October 2018

Changing Markets -

Longest Bull Market, What does that mean?

Having recently been at many "portfolio and economic" market events, there's 1 thing that's clear.  There are 2 markets right now!  Yes, there are many different stock markets with different results, but I mean within each market the results vary substantially.  
A S&P500 chart shows the market with key technology stocks and without.  In this the best performing market, there's even a big shift. It's similar to what we saw back in 2000 if any remember the tech bubble.  If you didn't own technology (and today we can add marijuana stocks to the mix), your returns were flat to negative.  Money was following technology because the world was changing, because this was the way to profit. The old school stocks such as utilities, were not worth investing in, nobody cared about 4% dividends when you could make 20-40% on a stock that had huge growth potential.
Stock prices are always measured by a number of factors, 1 being Price to Earnings and right now the average P/E ratios on the technology stocks are extremely high, compared to historical average.  Does this mean that technology stocks are bad companies, no. But like in any run up, good companies can get overvalued.  For example, back in Dec. 1999, Microsoft hit $59.97 but dropped to $21.44 by December 2000, a 65% drop.  It was still doing well, but the stock price got ahead of it's potential.  That's what we appear to be seeing in today's market.  Companies that have solid earnings and strong dividends are cheap, but companies in growth industries are expensive.  Are they worth it?  Maybe.  But we will see a shift at some point.  The key is to ensure you have the right balance between the "old school" value stocks and dividends, and the growth stocks.   Sometimes, being prudent makes sense, and sometimes when the market seems to get very targeted to just a few stocks, it pays to be patient.  
Keep the defensive positions, even though they appear to be holding us back. They will recover, and it will be right when the tech stocks fall.
Ensure your short-term cash flow is managed more conservatively.
Most important, don't chase all the high returns.  Some exposure is fine, but ensure you aren't over weighted in areas that could be overpriced.
Investment Management and Financial Planning options have many facets to consider.  Ensure we are looking at all areas for your true needs.  That will ensure you have the highest opportunity to meet your goals.

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NAFTA - USMCA Trade Negotiation Update, and it's effect on you.

There's been a lot of talk about the impact of the agreement.  While the government promoted it as positive for Canada, there have been certain concerns, and the initial positive expectations, such as increasing currency, and increasing stock market, didn't last.  To learn more about the true impact, see this link.

More changes are coming as well, as Doug Ford works to shift the Bill 148 Fair Workers Bill.  We'll keep you posted in how this can affect your business, and your portfolio

Did you Know Life Insurance can provide an investment as well. At a time of market uncertainty, considering different options that protect tax is a win-win for those that have few other tax-free options.
1) The income tax act allows for significant tax savings when using life insurance to shelter deposits. All assets in an exempt life insurance policy grow on
a tax deferred basis, and are ultimately paid out free of tax upon the death of the life insured.
2) These assets are completely private. Other than the owner and the insurance co., no one will be able to determine who the beneficiaries are. With
traditional investments, since a will has to be probated to disburse money upon death, the will becomes a matter of public record after it is probated.

3) Investing into permanent insurance allows each investor to manage income from a third taxation structure that can help reduce or even avoid pension
claw-backs. As the investments grow tax-free, they can be switched, bought & sold without triggering taxable capital gains.

If you have additional cash flow and want a tax deferred way to manage it, there may be a solution with insurance.

Richmond Hill Centre For The Performing Arts Season kicked off October 3th. I'm excited to be a sponsor this year, helping to bring great art and entertainment to our community.  Enjoy an evening out with a great line up of performers for the 2017-2018 year including Don Ross, Rosanne Barr, Classic Albums Live and much more.

Estate Planning   
7 Biggest Mistakes of Preparing your Will.
We recently hosted an Estate planning seminar, and realize that many people don't do enough to protect their wishes.  Aretha Franklyn the most recent celebrity to die without a will, makes us all realize we must ensure we put things in place.
Need help making decisions?  Need help getting the job done.  If your status has changed, or the last time you prepared your will and Power of Attorneys the kids were small, and they now are parents themselves, it's definitely time to get it done.  
We have an Estate Planning kit that can help to prepare you for the lawyer's meeting, and help ensure you think of the key issues before you get there.  
Need help initiating the discussion with the family?  We offer a Family Wealth Planning session that helps to facilitate those difficult discussions, but also ensures key priorities that need to be shared are discussed.  Ask us how we can help.

Last Chance to get tickets. It's amazing to celebrate the 10th anniversary of this special event.  Many of you have been a part of the event, and we ask that you come out to share the morning with us and enjoy the 10th anniversary.

Can't attend, but would love to support Mackenzie Health Foundation and the Domestic Abuse and Sexual Assault Centre, please donate online. Thank you

Congratulations to Andrek and his wife Nav for getting married this past month. 
We had a great time attending the ceremony and reception. Congrats Andrek!

REFERRALS: Thank you for your referrals. We really appreciate you passing along our name.  If you know somebody who needs a 2nd opinion on their portfolio, or who really needs to focus on planning for the future and setting some objectives, I can help.  Ensuring you have the retirement income you need and paying the least amount of tax along the way is how I enable you to meet your personal financial objectives.  
Quote of the Month:  
"The world works better if we all just do what we're good at"
Dr. Donna Strickland, 1st Canadian woman Nobel Prize winner for Physics (2018 Nominee)
Dr. Strickland, thanks for ensuring you have done what you're good at, and helping the rest of us to recognize the importance of this.
Janine Purves, CFP® , CPCA, CCS  
This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see me for individual financial advice based on your personal circumstances. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd.
Insurance products and services are provided through Assante Estate and Insurance Services Inc. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.
Assante is an indirect, wholly-owned subsidiary of CI Financial Corp. ("CI"). The principal business of CI is the management, marketing, distribution and administration of mutual funds, segregated funds and other fee-earning investment products for Canadian investors through its wholly-owned subsidiary CI Investments Inc. If you invest in CI products, CI will, through its ownership of subsidiaries, earn ongoing asset management fees in accordance with applicable prospectus or other offering documents.
Commissions, trailing commissions, management fees and expenses, may all be associated with mutual fund investments.  Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.  Please read the prospectus and consult your Assante Advisor before investing.

Janine Purves  
Senior Financial Advisor
Assante Capital Management Ltd.
Ph (905) 707-5220
Fax (905) 707-1035
9130 Leslie St.,
Suite 302,
Richmond Hill,
ON L4B 0B9
Visit our website at www.janinepurves.com 
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