relevant particulars of any proposed investment or transaction.
SCI and the author accept no liability of whatsoever kind for any damages
or losses incurred by you as a result of f reliance upon or use of this
publication in contravention of this notice. TM Trademark used under
authorization and control of The Bank of Nova Scotia. ScotiaMcLeod is a
division of Scotia Capital Inc., Member CIPF. | ||
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Ingrid and I are here to serve you;
please contact us anytime.
Beverley J. Moir, MHSA, FCSI, CIMA Sr. Investment Executive ScotiaMcLeod, Head Office Branch email: bev_moir@scotiamcleod.com
phone: (416) 862-3911
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