Spring, 2015
The Importance of Investment Discipline
Jeff Curtis
Investment Advisor
Tel: 613-967-2250
[email protected]
Fear and emotion continue to be primary drivers of stock market momentum and
opinion, as judged by interactions with investors and corporations over the past
several months. However, fundamentals prevailed as investors realized quickly that
the issues stemming from emerging markets and Europe were old news and Ebola was
not going to become a pandemic. Fundamentals once again defeated fear, highlighting
the importance of maintaining investment discipline and strategy.
Now, even as doubts remain about the resiliency of the U.S. in the face of rising
interest rates, slower growth in emerging markets and Europe, and deflationary
pressures stemming from the slide in commodities, it is important to stay disciplined in
your long term investment strategy.
We continue to believe a burgeoning capex recovery is occurring within the U.S. due to
the defensive nature of corporate America over the past few years. This suggests that
sooner or later companies will need to invest in their businesses to provide themselves
and investors with future growth opportunities.
Suzanne Gould
Investment Representative
Branch Operations Manager
Tel: 613-967-2251
[email protected]
210 Front Street
Belleville, ON K8N 2Z2
Toll Free: 1-800-647-3998
www.jeffcurtis.ca
It’s our preference to send
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and more efficient client service.
Please send us your email address.
Our view is that the U.S. market is transitioning toward the second stage of a secular
bull market and stocks are poised to provide average returns, similar to historic norms.
Since volatility is typically higher during this stage, we may encounter corrective
phases, but we believe that U.S. stocks remain positively disposed relative to other
regions and asset classes.
Although the Canadian stock market looks to underperform the U.S. market again this
year, caused by external inputs such as slowing emerging markets, Canada should
become increasingly correlated with the U.S. As such, we expect Canada will post
another positive year driven by U.S. strength.
With headlines in the news calling for a housing correction in Canada, Financials
remains one of our favored sectors. Pristine balance sheets, steady earnings, and
consistent dividend growth will likely reward the sector with higher ROEs and multiples
for years to come.
As always, please don’t hesitate to contact us if you would like to discuss any concerns,
or to review your portfolio.
Source: BMO Nesbitt Burns Redbook, Second Quarter 2015, Brian Belski
Federal Government Proposes Enhanced Tax Measures to Assist Canadian Families
On October 30, 2014, the Federal Government announced a series of proposed tax measures to provide additional benefits
to Canadian families with young children. The Government’s proposed new measures consist of the following:
The Family Tax Cut, a new federal non-refundable credit of up to $2,000 for couples with children under 18, effective as of
the 2014 taxation year.
An enhancement of the Universal Child Care Benefit that will provide an increased benefit of $160 per month for children
under the age of 6 – up from $100 per month, and a new benefit of $60 per month for children aged 6 through 17, effective
January 1, 2015. The enhanced Universal Child Care Benefit will replace the existing Child Tax Credit for the 2015 and
subsequent taxation years.
A $1,000 increase in the maximum dollar amounts that can be claimed under the Child Care Expense Deduction, effective
for the 2015 taxation year. This means that the maximum amount will increase to $8,000 from $7,000 per child under age 7,
to $5,000 from $4,000 for each child aged 7 through 16 (and infirm dependent children over age 16), and to $11,000 from
$10,000 for children who are eligible for the Disability Tax Credit.
As previously announced on October 9, 2014, the Government also proposes to double the Children’s Fitness Tax Credit
from its current limit to $1,000 for the 2014 and subsequent tax years, and make the credit refundable for the 2015 and
subsequent tax years.
For more information on these proposed measures, please see the Government of Canada’s, Department of Finance
Backgrounder (http://www.fin.gc.ca/n14/14-184-eng.asp)
BMO Nesbitt Burns Meridian Program – Consider Yourself Connected
The BMO Nesbitt Burns Meridian Program offers all of the benefits of full-service investing – face-to-face or via Internetbased systems – along with the freedom to decide how involved you want to be in the investment process, for one allinclusive fee.
This innovative program provides you with instantaneous online access to a wealth of expertise and information – including
real-time quotes, and on the investment opportunities identified by the BMO Nesbitt Burns Research Team – wherever and
whenever you want. Should you wish, you also have the option of making equity and mutual fund trades on-line. At the
same time, we are always here to help – from guiding you in establishing and monitoring a personal investment strategy, to
providing suitable investment ideas and executing trades, to giving you feedback on your own ideas, and more. If you would
like to find out more about the Meridian Program, please call us at 613-967-2250.
Tax Free Savings Account (TFSA) Reminder
In 2015 the annual TFSA contribution limit is $5,500. Any unused contribution room can be carried forward for use in future
years. If you do not already have a TFSA, you may be eligible to contribute up to $36,500. Your TFSA contributions grow tax
free and your funds can be withdrawn tax free at any time.
Jamie Lytle’s Retirement
As you may be aware, after 17 years with BMO Group of Companies, Jamie Lytle has decided to retire. Jamie has worked
closely with us in our team since joining BMO Nesbitt Burns in 2005. He has been a valuable team member and has
provided excellent service to our clients. We wish him the best as he begins this new chapter in life.