Canadian MoneySaver - July/August Edition

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

Peter

Peter Hodson 902-569-3601

4 z Canadian MoneySaver z https://www.canadianmoneysaver.ca z MAY 2016