Keep connected
Our investment management team is made up of engaged thought leaders. Get their latest commentary and stay informed of their frequent media interviews, all delivered to your inbox.
Summary
- The stock market in Canada had another positive month despite some mid-month weakness due to European debt fears and weakness on the Chinese stock market. The main Canadian index was up 2.2%, lead by a resurgence in the resource sector.
- The Canadian bond market struggled in November as interest rates were pushed higher on the outlook for stronger economic growth in North America and some fears about the return of inflationary pressures.
- Commodity markets edged higher last month with silver and uranium the standout performers, gaining 13.5% and 14.1%, respectively. Gold and oil prices were also stronger while most base metals weakened slightly.
- The Economic data remained positive and appears to be gaining some momentum again in North America. Employment levels in the US appear to be strengthening at last which could increase consumer confidence. Chinese manufacturing also came in above expectations again, showing that growth continues despite higher interest rates.
- In terms of stock sectors, the Basic Materials group lead the overall gains once again with an increase of 4.9%, followed by Energy with a gain of 3.6%. Strength in Research in Motion helped push the Technology sector to a 2.9% monthly gain while the Financial sector once again trailed the overall market, gaining only 0.7%.
- Our Stock Market Outlook is still bullish over the medium-term as economic growth is recovering, profits continue to improve, interest rates remain low and stock valuations are reasonable. Stocks have had strong gains since the recent lows in August and are always at risk of a short-term correction, particularly since investor sentiment levels have gotten somewhat bullish lately, as often seen at short-term market highs. But we view that only as a short-term risk. The overall fundamental outlook argues for higher stock prices over the next few years in our view.
- J Zechner Associates is launching a new pooled fund product on January 1, 2011. The JZAI Global Hedged Growth Fund will be available to all qualified investors through an Offering Memorandum that can be obtained by contacting us. There is an attached file with this letter outlining the strong 3-year performance history of this Fund, some information about the investment strategy of the Fund as well as administrative details. Please have a look and feel free to contact us to find out more about it. (more…)