Ottawa Investment Advisor John Bruce

Protecting Your Portfolio

June 11, 2019

Signs of a possible slowing global economy and the potential impact that it could have, has many of my clients concerned about the next recession. The U.S. economy hasn’t been in a recession since the last one ended in 2009. While most economists don’t see that happening in the near future, it will happen sooner or later. Now might be the time for us to see how resilient your portfolio would be to a U.S. recession and the steps you should take.

Here is what we can do to be more defensive.

  1. Increase our cash holdings – This does not mean to sell out and liquidate your holdings. What I am saying is that with so many headwinds capable of pressuring stock prices down over the near term, let’s keep some cash available to go shopping for our favorite companies when they go on sale.
  2. High-Quality Dividend Stocks – Look to add high quality companies that have succeeded in the past and should continue to do so in the future. These companies generally have a high return on equity, pay high dividends and are not subject to market cycles. The dividend income streams may offset some of the share price decline that is inevitable and when the market resumes its upward trajectory, can make a big difference in your rate of return coming out of a recession. I have 2 Exchange Traded Funds (ETFs) that I have scouted out specifically for this purpose. Please call me to discuss them and their suitability for your portfolio.
  3. Preferred Stocks – These stocks are a hybrid having both equity and debt components. They are interest rate sensitive so that means if rates go up their prices go down and vice versa. However, they pay out a specific percentage and the dividend gets better tax treatment with the dividend tax credit then what you would get with a bond or GIC that pays the same rate. These investments are not always as liquid as common stock, and should be considered as long term holds for the steady income they pay. I prefer stocks issued by banks, life insurance companies and utilities.
  4. Emerging Markets – In a recession, long-term holdings should still be focused for growth, with some exposure outside the U.S. For this I prefer the emerging markets for the younger demographics and faster gross domestic product growth rates, which likely won’t change through recessions. Compared with long-term U.S. market valuations, emerging markets remain cheap. Lower valuation means higher return expectations. The price-earnings ratio for the MSCI Emerging Markets Index (EEM), which captures large and mid-cap representations across 24 emerging market countries, was 11.58 as of May 30th. That is good value.
  5. Commodities -Commodities are often uncorrelated to stocks, and a small allocation to a diversified commodity ETF, such as Invesco DB Commodity Index Tracking (DBC) can add portfolio diversification. Rising prices may cause recessions, and this inflationary effect can support real assets like commodities while hurting stocks. Commodities may also fall, but normally not as much as stocks. Your commodities allocation shouldn’t be more than about 5 percent of the total portfolio.

In Conclusion

We have been taking profits on some of our overweight positions, so you may have noticed the cash and cash equivalent holdings have been on the rise. This is all part of preparing for the next cycle in the economy. I do not see a recession coming anytime soon but the increasing hostilities in the US – China trade negotiations could be the kind of event that disrupts the economy.

Please call me to discuss how we will prepare you to manage your investments in turbulent economic cycles.

John S. Bruce

Senior Investment Advisor
Private Client Division
Direct Line- 613-491-3344
Fax- 613-491-2292
Toll Free- 866-860-4190
Email- jbruce@mackieresearch.com

https://www.creatingwealth.ca

http://www.mackieresearch.com

Assistant – Brian Donegan
Direct Line – 416-860-7787
Toll Free – 1-844-860-7787
Fax – 416-860-7671
Email – bdonegan@mackieresearch.com

First Quarter 2019  

April 12, 2019

Global capital markets reversed course after a notably difficult end to 2018, rebounding strongly to post mainly positive results for the first quarter of 2019. Equity markets appeared to be lifted by the prospect of easier monetary policy, while bond markets benefited from economic data showing slowing global growth.

The MSCI World Index, which reflects equity market results for 23 developed market economies, climbed 10.3% in Canadian dollar terms, with broad-based gains across markets in North America, Europe and Asia. In the U.S., the S&P 500 Index finished the quarter with a gain of 11.3% (also in Canadian currency), led by strong results for the information technology, energy and industrials sectors. Emerging markets equities also made gains during the quarter.

The Canadian benchmark S&P/TSX Composite Index posted a robust quarterly gain of 13.3%. Although most sectors added value, Canada’s resource-heavy market was particularly buoyed by higher oil prices, while the industrials, information technology and health care sectors also performed well.

