By Fund Library News Wire | Friday, March 27, 2015
* Fed rate concerns, geopolitics have markets retreating.
* Aston Hill expands Liquid Alternative lineup.
* Questrade launches ETFs.
* Fed rate concerns, geopolitics have markets retreating. Declining commodity prices again contributed to downside pressure on the S&P/TSX Composite Index this past week, as the Toronto benchmark retreated nearly -1% on the week. That was still a shallower slide than the -2.2% loss recorded by the U.S. blue-chip S&P 500 Composite Index and by the -2.7 loss posted by the Nasdaq Composite Index, as Federal Reserve Board Chair Janet Yellen said in a speech on Friday, “I expect that conditions may warrant an increase in the federal funds rate target sometime this year.”
Q – A friend recently asked me whether I’d be interested in a private investment that he said returns over 12% a month. He explained that an advisor he knows had told him it was some sort of syndicated offshore real estate timeshare investment with great cash flow, and was open only to what he calls “accredited investors” for a limited time. He said he’s already received several monthly cheques. This sounds like an exciting deal, and quite lucrative too. I’m thinking of investing. Have you ever heard of this type of investment, and what would some of the risks be, if any? – Sal M., Belleville, Ontario
Today’s great paradox is that the longer “secular stagnation” persists, the higher asset prices will likely rise and the higher the risks of major policy exits. To be sure, this is not an argument driven by bullish perspectives on the real economy. It is a recognition that the sponsorship of rising global asset markets by the world’s monetary authorities will continue for some time. Central banks are all in. And Japan is the leading case in point. We believe this will have salutary effects on Japanese stocks, especially the small-cap variety.
You’ve heard the old saying that too many cooks can spoil the broth. Not so with Capital International Global Equity Fund, the Fundata FundGrade 2014 A+ Award-winning global equity fund with a unique multi-manager approach that just seems to keep improving with extra seasoning. I peeked into the kitchen to try to learn just how they make it work.
Many Canadian Snowbirds who have become fed up with Canada’s long, hard winters (and there are bound to be many more this year, especially from the Eastern provinces) have purchased winter homes in Southern U.S. states. This has been an especially popular move over the past few years, with U.S. real estate at exceptionally affordable levels and interest rates at rock bottom. If you fall into this fortunate group, there are some cross-border tax traps to beware of, particularly if you rent out your U.S. property, and also when you decide to sell.