•Mutual Fund News: It’s safe to say that a huge majority of people with Mutual Funds in their portfolios took a bath in 2008. Markets nationally and globally dropped to unprecedented levels due to financial and economic woes not seen in decades. A majority of funds had negative returns in the 40% range, and those invested in financial services and natural resources took an even harder hit. These results would have been worse if the market hadn’t rallied somewhat in the last month or so. This small bounce may help investors to regain some faith in the marketplace, though this may take some time. Hopefully we have endured the worst and things will improve in the first months of 2009 and remain at more stable levels throughout the year and beyond.
•US Marketplace: The US Treasury Department will provide $5 Billion US to GMAC Financial Services LLC, the ailing financing arm of General Motors Corp. This move is expected to ward off a bankruptcy protection filing at the company, but it also severely limits GM’s control over it.
In exchange for the rescue package, the government will receive preferred shares that pay an 8% dividend plus warrants to purchase additional shares in return for the money. The government aid is expected to provide a much needed boost to domestic auto sales by freeing up more consumer credit.
•Canadian Marketplace: Bell Canada and Rogers Communications, two of Canada’s largest telecom companies may be facing more uncertainty in the upcoming year as potential competition may be about to enter into their marketplace.
•INTERNATIONAL NEWS: Gold and oil, seasonally one is weak when the other is strong. Gold usually has it’s strongest period from September to December each year and maintains this trend from January thru March. Following this, a strong rally may occur in March. Oil, on the other hand, is extremely weak from October thru December. Oil is strongest seasonally from July thru September with the strongest individual months being January and August.
…..Doug T
