Canadian equity market improving

Money Reporter, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846

You may have to take a long-term perspective to see it, but the Canadian equity market is gradually improving. We remember looking at the S&P/TSX Composite Index from April to June this year, when the index seemed stuck in the 12,200 to 12,400 range.

Then it hit 12,500 in July, then 12,600 in August. Then 12,800 in September. Fast-forward to today, and the market is over 13,300, almost 13,400. That kind of slow but steady, constant growth tells us these gains may be sustainable. And that’s good.

Over the past four weeks, since our last edition of the Income Trust Guide, the TSX is up 3.77%. That’s about half of the 7.60% that the benchmark is up so far this year. And it’s up 9.69% in the past year.

While that’s good, it’s never good to have all of your eggs in the Canadian basket. Note that the Dow Jones Industrial Average is up over 20% so far this year, the S&P 500 more than 24%, and the Nasdaq Composite almost 30%. If you haven’t diversified some of your capital to south of the border, you’re missing out. In the past month those three markets are up 3.44%, 3.96% and 3.36% respectively, and the Canadian dollar is down 1.24%, so those returns are
even better than they look to a Canadian investor in U.S. stocks.

Meanwhile, can we say “told you so?” One month ago, again in this space, we predicted that by October 17 the U.S. Congress would ‘miraculously’ strike a last-minute deal on the self-manufactured ‘crisis’ that was the debt ceiling.

We recommended that, as an investor, you not panic and sell stocks. The outcome was exactly as we scripted it.

Income Trust Indexes — Comparative Performance Figures

Absolute Performance Closing level Last 4 wks YTD Last 12 mos 3-yrcompound
S&P/TSX Composite Index 13378.33 3.77 7.60 9.69 4.93
S&P/TSX Total Return Index 39173.61 4.90 9.70 12.50 12.30
S&P/TS 60 771.41 4.06 8.08 10.56 4.20
S&P/TSX Capped Income Trust 170.51 0.49 -9.56 -6.15 21.65
S&P/TSX Capped REIT 148.65 0.49 -12.48 -9.41 12.44
Other Indexes
Dow Jones Industrial Average 15761.78 3.44 20.28 22.99 40.82
S&P 500 Index 1770.61 3.96 24.15 28.32 47.65
NASDAQ Composite 3919.23 3.36 29.80 34.92 55.64
Canadian Dollar ($US) 0.95 -1.24 -5.07 -4.50 -3.73
Oil 94.60 -7.27 3.03 9.90 11.45
Natural gas 3.56 -5.75 6.21 1.60 -6.32
Gold 1284.60 1.29 -23.34 -25.78 -5.92
S&P/TSX 60 VIX 13.02 -9.08 -14.06 -25.51 -24.70
DEX Universe Bond Index 885.90 1.07 -1.04
DEX All Government Bond Index 857.00 1.05 -1.77
DEX All Corporate Bond Index 992.80 1.16 0.80
S&P/TSX Preferred Share Index 806.89 0.98 -5.85 -5.70 -6.80


Money Reporter, MPL Communications Inc.
133 Richmond St.W., Toronto, ON, M5H 3M8. 1-800-804-8846

 

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