By Fund Library News Wire | Friday, August 26, 2016
By Mike Keerma
North American stock indexes flagged on the week, as comments from U.S. Federal Reserve Board officials at an economic summit in Jackson Hole, Wyoming
appeared to raise the probability of at least one hike in the Fed’s benchmark interest rate before the year is out. Against a backdrop of typically lighter
summertime volume and very low implied volatility, the S&P 500 Composite Index closed Friday with a loss of
-0.7% on the week. Toronto’s benchmark S&P/TSX Composite Index likewise edged down -0.3% as
both crude oil and gold closed the week lower.
– I’m a high-bracket small-business owner looking for ways to enhance my retirement savings beyond a Registered Retirement Savings Plan (RRSP)? Do you have
any suggestions? – Frank C., Newmarket, Ontario
Looking to found a family business dynasty? Here’s a sobering statistic: Only about 10% of family-owned businesses make it past the third generation. This
has a lot to do with the lack of proper planning while the founding parents are still alive. One way to give your business at least a fighting chance to go
beyond the third generation is to implement something that estate lawyers call an “estate freeze.”
While it might be a bit too early for many investors to step into direct European equity exposure, those with a higher appetite for risk may want to
consider it. One interesting way to get some exposure to the region without taking on the full risk of the market would be to use the First Asset MSCI Europe Low Risk Weighted ETF.
In several major economies, monetary policy is reaching its limits. It seems that every day we see headlines asking, “Have central banks run out of
ammunition?” The question dominates the financial markets’ discourse. Its ubiquity reflects the central banks’ unprecedented role in both stabilizing
economic growth and supporting asset prices since the end of the global financial crisis. But the question also reflects disappointment. Global growth
remains frustratingly fragile. Inflation has stubbornly fallen short of central bank targets. This disappointment has led to a negative feedback loop
between central banks and the markets.