The equity rebound came despite economic data indicating growing slack in the global economy, and central banks responded by striking a more dovish tone in the first quarter. After moving to raise interest rates several times in 2018, the U.S. Federal Reserve left rates unchanged and put further increases for 2019 on hold. Yields for 10-year U.S. Treasury Bonds moved lower through the period as bond prices rose. The Bank of Canada also left rates unchanged, and 10-year Canadian government bond yields declined as investors discounted the probability of further rate cuts in the near term.  The FTSE Canada Universe Bond Index, a broad measure of Canadian government and corporate bonds, returned 3.9% for the quarter.

Since the bull market in North American equities began more than 10 years ago, investors have drawn confidence from the gradual expansion of the global economy, particularly in the U.S. where corporate earnings have been healthy and employment, housing and consumer spending data have been strong. However, late in the economic cycle, corporate earnings are slowing, along with global economic growth. While interest rates remain low and help to support business investment and equity prices in the near term, the market volatility we have seen over the past few quarters may become a more common occurrence as the cycle matures. The fourth quarter’s steep decline and the dramatic reversal in the first quarter of this year is a timely reminder of how quickly markets can turn, and underscores the importance of staying invested for the longer term.

Given this backdrop, I continue to believe investors are best served by a diversified approach to investing – one that provides exposure to a broad range of actively managed investments from equities to bonds, depending on your personal objectives.

In closing, I would like to thank you for your business. If you have any questions or concerns about your account, please do not hesitate to contact my office.

Sincerely,

John S. Bruce
Senior Investment Advisor
Private Client Division
Direct Line- 613-491-3344
Fax- 613-491-2292
Toll Free- 866-860-4190
https://www.creatingwealth.ca

http://www.mackieresearch.com

Assistant- Brian Donegan
Direct Line- 416-860-7787
Fax- 416-860-6841
Email- bdonegan@mackieresearch.com

How did the markets do in 2018?

January 16, 2019

I would like to wish you and your family a Happy New Year. With this letter, I hope to provide you with a brief overview of how investment markets have performed over the past year, as well as some perspective for evaluating your portfolio’s results in this context.

How did the markets do last year?
Well…not very well. It can easily be referred to as the year that no investment strategy worked. After an unusually calm year of solid performance for capital markets in 2017, investors experienced a much bumpier ride in 2018. Downward volatility resurfaced in the first quarter. Though markets moved generally higher through the summer months, a sharp sell-off in the fourth quarter meant that most asset classes registered negative returns for the year. For Canadian investors in foreign markets, losses were mitigated somewhat by the weakness of the Canadian dollar, which declined about 8% relative to the U.S. dollar for the year.

U.S. equities posted some of the best results among global assets in 2018, with the S&P 500 Index reaching an all-time high and setting a record for the longest bull market on record in the third quarter. After the fourth quarter sell-off, however, the index finished the year with a loss of 4.4% (a gain of nearly 4% in Canadian dollar terms). Canada’s S&P/TSX Composite Index, meanwhile, was weighed down by themes that included plunging energy prices as well as weakness in materials and financial services. The Canadian benchmark finished the year with a loss of 8.9%. From January 1, 2018 to Jan 1, 2019 the TSX went from 16,310 to 14,347.20 (a loss of 12.03%) and the Dow Jones fell from 24,824.01 to 23,346.24 (a loss of 5.95%). The MSCI World Index, a broad measure of developed market equities, fell 8.2% in U.S. dollars (-0.2% in Canadian dollars).

Central banks in North America continued to gradually raise interest rates throughout 2018. Ten-year U.S. and Canada government bond yields rose and peaked early in the fourth quarter, but fell through November and December to end lower for the year. The FTSE TMX Canada Universe Bond Index, which broadly reflects results for the Canadian government and investment-grade corporate bond market, gained about 1.4% over the 12-month period.

Some perspective on volatility
Although it is always difficult to pinpoint a single reason, several economic and geopolitical developments have been linked to 2018’s market gyrations. These include increasing trade friction between the U.S. and its trading partners, particularly China, and the fraught Brexit negotiations between the U.K and the European Union. Rising short-term interest rates in North America are leading to tighter financial conditions, while slower economic activity has weighed on commodity prices – particularly oil – and the materials and energy sectors.

Regardless of the cause, there is no doubt that market turbulence can be unsettling for investors, and last year’s volatile performance was particularly surprising following last year’s steadiness. The reality, however, is that downside market volatility is normal.

The chart below shows that in most years, the S&P 500 will experience several days in which the value of the index drops by 2% or more. In this context, 2017 was an outlier with nearly non-existent volatility. Last year, with 15 days registering losses of 2% or more, the level of volatility for the index returned to a more “normal” range.

