S&P 500 – Benefits Canada.com

Does time of day impact financial market returns?

mschmit — Tue, 27 Oct 2020 08:25:48 +0000

While many drivers can influence stock market returns, it turns out the time of the day may play an important role. In particular, the four hours around the time Asian markets close and European markets open account for the entire market returns when looking at E-mini S&P 500 futures, according to the paper by Dmitriy […]

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Where did institutional equity investors turn in coronavirus crash?

mschmit — Mon, 17 Aug 2020 04:40:21 +0000

During the coronavirus market crash, U.S. stocks with higher institutional ownership experienced worse performance, especially those held by active, short-term and domestic institutions, according to a recent paper. Institutional ownership of U.S. stocks has risen to massive levels, comprising 75 per cent of stock ownership overall, noted the paper by researchers at the University of […]

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How will China play into Canadian pension portfolios as exposure inches higher?

mschmit — Fri, 14 Aug 2020 04:55:07 +0000

The rallying cry that China is simply too significant a part of the world’s economy to leave out of a well-diversified portfolio is about to be last year’s cliché. For the moment, the country remains the second largest economic engine in the world, but its stunning growth in just the past few years has investors […]

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Looking beyond the U.S. for quality fundamentals at the right price

mschmit — Mon, 10 Aug 2020 03:52:04 +0000

US equities have dominated their global peers over the past decade. As of 30 June, the S&P 500 had returned 14.5 per cent per annum since hitting bottom during the global financial crisis in March 2009 compared to only 7.6 per cent for the MSCI All-Country World ex-USA Index. The outperformance of US shares isn’t […]

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Higher tax rates expected in Biden administration

mschmit — Thu, 23 Jul 2020 04:00:03 +0000

Former vice-president Joseph Biden will inherit an economy beleaguered by the battle against the coronavirus if he wins the election in November. The recession will influence his legislative priorities in both the short and long term; however, Biden has indicated that he would raise an array of corporate and personal taxes to finance domestic programs, […]

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A coronavirus game plan for defined benefit pension plans

mschmit — Thu, 02 Apr 2020 09:23:49 +0000

The novel coronavirus has introduced unprecedented volatility to financial markets and is taking its toll on pension plans. We’ve seen sharp corrections in most equity markets. At its lowest point in the correction to date, the S&P 500 lost 34 per cent of its value, from its peak in February. The TSX, which has also […]

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Fed takes emergency steps to slash rates and ease bank rules

mschmit — Mon, 16 Mar 2020 04:12:46 +0000

The Federal Reserve took massive emergency action Sunday to try to help the economy withstand the coronavirus by slashing its benchmark interest rate to near zero and saying it would buy $700 billion in Treasury and mortgage bonds. The Fed’s surprise announcement signalled its rising concern that the viral outbreak will depress economic growth in […]

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Virus spread prompts Fed to slash rates in surprise move

mschmit — Tue, 03 Mar 2020 07:40:07 +0000

In a surprise move, the Federal Reserve cut its benchmark interest rate by a sizeable half-percentage point Tuesday in an effort to support the economy in the face of the spreading coronavirus. Chairman Jerome Powell said at a news conference that the virus “will surely weigh on economic activity both here and abroad for some […]

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401(k)s hit records as workers sock away more, stocks jump

mschmit — Fri, 14 Feb 2020 03:58:59 +0000

The average 401(k) balance rose 17 per cent last year to $112,300 from the end of 2018, according to a review of 17.3 million accounts by Fidelity Investments. The average individual retirement account, or IRA, balance rose the same percentage to $115,400. Those figures are averages, not medians, and the typical 401(k) might be closer […]

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After ebullient 2019, Wall Street warns of slower road ahead

mschmit — Thu, 02 Jan 2020 05:08:02 +0000

After a year of nirvana, investors may need to get ready for something a little more normal. Markets are coming off a fabulous 2019, where stocks and bonds around the world climbed in concert. But for the next year, and decade, in fact, Wall Street is telling investors to set their expectations considerably lower. It’s […]

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