WEALTH Matters — Winter 2010-2011


The year 2010 turned out to be a good year for equity and bond investors alike. It was the first time since 2005 that stocks, bonds, commodities and the dollar all rose in the same year.

Page and Associates ltd:

Phone:    905-884-5563

Fax:         905-884-3365

E-mail:     experience@askpage.com

E-mail this page to a friend

Click here to send your friend or friends a link to this newsletter. Otherwise they’ll have to subscribe for themselves, or wait 3 months to see it in our back issues.

Mutual Funds and Segregated funds provided by Fund Companies offered through

Worldsource Financial Management Inc. sponsoring mutual fund dealer.

All other services provided by Page and Associates Ltd.



Financial Strategies

Our Team

Our Service

About Us


Resources on financial planning and investment management, including today's best GIC rates, access to your account online, links to a variety of web-based resources.Subscribe to our financial planning newsletter, or read articles from past issues.Read about a variety of financial planning and investment management strategies.Meet the members of the Page and Associates financial planning and investment management team.Find out how Page and Associates can help you plan your financial future.An overview of Page and Associates' history.Home page of the Page and Associates website.

EquitiesThe chart shows the Canadian TSX60 (blue) and US S&P500 (red) indices over the past 10 years. The Canadian index is up 17.6% for the year and is within 25% of it’s 2008 peak. The US S&P500 index is up 11.2% in Canadian dollars, despite the 3% rise in the value of the Canadian dollar. The US index is within 20% of it’s 2008 peak. The MSCI World global stock index is up 8.7% in Canadian dollars, led by Asia with a 14% gain despite a 14% decline in China. Such high growth rates are typical of a post-recession recovery year.


Interest Rate Trends

Investment Market Commentary


New issues of our quarterly newsletter are only available by subscription. As a subscriber, you have our permission to pass a copy of the current issue or web links to family and friends.

After three months, we add the most recent issue to our online catalog of back-issues, reproduced in the Newsletters section of this website.

Here are the articles in the current edition. Just click the article names to view each one.

Fixed Income – North American and European interest rates stayed low throughout the year. Risk premiums on corporate debt continued to drop from average 2009 levels, enhancing bond prices, but corporate yields are still 0.5%-1.5% higher on average than the yield on government debt(see the chart). Late year equity market gains and improving consumer spending rekindled inflation fears and depressed prices somewhat. The US Federal Reserve continues its Quantitative Easing, which should reduce government bond yields and encourage investors to seek higher returns in corporate debt. While concerns remain about European sovereign debt, they are much less acute than in 2010. China has recently been buying Spanish bonds, confirming its confidence in the weaker Eurozone countries. A common view is that corporate investments offer a better return expectation than government bonds per unit of risk.

2010 started strong but was set back mid year with concerns over European national debts. Early expectations of rekindled inflation were soon quashed by poor job gains in the US. While US unemployment remains high near 9%, corporate profitability is high, vehicle and durable goods orders are strong and growing, signaling continued strength in equities there, while strong global commodity prices continue to help the Canadian stock market. Many analysts are raising their economic growth and market growth forecasts. The chart shows 2010 actual and 2011 forecasted growth in corporate earnings per share in various regions – all in the double-digits. Investors should expect continued volatility as market sentiment at times becomes over-optimistic and then settles back to more reasonable levels. 

Portfolio Allocation

If you are already working with us, then we will already have agreed on a suitable allocation to equities and a strategy to keep your asset allocation in balance. If you are not yet working with us, please give us a call to arrange for your complimentary Initial Assessment and Evaluation.

My Account | Testimonials | Contact Us | Legal