Market Commentary

by Clement Gignac, Chief Economist
5/12/2008
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The Canadian market rally: A look under the hood

Stock markets typically do worst in recessions. Since 1960, the average decline from onset of recession to market trough has been 21%. Thus the 18.5% pullback of the S&P 500 in the recent U.S. correction – from October 9 peak to March 10 – was not far from its average performance in a recession.

Back in January, at a time where many market pundits were hitting the panic button, we decided to remove our underweight recommendation on equities because downside risk was getting more limited. At the time, we noted that markets tend to recover ahead of the end of the recessionary period. Indeed, once the storm settled the U.S. equity market experienced a significant rebound and is now up 10% from the March low.

The Canadian market rebound has been even better, 15%-plus since its March low and almost 20% since its January trough. Perhaps even more impressive, the benchmark S&P/TSX is close to breaking above its all-time high.

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The Critical Illness Solution

by D. Geoff Cook, Benefits and Planning Director

Facts

“Based on current incidence rates, during their lifetimes 38% of Canadian women and 41% of Canadian men will develop cancer.” ¹
“An estimated 139,900 new cases of cancer and 67,400 deaths from cancer will occur in Canada in 2003.” ¹
On average, every year up to 70,000 Canadians have a heart attack and at least 50,000 have a stroke. ²

Serious illnesses can be emotionally draining, physically challenging, and financially exhausting. One solution to these problems is Critical Illness insurance.