Downside volatility is normal
The number of days the S&P 500 fell by -2% or more

The fact is, market volatility is not always a bad thing. Professional money managers often welcome market declines as a necessary ingredient for positive returns as it creates opportunities to add to existing positions or buy higher-quality businesses at reduced prices. In 2017, asset prices remained elevated, providing few opportunities to shop for “bargains.”

Furthermore, it is nearly impossible to predict when market swings will occur. Studies have shown that investors who attempt to time the market – that is, sell before a downturn and reinvest when markets are poised to rise – often end up missing the best upside days and underperform relative to those who stay invested. Markets do not advance in a straight line, but historically the long-term direction for equities has been up.

What’s in store for 2019?
In contrast to last year’s consensus outlook that pointed to a synchronized global economic expansion, many experts now believe we are in the late stages of the economic cycle, with global growth slowing and downside risks increasing. Nevertheless, developed economies are expected to grow throughout the coming year and inflation remains moderate. Global interest rates are low by historical standards, allowing corporations the flexibility to strengthen their balance sheets and invest in the future of their businesses. These conditions suggest a cautiously optimistic outlook for markets in 2019.

My advice: stay diversified, and invest for the long term

It can be difficult to set aside short-term distractions and maintain a long-term perspective when negative headlines dominate as they have in recent weeks. But looking back over the longer term, the most recent market decline can be seen as a setback in a strong run upward. From its lows reached following the financial crisis in March 2009 to the end of last year, for example, the S&P 500 was still up more than 270%.

I believe the most important action to take as an investor is to create a sound, diversified investment plan that takes your time horizon and tolerance for risk into account, and then to stick to that plan through periods of short-term volatility. As asset classes do not typically perform in a correlated fashion, diversification can help to insulate your portfolio from the highs and lows, and provide a smoother experience over time.

In closing, I would like to thank you for the opportunity to work with you as your Investment Advisor. If you have any questions or concerns about your investments, or if your personal circumstances have changed, please do not hesitate to contact my office, toll free at 1-866-860-4190 or directly at 613-491-3344.

Sincerely,

John S. Bruce
Investment Advisor

Time to buy discounts

November 22, 2018

With the markets selling off and giving back all their gains for the year on the Dow Jones in the last two months, and the TSX going back to levels of 2016, I have been looking for a conservative approach to buying into these discounted areas with the use of specific mutual funds that have an excellent assortment of many of the companies that are on sale yet still have strong earnings and a promising future.

I see a strong economy that is not over heated by any inflationary definitions and believe that the recent shakeout and selling is once again a very good opportunity to buy into a discounted market for the longer term.

What people don’t understand is that if you are a long term investor you WANT the market to be down and stay down when you are buying and then when it reverses you can sell bits and pieces as it peaks again. That is what I have done with you and that is why we have been sitting on cash for quite a while.

The market may go lower, it may take off. Who knows? What I do know is that in the long run it always goes higher and when the economy is still strong you want to buy at discounted prices.

I will be sending you one page summaries of the specific mutual funds that I have assembled for you and will call you to discuss allocation of cash to them.

I am also looking at placing many of our holdings that qualify, into a dividend reinvestment plan so we can use the income our stocks pay us to acquire additional shares at these lower prices. This too I will discuss with you when we speak.

Call me if you have any questions at 613-491-3344 or toll free at 1-866-860-4190.

It may be challenging times for the current market, but I for one like to see the companies I want for the long run encounter short term drops so I can get more.

Remember this quote from Warren Buffett- “Price is what you pay, value is what you get. Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”

John S. Bruce
Investment Advisor

November 2018 Update

November 2, 2018

I would like to prepare you for what is likely a decline in your accounts from the previous month. This recent sell- off, like most sell- offs, has occurred fast and with an apparent fury that it has created fear with investors. As of today’s date the Dow Jones Industrial Average, the NASDAQ and the S&P 500 have given up all their advance for the year. The TSX has fared worse and gone back to levels achieved two years ago.
The markets are moved by fear and greed and fear has taken hold.
I saw this coming and prepared you for this event with previous letters in July and August and again in October. We took profits when we could and built up our cash. What we have that has gone down has not necessarily gone down because of anything intrinsically bad within the investment. What has happened is that we have more sellers than buyers and that is sending the market lower.
That is the good news in so far as it is giving us a chance to buy the best companies in the market at sale prices.
Many are saying it is the end of the bull market, or it’s 2008 again. It is not 2008 again. We are in a very different set of circumstances than we were in 2008. I have attached a report (click on this underlined area) from Drummond Brodeur, CFA, Senior Vice-President and Global Strategist with Signature Global Asset Management. He is one of a few fund managers that I value and respect.
His perspective is encouraging and factually supported. I invite you to read it.
Please call me if you have any concerns at (866) 860-4190 or direct at (613) 491-3344.
Sincerely,

