2013 Review

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The markets were mixed last week, after two particularly strong weeks Dec 16-27. The Santa Claus Rally kicked in full-force. We hope everyone benefitted from this extra Xmas bonus.

As for last week, all of the major indexes retreated a bit, but small caps started rising right on cue for this time of year. The S&P/TSX Venture Index rose 2.8%, and the S&P/TSX SmallCap index was up 0.6%. All of the other indexes turned in negative results week-over-week.

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Topic of the Week… 2013 Review
While we normally prefer to be forward-looking, it’s that time of year to reflect back on 2013. It was a particularly good year for equities investors, especially if you chose US stocks over Canadian equities… something we’ve been advocating all year. So this week we start walking you through the details.

State Street Investor Confidence… The latest data for the month of December are presented. While there are improvements in the outlook for equities overall, European stocks appear to be the most attractive to institutional investors.

Seasonality… The Santa Clause Rally/January Effect has become more complicated than it once was, with plenty of room for alternative interpretations. We unravel the confusion for you, and highlight the best opportunities for January from a probabilistic perspective.

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