Investing in the u s
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INVESTING IN THE U.S. Name Title Company DATE. 2. 3. 1. AGENDA. RECENT EVENTS. REASONS FOR OPTIMISM. LESSONS FROM HISTORY. RECENT EVENTS. A ROLLERCOASTER DECADE IN THE U.S. Technology Bubble. U.S. Budgetary Crisis. Financial Crisis. Source: Yahoo Finance.

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Investing in the u s

INVESTING IN THE U.S.

Name

TitleCompany

DATE


Agenda

2.

3.

1.

AGENDA

RECENT EVENTS

REASONS FOR OPTIMISM

LESSONS FROM HISTORY


Recent events

RECENT EVENTS


A rollercoaster decade in the u s

A ROLLERCOASTER DECADE IN THE U.S.

Technology Bubble

U.S. Budgetary Crisis

Financial Crisis

Source: Yahoo Finance.

S&P 500, January 1995 to October 3rd, 2011. The chart above is for illustrative purposes only.


Causes of recent global volatility

CAUSES OF RECENT GLOBAL VOLATILITY


Reason for optimism in the u s

REASON FOR OPTIMISMIN THE U.S.


Gdp continues to grow

GDP CONTINUES TO GROW

U.S. GROSS DOMESTIC PRODUCT

Source: U.S. Department of Commerce, Bureau of Economic Analysis.


Revenue

REVENUE

U.S. COMPANIES EARN A SIGNIFICANT AMOUNT OF REVENUE OUTSIDE THE U.S.

OutsideU.S.

In theU.S.

Source: RBC Economics, % of revenue of S&P 500 Companies.


U s corporate profits are growing

U.S. CORPORATE PROFITS ARE GROWING

Source: U.S. Department of Commerce, Bureau of Economic Analysis.


U s stocks are cheap

U.S. STOCKS ARE CHEAP

PRICE TO EARNINGS LEVELS OF THE S&P 500

Source: Morningstar, November 30th 1999 to October 31st 2011.


Saving has improved and spending has increased

SAVING HAS IMPROVED AND SPENDING HAS INCREASED

U.S. SAVINGS RATE

U.S. SPENDING RATE

Savings Rate as a a percentage of disposable income. Spending Rate in billions.

Source: U.S. Department of Commerce, Bureau of Economic Analysis.


Broader sector diversification

  • 4 SECTORS:

  • 9% of Canadian market

  • 43% of U.S. market

  • Positive performance YTD

  • 3 SECTORS:

  • 78% of Canadian market

  • Negative performance YTD

BROADER SECTOR DIVERSIFICATION

CANADIAN CONCENTRATION IN 3 SECTORS HAS HURT PERFORMANCE.

U.S. OFFERS BROADER DIVERSIFICATION TO SECTORS NOT REPRESENTED IN CANADA

YTD: +1%

YTD: -6.9%

Sector Weight

Sector Performance

Source: Morningstar, as of November 23rd, 2011.


Currency impact

CURRENCY IMPACT

CANADIAN DOLLAR HAS STABILIZED

Source: Bank of Canada as of January 4th, 2010 to December 1st, 2011.


Lessons from history

LESSONS FROM HISTORY


There has always been a reason not to invest

THERE HAS ALWAYS BEEN A REASON NOT TO INVEST

1974

1979

1979

1980

1984

1987

1992

Source: Yahoo Finance.

S&P 500, January 1974 to December 31, 1997. The chart above is for illustrative purposes only.


News is just that news

NEWS IS JUST THAT…. NEWS

Source: Yahoo Finance.

S&P 500, January 19995 to October 3, 2011. The chart above is for illustrative purposes only.


Focus on the big picture

FOCUS ON THE BIG PICTURE

“BLACK MONDAY” THE CRASH OF 1987

  • First 100-point dive in Dow Jones history on Friday, October 16, 1987

  • The 2nd was the following Monday

Sources: Reuters, Government of Canada.


Focus on the big picture1

FOCUS ON THE BIG PICTURE

OCTOBER 27,1997

  • Dow Jones down 554.26 points, or 7%

  • 12th biggest percentage loss and 3rd biggest points loss on record

  • NASDAQ Composite fell 7%

  • S&P 500 fell 64.63, or 6%, to 877.01

Sources: Reuters.


Focus on the big picture2

FOCUS ON THE BIG PICTURE

THE AFTERMATH OF 9/11 2001

  • Closed for 6 days:longest stock market closure since the Great Depression

  • Down 684 points (7%):Dow Jones biggest-ever one-day point decline

  • By weeks end:Down 1369.7 points (14.3%), its largest one-week point drop in history

Sources: Reuters.


Focus on the big picture3

FOCUS ON THE BIG PICTURE

U.S. MARKET TENDS TO RECOVER OVER TIME

2008 Financial Crisis

European Debt Worries

Russian Crisis

9/11

Mexican Peso Crisis

Savings & Loan Crisis

$106,197

1997 market crisis

Latin America

Crash of 1987

$10,000

Source Yahoo Finance, S&P 500 January 1970 to October 3rd, 2011.

For illustrative purposes only.


Focus on the long term

FOCUS ON THE LONG TERM

STRONG BULL MARKETS TEND TO FOLLOW SIDEWAYS MARKETS

13 years sideways

981%

14 years sideways

504%

Source: Yahoo Finance, S&P 500 January 1950 to October 3rd, 2011.

For illustrative purposes only.


Focus on the long term1

FOCUS ON THE LONG TERM

DOES HISTORY REPEAT ITSELF?

  • Rise and fall of high growth stocks

  • The U.S. was committed to a war in Asia

  • Oil prices have skyrocketed

  • U.S. unemployment at 9%+

1982 – 1997

1998 – 2011

1968 – 1982

Source: Yahoo Finance, S&P 500. Light blue chart from January 1, 2008 to October 3rd, 2011. Dark Blue chart January 1st, 1968 to December 31st, 1997.

For illustrative purposes only.


You don t need to time the market with dollar cost averaging products

YOU DON’T NEED TO TIME THE MARKET WITH DOLLAR COST AVERAGING PRODUCTS

THEY CAN SMOOTH OUT MARKET VOLATILITY

$50,000 HYPOTHETICAL INVESTMENT IN THE S&P 500

Dollar Cost

Averaging Product

Lump Sum

Source: Yahoo Finance.

The above chart illustrates a hypothetical lump sum $50,000 investment in the S&P 500. The Dollar Cost averaging product transfers the $50,000 investment into the S&P 500 over a 52 week period, with the remainder waiting to be invested in cash. For illustrative purposes only.


Important information

IMPORTANT INFORMATION

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in units value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated

Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any funds managed by Goodman & Company, Investment Counsel Ltd. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell.

This document is not to be distributed or reproduced without the consent of Goodman & Company, Investment Counsel. Dynamic Funds is a division of Goodman & Company, Investment Counsel Ltd.


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