Technology, Then Everything Else
- At home, all sectors of the S&P/TSX Composite index fell, producing a negative total return of -1.6% for this quarter, and of 0.7% for the year so far. However, we have been very cautious about the domestic market for quite some time already.
- In the United States, the S&P500 Total Return was a lacklustre 0.4% for the quarter, but a more convincing 5.4% for the year, as expressed in Canadian Dollars. It remains to be seen whether the market has any more room to grow, but investors in technology stocks certainly seem to believe so. Buyer beware…
- The main story is taking place in the Old World. Europe is the strongest market with a return on the D.J. Stoxx 50 of 3.2% for the quarter, and 8.6% for the year, as expressed in our currency.
- Our Loonie surprised most observers by increasing in value against the greenback. The U.S. Dollar lost 2.6% during the second quarter of 2017, and 3.6% so far in 2017 relative to the Canadian Dollar. The newfound strength of our currency, combined with the American administration’s protectionist measures, could have a very cooling effect on cross-border economic exchanges. However, a stronger dollar allows to makes some stock purchases at a lower cost. Snowbirds may want to consider taking advantage of these favourable conditions to buy at least part of their U.S. dollars now, rather than wait for autumn to do it.