Canadian Equities - Late to join the party? It’s likely no surprise to hear that Canadian equity markets have lagged over the last few years. Outside temporary periods of commodity-related strength, Canadian equities have been one of the poorest-performing developed markets. In response, we’ve witnessed investors cutting their losses in Canada and focusing their portfolios around global investing as well as in areas like Technology and Health Care. However, we remain confident that our clients maintain a disciplined investment approach. Investors who make the decision to sell their Canadian equities after years of disappointing performance could be leaving meaningful opportunity on the table. We would caution investors about the risks of chasing global equity performance and abandoning Canadian equities altogether as it may be only a matter of time before potential strength once again returns to the Canadian market.
There has been a clear trend of assets flowing into the U.S. and global strategies at the expense of Canadian equity and dividend-oriented strategies.U.S. - Wall Street’s Cheerful Mood ContinuesDespite rising tensions over North Korea’s nuclear weapons testing, a lack of new legislation from the Trump administration, and the devastation left by natural disasters including hurricanes and earthquakes, Equity markets continued their winning streak while volatility remained relatively low. Perhaps not surprisingly, businesses and consumers are cheerful too. The economic data was generally supportive of the cheerful mood, with the Empire and Philly Fed indices both posting better-than-expected improvements in October.The U.S. business cycle expansion is continuing, as reflected in rising employment, moderate real GDP growth, and rising equity and real estate prices. With inflation below target there are good prospects of this expansion achieving a record length.The main risk to this scenario is that the U.S. Federal Reserve (Fed) tightens credit too sharply, not so much by raising interest rates, but by curtailing credit growth in the private sector.
THIS WEEK IN THE MARKETS
Source: Bloomberg Finance L.P. October 13, 2017 to October 20, 2017
High Interest Savings Accounts Now Available We are pleased to announce that we now offer high yield cash savings accounts and GICs to compliment your existing investment portfolios. All deposits are eligible for CDIC insurance. Our Current Savings Account Rates:
1.20% for CAD$ accounts
0.70% for USD$ accounts
Our GIC Rates:
2.28% for 1 Year GIC
2.50% for 2 Year GIC
2.70% for 3 Year GIC
2.80% for 5 Year GIC
Interest rates are quoted per annum as of September 29, 2017 and subject to change without notice. Interest is calculated daily on the opening balance of the account, excluding the date of purchase and is paid monthly on the last Friday of each month, or if the last Friday of any month is a holiday, on the immediately preceding business day. Daily interest will be calculated by multiplying the applicable annual interest rate by the daily opening balance, and dividing that amount by 365 or 366 in a leap year. Only deposits up to $100,000 held in Canadian currency, having a term of five years or less and payable in Canada are insurable under the Canada Deposit Insurance Corporation Act. Deposits held in US currency are not insured by CDIC.
TD insider says bank doesn't want you to know it's outsourcing work overseas
In light of disturbing new allegations, Ottawa should strengthen financial regulations, improve transparency and ensure watchdogs have the resources and mandate they need.
Last week, three TD Bank Group employees told CBC News about the “incredible pressure” they and their colleagues are under to meet sales goals variously described as “aggressive,” “unrealistic” and “insane.”
Alyson Mosher knows a lot of private information about the TD Bank customers whose fraud claims she handles — and now, she says, that information is going to offshore workers without most people's knowledge.
"They see your birth date, your social insurance number, whether you have a chequing account, a savings account, a line of credit, a mortgage, investments, Visa cards, anything," Mosher says.
"They have access to your entire identity."
Mosher and her colleagues used to investigate fraud claims — cases where customers' Visa or debit cards were compromised, or used without the owner's knowledge.
She contacted Go Public after becoming increasingly concerned about the amount of work TD has started sending overseas, instead of having it done by employees in the bank's Markham, Ont., fraud claims department.
Over the past two years, Mosher says work has been transferred to people working in Hyderabad and Chennai, India. Go Public has confirmed those contract workers are employed by the outsourcing giant Tata Consultancy Services.
TD advertises a lot about 'trust'," says Mosher. "Customers are giving the bank a lot of personal information, trusting that it is in the right hands."
Complaint filed with privacy commissioner
Mosher is so concerned about the amount of customer information being shared offshore, she's filed a formal complaint with the Office of the Privacy Commissioner of Canada, alleging that TD is not being upfront with its customers.
In her complaint, she describes how fraud investigations are processed in India, but if a call to a customer is required, the claim goes back to Canada for a representative to handle."The customer is led to believe that I am the person working the claim and that I am the person receiving all of their documents and information," writes Mosher. "Not an agent in India.
"I think if they were being upfront and honest, then they would have these agents from offshore on the phone. To try and hide that seems like they're trying to camouflage that they're sending your information to India."
Mosher has no idea how many jobs have been created in India, but says a colleague sent to India to set up operations told her there were about 120 people doing fraud claims for TD.Full Article can be read vias CBC here
Erica Johnson, CBC News October 20, 2017
In cased you missed it
Below are a few articles that I found interesting on various financial and investing topics.
Canadian University Costs in Six Charts
Students living at home spend $9,300 per year on average, For those who move away, it’s closer to $20,000. We asked 23,384 students how they pay for school and where they spend their money. Here’s what they told us.
Get ready to talk money now, before it's too late
When it comes to money, it's important to instill healthy habits at an early age; not doing so often could create financial problems for children – and their parents – down the road. A new TD Financial Literacy Month survey found parents are worried that without healthy money habits, their children will go into debt as adults (54 per cent), always depend on parents to bail them out of money trouble (36 per cent), and will always be asking for money (32 per cent). Starting money conversations early – and continuing them as children grow – helps set them up for a more secure and confident financial future
The Seduction of Pessimism
Tell someone that everything will be great and they’re likely to either shrug you off or offer a skeptical eye. Tell someone they’re in danger and you have their undivided attention.
Salary or Dividends: Which is better for business owners?
All incorporated small business owners eventually must decide how to pay themselves: by salary or dividends. There’s no simple response, so let’s unpack the process to answer that question.
