Wall Street Spikes, TSX Climbs After Upbeat U.S. Jobs Data

Wall Street Spikes, TSX Climbs After Upbeat U.S. Jobs DataCanadian stocks rose a second day, paring a weekly loss, after jobs data from Canada and the U.S. spurred speculation central banks won’t raise interest rates soon. Royal Bank of Canada and Toronto-Dominion Bank increased at least 0.5 per cent to pace gains among the nation’s largest lenders. Gran Tierra Energy Inc. added 1.4 per cent after agreeing to demands from investor West Face Capital Inc. to expand the company…

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Why Investors Should Look Outside of U.S. Markets

Why Investors Should Look Outside of U.S. MarketsValue investors are finding it difficult to pick stocks in the U.S. as low interest rates around the world continue to fuel equity markets, especially since U.S. multinationals are getting hit quite hard by their foreign currency exposure due to the greenback’s strength. Nevertheless, strategists are almost universally positive on the outlook for U.S. markets this year. But Norman Levine and Darren Sissons of Toronto-based Portfolio Management Corp., are taking…

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Why Investors Want Cash Now Instead of Future Gains

Why Investors Want Cash Now Instead of Future GainsBarry Schwartz believes a company that is increasing its dividend or buying back shares is a far better investment than one more committed to raising capital expenditures. The chief investment officer at Baskin Financial Services Inc., a wealth management firm in Toronto, thinks it’s a no-brainer. “Have there ever been any studies showing that companies that increase capex over time outperform, because I haven’t seen one,” he said. “But I’ve…

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GICs – The Problem With Playing It Safe

GICs - The Problem With Playing It SafeThe Problem As a 59-year-old training administrator for a mining company, Heather is a member of her company’s defined contribution pension plan. She’s also mortgage-free. But in 2008 she suffered a 40% loss in her stock portfolio and has since slowly sold off all her high-fee mutual funds, putting her 100% in cash. “I have to pay more attention,” says Heather, who has started managing her own finances. After reading…

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The Investing Case for Canada

The Investing Case for CanadaCanada has always had to play second fiddle to our neighbours to the south. The Great White North just never seems to get the respect it deserves, whether it’s the frequent lag in products arriving on our soil, the border, tax and currency concerns among athletes and entertainers, and, of course, the weather. From an investing standpoint, it’s true that Canada was the place to be during the commodity supercycle…

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The Invisible Correction

The Invisible CorrectionFrom Black Monday, Oct. 19, 1987, to the September 2008 crash caused by U.S. financials’ exposure to toxic subprime loans and credit default swaps, it’s no wonder that, when autumn nears, so do investors’ fears of stock-market routs. During the 2008 collapse, which was the last major market crash aside from the flash crash of 2010, U.S. equities lost 21% of their value in a week and continued to crater until…

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Why Investors Can Still Find Bargain Stocks in Canada, U.S.

Why Investors Can Still Find Bargain Stocks in Canada, U.S.The number of warnings about overvalued markets seems to be quickly ratcheting upward and no wonder. Stocks in the U.S. closed their best August since 2000, with the S&P 500 up 3.77% for the month. And with a 1.92% return for the TSX during that time, the rally has left equity valuations on both sides of the border sitting at multi-year highs. The S&P 500 currently has a price-earnings ratio…

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5 Reasons Not To Watch For A Stock Market Correction

5 Reasons Not To Watch For A Stock Market CorrectionRecord high markets have our customers asking us questions every day such as: When will there be a correction in the market? What can I do to protect myself from it? First of all, this sort of thinking can be detrimental to your portfolio. Corrections are part of the market, just as rallies are. Trying to predict a correction is more or less impossible, but it also automatically puts you…

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How to Beef Up a Liquid Investor Diet

How to Beef Up a Liquid Investor DietMany alternative investments, whether in the area of real estate, private equity, hedge funds, infrastructure or more complex structured products, require investors to tie up their capital for periods ranging from four months to 10 years or more. In most cases, there is no secondary market for these securities, so investors lack two elements key to the broader public capital markets: transparent pricing and liquidity. Pricing and liquidity are tied…

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Markets, Dollar, Rally on EU Crisis Plan

Markets, Dollar, Rally on EU Crisis PlanStocks, the Canadian dollar and commodities all soared Friday in the wake of an agreement among European leaders to a set of prescriptions for their debt crisis. But analysts questioned how long the rally would hold. In Toronto, the S&P/TSX composite index closed up 171.86 points, or 1.5 per cent, at 11,596.56. In New York, the Dow Jones industrial average jumped 277.83 points, or 2.20 per cent, at 12,880.09. The…

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