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Patrick Bennett
Marie-Hélène Roussin

Tel: 514-282-5852

1501, avenue McGill College
32e étage
Montréal, QC
H3A 3M8


This section contains the most recent issue of our Quarterly Review's executive summary. It provides an update on the markets and changes in our team.

Executive Summary

Fourth Quarter 2011

January 10th ,2011

Dear Clients,

As we review 2010, one is struck by the divergence between the year’s gloomy headlines and the generally positive results shown by the financial markets. Some of the challenges facing the global economy during the year included the effects of the major oil spill in the Gulf of Mexico and ongoing concerns that some European governments will default on their debts. These joined lingering problems in the U.S. economy, including high unemployment, slow growth and an expanding government deficit. Nonetheless, many of the world’s major stock and fixed-income markets made gains during the year.

In Canada, the S&P/TSX Composite Index benefited from strength in commodities such as gold, oil, copper and potash to become one of the world’s best-performing markets. U.S. equities also moved up, with sectors such as industrials and consumer discretionary products among the leaders. It’s worthwhile to note that those sectors are cyclical – they perform best during a period of economic growth. Overseas, equities in emerging markets and Asia also rose, while European stock markets were mixed. Equity indexes in those countries with the biggest debt problems were down for the year.

Why have so many markets rallied despite what seems to be an inhospitable environment? Stock markets are a leading indicator – they tend to anticipate future developments rather than reflect what is happening now. Judging by the results of the past year, equity market investors are expecting continued recovery and growth.

Indeed, there are several factors supporting a positive outlook. The economy has continued to grow in all major regions of the world in 2010, including Europe. Although government and consumer debt levels are a concern, many corporations are in good shape, with strong balance sheets. This has left them well positioned to take advantage of some of the key trends in the global marketplace – such as the robust growth in emerging markets. Bond markets are also pointing to a strengthening economy, as indicated by the increase in U.S. bond yields in the fourth quarter.

Of course, events may conspire to change this outlook. That is why I suggest investing according to a sound financial plan, having a diversified portfolio tailored to your individual circumstances, and maintaining a long-term view for your equity investments.

I have enjoyed the opportunity of working with you over the past year, and look forward to our continued relationship in 2011. I wish you and your family all the best for the coming year.

Should you have any questions about your portfolio or the outlook for capital markets, please do not hesitate to give me a call.


Patrick Bennett