Please be advised that as a result of an incorrect coding in the statement messaging system, the RESP Grant Refusal messages noted below were included on all clients’ November statements in error.
These messages were drafted in collaboration with the Registered Products department and were intended to be included in the December statements for only those clients who had been refused an RESP grant. As well, only the applicable message(s) would have been posted to the RESP statement.
We apologize for the inconvenience this has caused.
Statement Messages:
1. According to government records, the plan beneficiary(ies) has received the maximum amount of CESG for the benefit year and, therefore, you did not receive the CESG. For additional information on RESP grants, please contact your Advisor.
2. According to government records, the Lifetime Contribution Limit has been exceeded for the plan beneficiary(ies). For additional information on Contribution limits, please contact your Advisor
3. According to government records, the plan beneficiary(ies) is ineligible for grants as this is their 18th birth year.
4. According to government records, the plan beneficiary(ies) did not apply for CESG and therefore did not receive it. For additional information, please contact your Advisor.
5. According to government records the plan beneficiary(ies) does not have contributions totaling $100 in four different years or a total of $2,000 in contributions up to and including December 31st of the year the Beneficiary turned 15. For this reason, the application for CESG has not been approved. For more information, please contact your Advisor.
6. According to the government records, the plan beneficiary(ies) has received the maximum amount of CESG and is not eligible for any further grant. For more information, please contact your Advisor.
The TSX is trading 22.4% below its peak in June 2008. The S&P 500 is currently trading at 1998 levels!!! This seems incredible. Both earnings in the United States and dividends are much higher than in 1998. Price/earnings Multiples are much lower.
Thus valuations are much more attractive today than in 1998. That said emotion and sentiment, fear and nervousness are all more heightened today, as European andU.S.debt concerns still lead financial headlines daily.
Our portfolios have outperformed the S & P 500 index since 1998. We also find both indexes attractive on a mid to long term basis.
Stick with your proper asset allocation. Be patient. Don’t follow the news too closely.
Buy, hold, own blue chip, quality, diversified, dividend paying securities.
It seems hard to believe that the major U.S. Index is at the same levels today as 1998.
The London office of ScotiaMcLeod was privileged to have Scotiabank’s Chief Economist, Dr. Warren Jestin, speak to clients on November 22. The following is a brief summary provided by the London Free Press on November 23, 2011.
On the Eurozone financial crisis: “Two years ago all Greece needed was the political will. Now the mathematics has taken over. Right now much of Europe is on the cusp of recession. . . You have issues that will percolate through markets for the next five years. It’s a debt issue and debt issues don’t go away easily.”
On Canada’s economic position in the world: “Things are a whole lot better here than almost anyplace else. We seem to be an island of tranquility in a very stormy backdrop globally.”
On London’s economy: “London economy has always been more stable. . . . The key issue for London is where the new jobs are created. There will be much less assembly-line type production. The auto sector in 2015 will not sell more cars than they did in the best year before the recession because the market is saturated. The growth will be in small to medium firms. They will be skills-based and less U.S. and Eurocentric and more geared to emerging markets.”
On the Occupy movement: “It’s almost entirely based on income distribution and employment opportunities. A growing percentage of the population of the U.S. and Europe has been left behind. They may be taking (down) the tents, but the movement will grow substantially.”
As always, please feel free to contact any member of our team with any questions you may have.
The maker of Blackberry is trading at $19.00 per share. The 52 week trading range is $18.46 – $69.30.
For fiscal year 2011, earnings per share were $6.34.
It is forecasted to make $5.42 per share in 2012. The price/earnings multiple sits currently at 3.50 times current earnings and 4.00 times next years forecasted earnings.
Gus Papageorgiou, the ScotiaMcLeod analyst covering RIM, has a one year target of $45.00. RIM has a new operating system coming out in 2012 for its Blackberry phones and tablets.
It has always been our objective to hold the shares through to the onset of this new operating system. The valuation of RIM is attractive. That said, the share price has been dropping.
Based upon the low valuation (attractive), our analyst’s 1 year target, and the new operating system coming, we are continuing to recommend that investors hold RIM. It is not an overweight position for us.
Should you have any further questions, thoughts or concerns, please feel free to contact any member of The Kelland Wealth Management Group.
Have a great weekend.
We draw your attention as well to an upcoming seminar with Scotiabank’s Chief Economist Warren Jestin, on Tuesday November 22. This is a ScotiaMcLeod London Branch invitation and therefore spaces can only be guaranteed until our seating capacity is reached. There is no cost to this seminar, but we encourage you to respond early if you wish to attend. Full details can be found on our website under the ‘Seminars and Events’ tab, as well as the bottom of page 3 of our newsletter. You can respond to anyone at the Kelland Wealth Management Group.
Have a safe and Happy Halloween with the little ones!
Today is the final day to listen to Rob Kelland’s Market/Economy Conference Call. The call is available until midnight. The phone number and passcode are as follows: 1 (800) 408-3053 passcode 5342222.
We also have a host of informative market related articles for your reading pleasure. Please call us if you would like to receive these.
We wish you and your families a very Happy Thanksgiving.
Germany backs enhanced bailout package.
We see this as a positive. The underlying issue of too much global debt is now on the front burner. This is positive. The road to recovery will be long, slow, and bumpy.
Interest rates remain at all-time lows. In general, Equities are attractively valued but investor sentiment is poor/fearful.
Corporations are in general, in fine shape financially.
Investors need to know their risk tolerance. This must be matched with their desired rate of return, to ensure a proper asset allocation, which is so key to the success of long term investing.
We like blue chip, dividend paying securities on a diversified basis. We also prefer recession resistant names.
We also like preferred shares as an asset class. They are very attractively valued.
Hold cash/bonds/gic’s for their inherent safety, and preservation of capital features.
Always be mindful of fees. We provide our clients with fees that are well below the industry norm.
As always we are here to help, and no question is too small.
ScotiaMcLeod has produced an updated version of “Here’s What We’re Thinking”, as of September 22nd. My views concur with this piece to a large extent. Our Chief Portfolio Strategist Vincent Delisle, one of the best in Canada, in my view, prefers equities to bonds over the next 12-18 months. He feels that ‘frightening headlines are fuelling investor paralysis, the velocity of some of the declines seems to overshoot the actual damage to the economy and profits.’
As equity markets around the world continue to exhibit extreme volatility, we will monitor the situation and update you via these flashes.
Sentiment is very poor. Fear is high. Valuations are attractive in many sectors. As I stated in my Conference Call last Friday, investors are faced with tough choices. Interest rates are at all time lows. Stock markets while attractive are showing the fear that currently exists.
Please listen to our Conference Call which is 16 minutes in length. It is available for a few more weeks toll free – 1 (800) 408-3053 passcode 5342222 #.
As always, we are here to help and no question is too small.
“The Wealthy Barber Returns” is an entertaining and pragmatic new book containing a great deal of practical financial advice for ordinary Canadians. I highly recommend it. You might even find it “on sale”!
Phone: 519-660-3229
Toll Free: 1-800-265-1242
Fax: 519-660-3264
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