John S. Bruce
Investment Advisor

Third Quarter 2018

October 18, 2018

During a period characterized largely by trade uncertainty, global asset markets delivered mixed results for the third quarter of 2018, with the U.S. equity market reaching new highs and outpacing many of its global counterparts.

U.S. equities posted strong results, supported by positive economic data, healthy corporate earnings and favorable business conditions that included corporate tax cuts. The S&P 500 Index, a broad measure of U.S. equities, gained 7.7% for the quarter and was up 10.6% for the year-to-date in U.S. dollar terms. Although the Canadian dollar has lost ground relative to its U.S. counterpart over the course of the year, it strengthened moderately in the most recent three-month period, resulting in a 5.9% quarterly return for the index in Canadian dollars and 14.1% for the year-to-date.

The MSCI World Index, which represents large and mid-cap equity performance across 23 developed market countries, also posted positive results for the period, gaining 5.1% for the quarter and 5.9% for the year-to-date in U.S. dollars. However, much of the gains for the global index resulted from the outperformance of U.S. stocks, as several local markets in Europe and Asia posted moderate losses for the quarter. Emerging markets also continued to sell off on rising interest rate concerns, as they have since early in the year.

The Canadian S&P/TSX Composite Index dipped slightly, losing 0.6% for the quarter, but the benchmark remained up about 1.4% for the year-to-date. The Canadian market’s muted performance for 2018 resulted from weakness in the energy and materials sectors, the uncertainty of trade talks with the U.S. and a slight decline in the value of the Canadian dollar versus the U.S. dollar.

Interest rates continued to move upwards over the quarter. The Bank of Canada left its benchmark interest rate steady at 1.5% in September following a 25-basis point hike in July. The U.S. Federal Reserve, meanwhile, responded to the labour market’s strength and the continued growth of economic activity by raising its target rate to 2% to 2.25%, its highest level since April 2008. Ten-year government bond yields in Canada and the U.S. rose throughout the period, with the FTSE Canada Universe Bond Index, which measures government and corporate bonds in Canada, returning -1.0% for the third quarter and about -0.4% for the year-to-date.

Equity markets around the world have made a strong recovery in the more than 10 years since the global financial crisis, and in August the current bull market became, by some measures, the longest in history. Though the economic cycle is entering its later stages, business conditions in many regions remain constructive, and it is impossible to predict when the next downturn will occur. Some studies, in fact, have shown that attempting to “time the market” by selling your investments before a downturn can be counterproductive, as investors often miss out on significant market gains after they have cashed out. Rather, having a personalized long-term investment plan that reflects your objectives – and staying true to that plan through market highs and lows – typically yields better results.

In closing, I would like to thank you for your business and remind you that Brian and I are here to help. If you have any questions about your portfolio, please feel free to contact my office.
Sincerely,

John S. Bruce

Investment Advisor

The Market is on Sale

October 16, 2018

The market went on sale this week!

When you hear that your favorite store is having a big sale, the reaction should be excitement and enthusiasm and then you check your bank account and you see what you can afford to buy. Right?

Not so if it is the stock market on sale. Many people do the opposite. They freak out, get scared and contemplate throwing out all their favorite items, instead of buying more.

This is the market. This is how it goes. Up and down and up and down and sometimes with such volatility that it can make your head spin.

So what do you do?

You treat it as any other store that decides to have a sale. You evaluate what has great value and you buy more.

What should you not do?
Sit and wait for the sale to end then consider buying.

So with this in mind, please call me asap so I can offer suggestions of what companies are on sale and how we can buy good value.

1-866-860-4190 or direct at 613-491-3344
Sincerely,

John Bruce
Investment Advisor

The information in this letter is derived from various sources, including CI Investments, Signature Global Asset Management, Cambridge Global Asset Management, Globe and Mail, National Post, Bloomberg, Yahoo Canada Finance, and Trading Economics. Index information was provided by TD Newcrest and PC Bond, and all quoted equity index returns are on a total return basis (including dividends). 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 contact me for individual financial advice based on your personal circumstances.

