MAY 2016
Opportunities In A Volatile Market Keith Richards P.14
RRSPs 102: Beyond the Basics - Part 2 Colin S. Ritchie P.9
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MAY 2016
SPECIAL FEATURES At-A-Glance: Split Share Corporations (Part 1 of 2)
Michael Southern 6
RRSPs 102: Beyond the Basics - Part 2
Colin S. Ritchie 9
Baby Boomer Retirement Planning
David Townsend 12
Opportunities In A Volatile Market
Keith Richards 14
Disability Tax Credit – Adaptive Functioning Alert
Ed Arbuckle 17
It Ought To Be A Snap!
David Ensor 19
Guaranteed Income–For Life: What You Should Know About Life Annuities
Ivon T. Hughes 21
What Investors Need To Know About Benchmark Indices
Gail Bebee 24
Bearish On Berkshire Hathaway? Don't Bet Against Buffett
Richard Morrison 28
Parking Pitfalls For Commercial Tenants
Jeff Grandfield and Dale Willerton – The Lease Coach 31
Is Now The Time To Use Currency Hedging?
Dan Bortolotti 32
Navigating The Markets In 2016
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T
wo items this month: First, an interesting research piece crossed our desk recently. According to S&P data, there is more than $1 trillion in short sale positions right now in the US market. One. Trillion. It’s a big number. The note goes on to say that this is a larger short position than at the depth of the financial crisis, in March 2009. The conclusion most investors might assume is that this is bad. For that much money to be betting against the market surely must mean bad things are about to happen. If the ‘smart money’ is worried, maybe you should be as well? Well, the article concludes that this level of negativity is, in fact, very good for the market. $1 trillion in future buying power. If you think about it, during the financial crisis there was lots of short selling as well. All those short positions needed to be covered and shares needed to be bought, when, yet again; the world did not in fact end. Glass half-full or half-empty? You decide. But we have not, in 40 years of investing, met that many successful bearish investors. Second, but similar, we often stress to investors the importance of not panicking. However, nothing we can say can work any better than actually looking at the market itself in the first three months of 2016. There was total panic in January, with the market down 12% or so, the worst start to a year—ever. Now, 95 days into the year (at the time of writing) the TSX is up 2% year-to-date. All those who panicked missed a big rally. Just sayin’.
NOVA SCOTIA 902-717-8153 PEI Frank Driscoll
Charlottetown
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Peter Hodson 902-569-3601
4 z Canadian MoneySaver z https://www.canadianmoneysaver.ca z MAY 2016