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INVESTING IN THE U.S.

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.

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  1. INVESTING IN THE U.S. Name TitleCompany DATE

  2. 2. 3. 1. AGENDA RECENT EVENTS REASONS FOR OPTIMISM LESSONS FROM HISTORY

  3. RECENT EVENTS

  4. 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.

  5. CAUSES OF RECENT GLOBAL VOLATILITY

  6. REASON FOR OPTIMISMIN THE U.S.

  7. GDP CONTINUES TO GROW U.S. GROSS DOMESTIC PRODUCT Source: U.S. Department of Commerce, Bureau of Economic Analysis.

  8. 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.

  9. U.S. CORPORATE PROFITS ARE GROWING Source: U.S. Department of Commerce, Bureau of Economic Analysis.

  10. U.S. STOCKS ARE CHEAP PRICE TO EARNINGS LEVELS OF THE S&P 500 Source: Morningstar, November 30th 1999 to October 31st 2011.

  11. 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.

  12. 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.

  13. CURRENCY IMPACT CANADIAN DOLLAR HAS STABILIZED Source: Bank of Canada as of January 4th, 2010 to December 1st, 2011.

  14. LESSONS FROM HISTORY

  15. 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.

  16. 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.

  17. 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.

  18. 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.

  19. 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.

  20. 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.

  21. 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.

  22. 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.

  23. 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.

  24. 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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