August 2018 Update

August 8, 2018

August 8, 2018

I hope you are well and are enjoying the warmer weather. I wrote to you three weeks ago about the market environment and the risk that is in the markets. I wanted to provide a brief update for you on what is unfolding now that earnings are being released.

There is an expression that states, “Buy on rumour, sell on news”. Earnings period is a practical application of this belief. As earnings are coming out, many companies are being sold -off by investors regardless of whether the news was really good or mediocre. I tend to see this type of action occurring when the market is getting over extended. That is to say, when the stock indexes have done well and have reached new highs.

Interest rates are rising in the U.S. and the 10 year U.S. Bond Yield hit a high of 3.128% in the middle of July. When bond yields rise, many conservative investors will start to shift out of stocks and into bonds, increasing the number of sellers in the stock market. This puts downward pressure on stock prices.
Add to this the escalating trade war between the U.S. and many other countries and you will have a good argument to take profits if valuations get too lofty, build a good value cash position and dividend paying companies–when the prices start to drop.

When will this happen? Who knows? What I do know is that there is a shift building and that is when I want to keep my eyes out for discounts and value when it happens and have the cash to do it.

I will talk to you if we need to make any adjustments to your portfolio with our existing holdings and let you know when I think the time is right to add to our stocks or even buy some good value bonds.

If you have any questions I will be back in the office on Thursday August 16th. In my absence please direct any inquiries to my assistant, Brian Donegan at 1-844-860-7787.

I wish you and your family a safe and pleasant summer.

Sincerely,

John Bruce
Investment Advisor

Client Letter Q2 2018

July 24, 2018

I hope you are well and are enjoying the warmer weather. With the second quarter of 2018 having recently drawn to a close, I wanted to provide a brief update for you on some of the main themes that emerged for investment markets over the period.

Following a particularly volatile start to the year in the first quarter, many global equity markets delivered somewhat steadier returns in the second quarter. The MSCI World Index finished the period with a gain of 1.9% in U.S. dollar terms, while the S&P 500 Index, a broad measure of U.S. stocks, rose about 3.4%. Overseas results varied, with gains for equity indexes in England, France and Japan offset by losses in Germany and several Asian markets. Emerging markets exhibited the largest drawdowns, with the MSCI Emerging Markets Index losing 7.9% for the three months in U.S. dollars. I saw this coming and we sold our positions before it became negative.

In Canada, the S&P/TSX Composite Index performed well, registering a broad-based advance of 6.8% for the quarter. Stronger oil prices buoyed energy shares, and the health care, information technology and financial sectors all added to performance. The Canadian benchmark has gained nearly 2% for the year-to-date.

The Canadian dollar, meanwhile, declined in value relative to the U.S. dollar over the quarter, enhancing returns in your U.S. RRSP and U.S. TFSA accounts holding assets priced in U.S. currency.  The MSCI World Index, for example, returned 4.1% for the quarter when expressed in Canadian dollars, the S&P 500’s gain was 5.6% and the loss for the MSCI Emerging Markets Index was reduced to 5.9%.

The U.S. Federal Reserve raised its target interest rate range by a quarter of a percentage point for the second time this year at its June meeting, pointing to the continued strength of the labour market and solid economic activity. Economic data for Canada was also strong, but the Bank of Canada opted to hold rates steady through the second quarter, indicating that further increases would likely come later in the year. Ten-year government bond yields in the U.S. and Canada reached a peak for the second quarter in mid-May before declining and finishing the period slightly up. The FTSE TMX Universe Bond Index, which measures Canadian government and corporate bond returns, gained 0.5% for the quarter.

Equity prices in many industries and regions continue to be supported by healthy corporate earnings, relatively low interest rates and strong economic signals. However, challenges in the form of gradually rising short-term rates and inflation, as well as rising global trade tensions, are causing uncertainty in some areas of the market. In this type of environment, the value of strong active portfolio management becomes especially important, as professional Investment Advisors have the knowledge and experience to navigate through challenging market conditions. The escalating trade war that the US Administration is unfolding is very disruptive to the current market. You may find that we have been increasing the cash position in your portfolio. Until some of the impacts of the trade war tension is absorbed, I will be very selective in entering into new positions.

I am taking into account your financial goals and risk tolerances with every decision we make. If you have any concerns about your account or if there have been any changes to your personal circumstances, I would be very happy to discuss them with you – please do not hesitate to contact my office.

