This Commodity Keeps your Bones Strong and Investment Returns Strong

30-Dec-2011 | kate | Commodities Economy USA

Milk was the top preforming commodity in 2011, beating out crude oil, gold and cattle.

Milk futures jumped 41% in 2011 due to  an increase in rising populations, increased exports and rising world incomes. Milk futures reached their highs in August 2011, but still ended the year as the number one commodity performer.

Following along with milk is dry whey, a milk by product used in sports drinks, snacks and baby formula. Whey priced increased 75.13%.

 

Lots of analyst believes that milk exports will rise in Canada, Mexico, Japan, China, Philippines and Indonesia, the six biggest buyers in the world.

 

Even though milk future rose during the year, it didn’t necessarily mean bigger pay days for the farmers, as feed prices also increased throughout the year.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Argentine Government Hate Foreign Investment

26-Oct-2011 | Reggie | Canadian Investing Commodities Economy Investment Ideas

The Argentine Government is infamous for protectionist policies and poor fiscal management.  Keeping their track record, they today announced that all export revenue stemming from oil, gas, and mining companies must be repatriated, meaning any funds derived from the sale of these natural resources must flow through the country.  This was an increase from the 2002 law which stated that 30% of all revenue has to flow through.

 

The law was passed by Argentine President Cristina Fernandez de Kirchner, who just won her second term on October 23rd.  It was largely expected that rules pertaining to foreign companies would be maintained and many stocks rose on the news of her re-election.  The move is designed to help maintain capital in the country and keep the Peso strong, but the detriment done to foreign investment seems to be a much bigger blow.  The United Nations estimate that foreign investment in Argentina has already decreased by 30% since the beginning of the year.  Companies with significant operations in Argentina all fell on the news.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Euro Debt Crisis Under Control?

12-Oct-2011 | Reggie | Banks Economy Europe

It would seem as though investors are starting to believe that this latest European debt crisis is under control.  Markets throughout the world took some pretty serious hits over the past few weeks as investors headed to the exits based on fears that European banks could begin to collapse.  With the monetary union rallying behind the common cause of keeping the economy afloat, investor confidence seems to be on the rise.

 

The latest refinement of the bailout fund, referred to as the EFSF European Financial Stability Facility, has just been approved by Slovakia, one of the smaller nations of the Eurozone.  The EFSF will have a total value of €750 billion, part of which will be raised by issuing its own bonds that will have an AAA rating. 

 

The other big news is that the Belgian government agreed to nationalize the domestic operations of Dexia bank.  Dexia was in dire straights thanks to the bad European debts it was holding and weak capitalization that resulted.  With not having to worry about a run on the bank, investors and asset holders could take a breath.

 

Also, the Chinese sovereign wealth fund bought shares of the four big banks.  The move is meant to shore up capital of the banks and increase investor confidence.  The Chinese markets were closed when the announcement was made, but shares on the Hong Kong market rallied hard immediately following the announcement. 

 

With this latest round of good news, the TSX has managed to rebound over 1,000 points since the lows hit last week.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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When Canada Was AA+

10-Aug-2011 | kate | Asia Australia Canadian Investing Economics Economy Europe Government International Investing Market Outlook USA

I came  across an article this morning that immediately sparked my interest. The headline was Credit Downgrade Nothing New for Canada. Interested by the title, I read on to learn that Canada’s credit rating was down grade from AAA to AA in April of 1993.

In April 1993, the Canadian government was running a massive budget deficit and was downgraded by CBRS (a small rating agency) because of the “concerns of economic weakness, rising inflationary pressures, high wage settlements for government unions, high and rising unemployment and local currency caught in what it looked like, at the time, a death spiral.”

At the time of the down grade, the debt to GDP ratio was 72% (fact checked by CNN). Our government recognized the concerns of CBRS and all concerned Canadians by positioning the country to face global headwinds and austerity measures were put into place so that by 2002, the CBRS return the AAA credit rating to the Canadian Government. It wasn’t an easy battle, but with political cooperation ( currently lacking in the United States), tax hikes and spending cuts, the Canadian stock market was capable of moving forward.  Today, our debt to GDP ratio is 34% and we are considered to be a healthy economy.

Today the US has a debt to GDP ratio of 74% that is expected to move to 84% by 2021, if they continue with the status quo.  However, if they take cost cutting actions and work together to solve political problems, perhaps one day, we will be writing an article about how we all forgot that this great economy once had its own struggles.

 

Other Countries who have their Credit Rating Down Graded in 2011

 

2011:

Ireland

Portugal

Greece

Japan

Bihrain

Tusisia

Libya

 

Nations that have lost AAA and Regained/Retained AAA

Time to regain: 9-18 years

Canada

Australia

Denmark

Finland

Sweden

 

Countries with AAA

Australia

Austria

Canada

Denmark

Finaland

France

Germany

Netherlands

Norawy

Singapore

Sweden

Switzerland

UK

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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Markets Down for Another Day

08-Aug-2011 | kate | Asia Canadian Investing Economy Europe Government International Investing US Markets USA

Markets were rough today, after the market took into account the downgrading of the United States debt by Standard and Poor’s from AAA to AA+.

 

The S&P said that the US downgrade was based on the grounds that the US government’s inability to reach a consensus and that the Congress and President Obama, have not done enough to compress the rising deficit and debt obligations.

 

Additionally, Morgan Stanley issued a statement today that warned of the “unprecedented nature of negative credit rating action with respects to US government obligation, the ultimate impact on global markets and our business, financial conditions and liquidity are unpredictable and may not be immediately apparent.”

 

The news sent stocks for another slip today, US and Canadian markets opened lower and continued to follow the downward trend for the remaining of the trading day. Around the world, stocks fell with London off 178 points, Tokyo down 202 points, Hong Kong down 456 points and even Korea who closed down 3.8% after the trading day.  Rounding out the world’s largest exchanges, Australia was down 2.7%, Shanghai down 3.8%, Singapore (3.7%) and Germany and France were both down more than 2%.

 

So all and all, it was a rough day for stock traders as the US and Europe work on creating financial stability and returning growth to their economies.

This blog has been prepared by the Retire First Team. The blog expresses the opinions of the writers and not necessarily those of Retire First Ltd. Statistic and factual data are from sources Retire First believes to be reliable but their accuracy can not be guaranteed. This blog is furnished on the basis and understanding that Retire First is under no liability whatsoever in respect thereof. It is for informational purposes only and is not be construed as an offer or solicitation for the sale or purchase of securities. Retire First Ltd. And its officers, directors, employees and their family may from time to time invest in the securities discussed in this blog. This blog is intended for individuals where Retire First Ltd is registered as a dealer in securities.

Retire First is a member of the Canadian Investors Protection Fund.

Commission, trailing commissions, management fees and expense all may be associated with mutual funds. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A recommendation of any of the mentioned investments would only be made after a personal review of individual portfolio. Third Party research has been used in formulating the writer's opinions.

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