GET SAFE and STAY SAFE!
A memo from Wernham Wealth Management
For immediate review
May 21, 2010 3:30pm
There has been significant volatility among equities over the past week, as global markets gave up some of the stellar gains made in 2009.
In the US and Europe, the S&P500 and MSCI Europe have shed 5.6% and 3.1% respectively so far this week, and are down 3.2% and 6.3% so far this year.
In Canada, the S&P/TSX Composite index has fallen 5.0% this week, and as a result dipped into negative territory (-1.9%) on a year-to-date basis.
The drivers of this short term weakness can be found outside of our borders.
The primary pressure on the market stemmed from investor worries that the recently announced European bailout package will not be enough and/or German politicians will vote down their component.
Today, the German lower house of parliament approved the country’s share of a $1 trillion lending package to ease Europe’s debt woes. The ongoing issue is one of potential sovereign debt defaults, with the ripple effects felt among already struggling financial institutions and global economies.
1. Additional headwinds are coming from concerns over a Chinese government-orchestrated slowdown in economic growth, and the resulting negative impact on global demand for commodities.
2. Lingering concerns over the pace and sustainability of US economic growth have also been weighing on markets recently – rekindled yesterday by an unexpectedly weak jobless report.
These pressures have caused some dramatic downside volatility among equities around the world, while pushing the US dollar higher as global investors seek out a safe haven.
At Wernham Wealth Management, we have been advising to act on our theme “GET SAFE and STAY SAFE” for the past six months.
Congratulations to all who have created predictable, sustainable portfolio programs with us, with the guarantees that you received to weather this market storm.
We appreciate your confidence and know that you can rest assured of a brighter future through the implementation of our Retirement Blueprint.
Those of you yet to review the safety of these recommendations with me should arrange for a convenient time to do so, as soon as possible.
Our Offices will be open tomorrow, Saturday May 22. We will also have more to share with you on BOOMER WEALTH RADIO, at 1:30pm on am980, or by podcast at your leisure at www.am980.ca.
Believe us! It is time to GET SAFE and STAY SAFE.
Contact me at 519.670.3177 or by email at email@example.com
This document reflects the views of Wernham Wealth Management as of the date stated. The information in this document is for general information purposes only and is not to be construed as providing investment, legal, tax, financial or professional advice. Wernham Wealth Management assumes no responsibility for any reliance made on or misuse or omissions of the information contained in this document. Please seek professional advice before making any decision.