I wish you and your family a safe and pleasant summer.
Sincerely,

John S. Bruce
Investment Advisor

The information in this letter is derived from various sources, including CI Investments, Signature Global Asset Management, Cambridge Global Asset Management, Globe and Mail, National Post, Bloomberg, Yahoo Canada Finance, and Trading Economics. Index information was provided by TD Newcrest and PC Bond, and all quoted equity index returns are on a total return basis (including dividends). 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 contact me for individual financial advice based on your personal circumstances.

April 2018 Update

April 27, 2018

In contrast to the relative market calm of 2017, volatility returned to equity markets in the first quarter of this year. Most global markets dropped sharply in early February, with some falling into correction territory (a decline of 10% or more). The initial decline was apparently due to market participants’ concern about rising inflation based on strong U.S. economic data.

Though they recovered somewhat over the ensuing weeks, equity indexes remained choppy through February and March, and many finished the period with negative returns in local currency terms. The S&P 500 Index, a broad measure of U.S. stocks, lost 0.8%, the MSCI World Index fell about 1.2% and developed markets in Europe also declined. Markets in Asia were mixed. Canada’s S&P/TSX Composite Index underperformed its global counterparts, losing 4.5% during the three-month period. The Canadian benchmark is heavily weighted toward sectors that exhibited weak performance for the quarter, such as energy and materials. It also has modest representation in information technology, which outperformed.
The Canadian dollar fell 2.7% relative to the U.S. dollar over the first quarter. As a result, many foreign markets were positive when expressed in Canadian dollars. Including dividends, the S&P 500 Index gained 2.0% and the MSCI World Index was up 1.6% in Canadian dollar terms.

After raising rates in January, the Bank of Canada announced it was maintaining the target for its key overnight interest rate at 1.25% at its meeting on March 7. The central bank raised concerns about the heightened uncertainties surrounding international trade. The U.S. Federal Reserve under new Chairman Jerome Powell raised its target range for the federal funds rate by a quarter point to 1.5-1.75% during its March 2018 meeting. This was in line with market expectations, based on a stronger U.S. economic outlook.

U.S. 10-year Treasury yields rose in the quarter, reflecting the market’s expectations for continued growth and higher interest rates, while Canadian government bond yields were up slightly. Rising yields are generally negative for the prices of bonds and other income securities, and as a result, the FTSE TMX Canada Universe Bond Index, which reflects a wide range of Canadian government and corporate bonds, had a gain of just 0.1% for the quarter.

The re-emergence of equity volatility in the first quarter may have surprised some investors, but it represented a return to normal. In fact, 2017 was unusual for its relative stability. During the month of February 2018, the S&P/TSX Composite Index had three trading days in which losses were greater than 1.50%, while 2017 only had two trading days during the entire year in which losses were greater than 1.50%[i] .

It’s important to remember that market declines are a natural part of investing. Such market movements often present experienced portfolio managers with their best investment opportunities, while passive strategies will remain exposed to the fluctuations of the entire market. It’s also worth noting that this bout of volatility was not driven by a change to company fundamentals. Overall, business prospects remain solid, with continued economic growth, strong confidence levels and favourable U.S. tax reforms.
The developments in the first quarter remind us that markets are highly complex, interconnected, dynamic entities. Given that short-term pullbacks are an expected part of investing, I continue to recommend a long-term, diversified strategy tailored to your individual financial goals.

If you have any questions about your portfolio, please contact me toll free at:
1-888-860-4190 or direct 613-491-3344.

John S. Bruce
Senior Investment Advisor
Private Client Division
Direct Line- 613-491-3344
Fax- 613-491-2292
Toll Free- 866-860-4190
Email- jbruce@mackieresearch.com

https://www.creatingwealth.ca

http://www.mackieresearch.com

The information in this letter is derived from various sources, including CI Investments, Signature Global Asset Management, Cambridge Global Asset Management, Globe and Mail, National Post, Bloomberg, Yahoo Canada Finance, and Trading Economics. Index information was provided by TD Newcrest and PC Bond, and all quoted equity index returns are on a total return basis (including dividends). This material is provided for general information and is subject to change without notice. Although every effort has been made to compile this material from reliable sources; no warranty can be made as to its accuracy or completeness, and we assume no responsibility for any reliance upon it. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances.
[i] For February 2018, the days are February 2 (-1.61%), February 5 (-1.74%) and February 8 (-1.73%). For 2017, the days are May 17 (-1.73%) and February 24 (-1.53%). There were only 5 days with losses greater than 1% in 2017; for the first quarter of 2018 in total there were 11 days with losses of greater than 1%.

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