MoneySense.ca has got a panel of Canada’s top financial advisers on board to take on any RRSP questions you may have as the deadline to contribute to your 2009 RRSP approaches.

 

To take part, all you have to do is leave a comment on their RRSP site (in the field at the bottom of the article). Answers will be fielded and posted from February 16 to February 19.

 

Great way to get some free RRSP advice, so be sure to check it out!

 

Disclosure: This is not an advertisement – just a tip!

 

 

In the latest issue of MoneySense magazine, I came across two interesting statistics that show just how volatile the markets truly are…

 

• $6,647 = what $1,000 invested in the S&P 500 on Jan. 1, 1990, was worth at the end of 1999, including dividends
•  $662 = what $1,000 invested in the S&P 500 on Jan. 1, 2000, was worth at the end of 2009, including dividends

 

Hopefully the next decade resembles the 1990s!

 

 

The U.S. unemployment rate dropped unexpectedly in January to 9.7%, while employers shed 20,000 jobs, according to a report that offered hope the economy will add jobs soon…

 

 

Here in Canada, Statscan reported that the economy add 43,000 jobs last month, dropping the national unemployment rate by 0.1% to 8.3%. Unfortunately, all the jobs created were part-time – full-time employment showed little change.

 

 

In spite of the recent down trend in U.S. stocks, one investment firm says the U.S. stock market is poised to climb higher.

 

Bespoke Investment Group believes that the U.S. stock market is ready to roar despite a disappointing start to the year.

 

Bespoke’s first piece of evidence is the “beat rate” of NYSE-listed companies that are surpassing the revenues expected by analysts. This rate is 72% this quarter, the highest level seen since the fourth quarter of 2004.

 

Bespoke’s second piece of evidence is its upside volume indicator, which takes the 10-day volume in NYSE-listed stocks trading higher and divides this number by the total volume of trades. “Compared to the average reading of this indicator since 2002, the current level is two standard deviations below normal,” according to Bespoke. This, in theory, indicates that the market is extremely oversold and ready to rebound.

 

Reference Source: Financial Post

 

Stocks tumbled for the third straight time yesterday on uncertainty about U.S. President Barack Obama’s plans to restrict big banks, lackluster earnings, and China’s economic policies…

 

 

 

Back in November, Microsoft and News Corp. were in talks to essentially bring down Google’s share of the search engine market. Now it appears Microsoft is in talks with Apple to bring that share down even further.

 

According to a report by BusinessWeek, Apple is apparently in discussions with Microsoft to make the software giant’s Bing search engine the default option on the extremely popular iPhone. The move would push Google’s search engine out of the coveted spot.

 

The report suggests that Microsoft may be willing to share a higher portion of its mobile advertising revenue than Google is, or dish out a larger flat annual fee to make the deal happen.

 

The report also said that Microsoft may be lobbying to make Bing an alternative option on Apple’s Safari browser for Mac users. They currently have a choice between Google or Yahoo search.

 

According to the UN World Tourism Organization, global tourism is set to rebound in 2010 after the economic crisis and swine flu pandemic produced “one of the most difficult years” for the sector. “2010 will be transformational year” for world tourism, UNWTO Secretary General Taleb Rifai told a news conference called to present the organization’s annual World Tourism Barometer yesterday. The report said international tourist arrivals fell by an estimated 4% in 2009, to 880 million, but should recover to grow by 3%-4% in 2010. It said growth in the sector returned in the last quarter of 2009 contributing to better than expected full-year results, led by the Asia-Pacific and Middle East regions.

 

Reference Source: Agence France-Presse

 

From the FP Trading Desk…

 

The risk premium between bonds and equities continues to support another upleg in the stock market, says a recent report from Scotia Capital Markets.

 

“As long as credit spreads continue to narrow and the U.S. employment outlook improves (declining jobless claims), equity markets should resume their upward trend and we will stick to our positive cyclical stance,” said Vincent Delisle, Scotia Capital Markets strategist, in a note to clients last week. 

 

In late 2008, corporate credit spreads were more than 620 basis points as markets reeled from the financial crisis. Since then, they have fallen roughly to about 250 basis points.  

 

Mr. Delisle said it is no surprise that equities rallied in 2009 at the same time credit spreads fell and thinks more upside for stocks remains until spreads reach their historical 215 basis point level. 

 

“When risk premiums get back to normal levels, and the S&P 500 is hovering above 1,200, it will then be time to take some risk off the table,” he said.

 

Until then, he recommends investors overweight mid-to-late cyclicals, including technology and energy stocks.

 

 

Yet another list of stocks set to outperform in 2010 has emerged – this time provided by Wellington West Capital Markets. They suggest the following…

1. Anatolia Minerals Development Ltd. (TSX: ANO, $3.87)
2. Bellatrix Exploration Ltd. (TSX: BXE, $3.82)
3. Copper Mountain Mining Corp. (TSX: CUM, $2.31)
4. Essential Energy Services Trust (TSX: ESN.UN, $1.27)
5. Hemisphere GPS Inc. (TSX: HEM, $1.13)
6. Kirkland Lake Gold Inc. (TSX: KGI, $8.20)
7. Second Wave Petroleum Inc. (TSX.V: SCS, $2.22)
8. Sterling Resources Ltd. (TSX.V: SLG, $1.98)
9. Taseko Mines Ltd. (TSX: TKO, $5.17)
10. Wi-LAN Inc. (TSX: WIN, $3.08)

In 2009, Wellington West’s top picks provided an average total return of 98.5%. Not bad, but like I’ve said countless times before, conduct your own analysis before investing!

(Disclosure: Sean does not own any of the aforementioned securities)