Market update and 10% bond timeline…

Hello to everybody and hope you are enjoying this 4 day work week!

Here is my brief overview of what is going in the markets over the last week as well as the remaining time left on the Jaymor Capital 10% Bond. As everybody is probably aware, markets are still not able to get any type of direction and are still moving sideways. Below are just a few of the reasons why they are so volatile.

Price of oil: At the time of last week’s update, Oil was trading at 95.63 per barrel. Since then, we have had various forecasts released increasing the cost per barrel by 2% overnight on Tuesday. Goldman Sachs has predicted a 3 month price of $115, a 6 month price of $120 and a 12 month price of $130. Oil closed at $99.59 at end of day Tuesday. The best gas price in Peterborough today is 123.90 while the average price in Ontario today is 128.81. A year ago today the average price in Ontario was 95.608.

Price of gold and silver Last week’s update saw Gold trading at $1479 per ounce and silver trading at 33.51 per ounce. Gold and silver prices have shined over the last week as European debt worries have frightened many investors out of the markets. As of yesterday’s close, Gold was trading at $1523.30 per ounce while silver was trading at $36.13 per ounce.

The Toronto Stock Exchange (TSX): Canada’s leading stock indicator was trading at 13398 as of last week’s update. There is still a lot of concern over financial markets with most of it stemming from the European debt problem. In particular there are worries that Greece will default on its debt and that Ireland, Spain, Portugal and Belgium are in trouble. This has of course kept the world markets very choppy with many large daily swings. Currently the TSX is trading at 13713 and having a very nice positive day mostly due to commodity companies on the exchange.

Top Posted GIC’S in Canada: On the GIC front, the top posted rates in our nation according to gicdirect.com are as follows.

1 year – 2.10%

3 year – 3.00%

5 year – 3.56%

Canadian Investment Funds: The following are rates of return for the same time period for a Canadian Equity investment fund.

1 year – 14.02%

3 year – 0.88%

5 year – 3.23%

The last 7 days have seen the average equity fund return 0.69%.

As you can see, there is still a lot of uncertainty in the markets. GIC’S offer security and guarantee’s but very little in the way of return. Stocks and Investment funds offer great upside potential but the possibility to only average 3.23% over 5 years with the possibility of losing 20% to 40% in any given year. Everybody’s timeline and income needs are different. If you don’t have the time or the risk tolerance for the markets but need more than 3.00% to live off of, I may have another option for you.

If you are looking for the security of a fixed rate investment with the growth potential of the stock markets (without the risk) please inquire to get more information on the Jaymor Capital 10% Bond. Time is running out as June is less than a week away. This bond offering will be closing in June.

I hope everybody has a great short work week as we are half way to the weekend!

 

Cory