The CAPCORP Comment is part of our comprehensive service offering. It presents a quick recap of the week in investments/economics. We get great feedback and we hope you'll give it a read. If you don't find it useful there's an unsubscribe link at the bottom. Please send any comments to Brian Hay, bhay@capcorp.ca.

Welcome to the (final) CAPCORP Comment

For the week of June 5, 2017

“Why do you go away? So that you can come back. So that you can see the place you came from with new eyes and extra colors. And the people there see you differently, too. Coming back to where you started is not the same as never leaving.”

Terry Pratchett, A Hat Full of Sky

Market Update

Major Indexes
1 yr Returns
TSX: 9.23%
Dow: 18.9%
Nasdaq: 26.8%
S&P 500: 15.9%
Dax: 25.6%
HangSeng 24.3%
Nikkei: 21.8%
FTSE: 22.0%

Closing prices (In $US)
$1Cdn=$0.7408
Gold: $1,281.30
Oil: $47.83

Bond Yields
10-yr Cdn 1.43%
30-yr Cdn 2.05%
10-yr U.S. 2.21%
30-yr U.S. 2.87%

The times they are a changin’…

Doing business in an online world has changed the playing field for many businesses and created plenty of options for our clients and devout followers of the Capcorp Comment. Today it seems, we have the ability to reach out to more readers (and future readers) than ever before.

When we started sending out the weekly Capcorp comment back on April 15th, 2002, email “in boxes” weren’t flooded with information the way they are today. Our newsletter may have been one of, if not the only, financial email you received that day or even that week.

The goal of the CAPCORP Comment has always been to add value to our relationship with you by providing education, opinion, and at times levity, through our weekly newsletter. We want you to know that we are here working for you and with you to achieve your financial goals, whatever they may be. That goal will never change; however, the future format of the Comment will.

A few weeks ago we sent out a survey asking for your feedback. We were really interested in finding out your thoughts regarding the Comment. We were pleasantly surprised by the significant number of readers who took the time to provide their replies. We were especially happy to hear that the Comment does add value to your day. What you helped us discover is that the Comment is in need of a good old fashioned overhaul to create a more modern look that will include graphics and links to valuable websites, while keeping true to the core spirit of the Comment.

We ask for your patience as we work towards the new format of the Comment. We do still welcome any further thoughts you may have on what you would like to see when the new version arrives. There is still time for great ideas and suggestions to be integrated. Our new launch date has not been set as of yet, but do not worry, we will not be gone for long.

Until this new and improved Comment is ready, we present as a (final) Closing Comment:

A walk down memory lane

The Capcorp Comment has come a long way since our first edition back on April 15, 2002. So have the markets. So has the world. Technology saw the evolution of the iPod (2001) into an iPhone (2007) then branch into an iPad (2010). Who could forget Skype (2003), Facebook (2004 and went public in 2012), YouTube (2005), a computer dominating Jeopardy (IBM’s Watson in 2011), driverless cars (Google in 2012), Hybrid vehicles, and reusable rockets (SpaceX). We put an exploration vehicle on Mars (2003), Hurricane Katrina hit New Orleans (2005), Pluto was reclassified as a dwarf planet (2006), the BP Gulf Oil spill caused havoc (2010) and the bursting of the housing bubble in the US in 2008. We were there every step of the way.

 

The markets have come a long way as well:

  • TSX: 7,761 to 15,442 (+99%)
  • DOW: 10,093 to 21,206 (+110%)
  • Samp;P 500: 1,102 to 2,439 (+ 121%)
  • Nasdaq: 1,753 to 6,305 (+260%!!!!!)
  • DAX (Germany): 5,244 to 12,822 (+155%)
  • HangSeng (Hong Kong): 10,727 to 25,924 (+142%)
  • Nikkei (Japan): 11,137 to 20,177 (+81%)
  • FTSE (London Stock Exchange): 5,165 to 7,547 (+46%)
  • Gold: $309.20/oz to $1,281.30/oz (and hit $1,917.90/oz in August 2011!)
  • Oil: $27.29/barrel to $47.83/barrel (remembering it hit around $140/barrel in June ’08!)
  • Canada 10-Year Bond: 5.62% to 1.43%
  • Canada 30-Year Bond: 5.84% to 2.05%
  • US 10-Year Bond: 5.15% to 2.21%
  • US 30-Year Bond: 5.78% to 2.87%
  • Overnight Interest Rate: 2.25% to 0.5%

CAPCORP Financial

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3rd Floor
Ottawa, Ontario
K2H 8K7

Phone
613-226-1964

Toll-Free
1-800-267-1964

Fax
613-226-8402

E-mail
info@capcorp.ca

We're on the Web!
www.capcorp.ca

In fifteen years, we sure have seen a lot of change. Now we leave the markets better than we found them in 2002 (well, other than bond rates!). Any guesses on where we will be in the Fall? Feel free to send in your suggestions. No prize, just the pride of the win!

As for the Closing Comment, it feels like we have covered every topic imaginable as it relates to investing, insurance or tax planning. Some of this writer’s favorites comments were written around the Holiday Season when we had some fun by analyzing, “The tax system as explained using elves, egg nog and gingerbread” (Dec. 22, 2014) or “Santa’s global export business” (December 19, 2016). I also enjoyed when we diverged from the norm; do you remember “What are the odds? The Lottery as part of a financial plan” (Nov. 25, 2013) or “On assumptions and other predictive tools” (Apr 29, 2013) which looked at the high correlation between the US market performance and butter production in Bangladesh. It was fun to make those analogies.

It’s hard to sum up 15 years of weekly newsletters into one final edition. It is equally as difficult to know the full impact we had on our readers over those years. We hope you enjoyed reading the Comment as much as we enjoyed writing it. It is encouraging to know that the Comment is only taking a break to revamp, we will return with “new eyes and extra colours”.

To quote C. Joybell C.:

“We can't be afraid of change. You may feel very secure in the pond that you are in, but if you never venture out of it, you will never know that there is such a thing as an ocean, a sea. Holding onto something that is good for you now, may be the very reason why you don't have something better.”

Thank you for your readership and support over the years. We will be back in your “In-box” before you know it. From all of us at Capcorp and Protect, we wish you and your family a safe and enjoyable summer. And, as always…..

Happy Investing!

This newsletter contains general information only and is intended for informational and educational purposes and has been provided to clients and potential clients of CAPCORP Financial Corporation (CAPCORP). While information contained in this newsletter is believed to be reliable and accurate at the time of printing, CAPCORP and Advisors working for CAPCORP do not guarantee, represent or warrant that the information contained in this newsletter is accurate, complete, reliable, verified or error-free. This newsletter should not be taken or relied upon as providing legal, accounting or tax advice. Obtain personal and independent professional advice, from your lawyer and/or accountant, to take into account your particular circumstances.