October 2014

An Exclusive Newsletter on behalf of Gary

Renaud, Janet Geiger, Peter Halchuk and the rest of our
team at Life Span.
After a prolonged period of low volatility and steady
growth, financial markets have become increasingly
unsettled. We are seeing outright oversold conditions in
the markets which may signal that the correction is
ending. We have taken action over the last quarter by
raising cash and getting defensive.
o
Life Span Financial Strategies
Main reception: 613-228-7777
Toll-free: 1-866-752-6220
Online: www.lifespan.ca

o
Gary M. Renaud, CFP, CIM, FCSI, TEP
Executive Director, Private Client Group &
Portfolio Manager
HollisWealth
o
Janet Geiger, MBA, CFP, CIM, FCSI
Portfolio Manager & Senior Investment Advisor
HollisWealth
o
Peter Halchuk B.Sc., CFP, CIM, FMA
Portfolio Manager & Investment Advisor
HollisWealth
o

1770 Woodward Drive

Suite 210
Ottawa, Ontario K2C 0P8
www.lifespan.ca
P: 613-228-7777
F: 613-274-0109

We have increased and maintained our overweight

cash position since August, and hold approximately
11% for a balanced growth portfolio.
In addition to increasing cash we have made several
changes to position portfolios more defensively
which will help to weather the market volatility.
May 20, 2014 we exited our U.S. momentum
position and bought a U.S. value strategy for all
clients. Value stocks tend to outperform in market
declines and are less volatile.
August 8, 2014 we sold Vermillion Energy and
September 25th sold CCL Industries for all clients.
Proceeds were used to increase our cash position
and we are still waiting to deploy.
September 4, 2014 for Income portfolios we sold
out of two positions Ag Growth International and
Emera. Proceeds were used to buy BMO Covered
Call Utilities a defensive positioning to protect
portfolios while yielding 5.6%.
For Income portfolio clients, August 13, 2014 we
shifted from First Asset Canadian Value ETF to BMO
Low Volatility ETF, positioning in a more defensive
allocation with a focus on low volatility stocks.
September 19, 2014 we exited gold and precious
metals allocation, this was one of the top
performing sectors on the TSX year to date and felt
this was a good time to take profits and raise some
cash.

Fall 2014 Issue

We will maintain our overweight cash position until

there are clear signals that the market trend is
improving at which time we will take advantage of
stocks that are on sale. There are excellent buying
opportunities as companies in U.S. and Canada are
trading below their 10 year price to earnings
valuations, meaning they havent been this cheap in
10 years so it may be time to go shopping.
No one can predict how prices will move in the short
term, there are a number of circumstances that
remain supportive of markets, including low interest
rates, strong corporate earnings, and a strengthening
North American economy. The best way to weather
market volatility is to take a longer-term view and
remain invested in a diversified portfolio that is
tailored to your individual objectives. Diversification
by asset class, industry sector and geographic region
helps to provide more stable returns, because not all
investments respond to events the same way.
An Uneven Global Economic Recovery Continues
We are currently in the sixth year of recovery since
the Great Recession and we have yet to see
synchronized global growth. Economic data from
developed nations like the U.S. is promising but
uneven global growth is a concern which has
contributed to the recent increase in market volatility.
Canada
The Canadian economy has started to reap the
benefits of stronger growth momentum in the U.S..
Our exports have benefited from a weaker Canadian
dollar and industrial production and business
confidence continue to improve. On the job front we
continue to see improvement as unemployment
levels have fallen to six year lows, now down to 6.8%
from 7%.

U.S.
Business hiring and investment activity continue to
drive growth in the U.S., the worlds largest
economy. Unemployment continues to improve,
dropping to 5.9% last month, this coupled with
recovery in housing and spending have contributed
to growth momentum.
The Federal Reserve is set to end their asset
purchase program by the end of October. Market
participants are speculating that the next steps for
the Federal Open Market Committee will start raising
interest rates by mid-2015. This marks a major shift
in monetary policy from easing to tightening, which
has added to market volatility, the timing of this may
be impacted by overall global growth.

International Markets
Economic growth in North American is on track but
other global motors are stalling. Growth in China
remains strong but is slowing and there is concern of
risk in real estate prices. Europe and Japan struggle
with weak demand, little economic momentum and
wide range of uncertainties such as Ukraine/Russia
conflict, the Islamic State in Syria and Iraq.
The European Central Bank (ECB) has taken
additional measures to prompt growth, improve
unemployment and avert deflation after a string of
disappointing data over the last few months. There
continues to be opportunity in certain areas of
Europe as their recovery is a few years behind North
America.

Autumn carries more gold in

its pocket than all the other

Fall 2014 Issue

Our mission is to help our

clients enhance, protect and
sustain their wealth...

Outlook
The International Monetary Fund recently cut global
economic growth for 2014 from 3.4% to 3.3%. North
America remains a bright spot for growth. The U.S. is
expected to expand at 2.2% in 2014, an upward revision
since July and very good considering that the economy
contracted in the first quarter. Canada is another bright
spot among developed nations. The IMF raised Canadas
GDP forecast from 2.2% to 2.3% and growth to pick up to
2.4% in 2015.

In Closing
We would like to express our appreciation for the ongoing
trust and confidence that you have placed with us. Should
you wish to discuss any aspect of your financial plan in
greater detail, our team is just a phone call away.
Sincerely,
Gary, Janet & Peter
Gary M. Renaud, CFP, CIM, FCSI, TEP
Executive Director, Private Client Group & Portfolio Manager
HollisWealth
Janet Geiger, MBA, CFP, CIM, FCSI
Portfolio Manager &
Senior Investment Advisor
HollisWealth
Peter Halchuk, B.Sc., CFP, CIM, FMA
Portfolio Manager &
Investment Advisor
HollisWealth

This newsletter was prepared solely by Gary Renaud, Janet Geiger

and Peter Halchuk who are registered representatives of
HollisWealth (a division of Scotia Capital Inc., a member of the
Canadian Investor Protection Fund and the Investment Industry
Regulatory Organization of Canada). The views and opinions,
including any recommendations, expressed in this newsletter are
those of Gary Renaud, Janet Geiger and Peter Halchuk alone and not
those of HollisWealth. Trademark of The Bank of Nova Scotia, used
under license. Life Span Financial Strategies is a personal trade name
of Gary Renaud, Janet Geiger and Peter Halchuk.
The information in this letter is derived from various sources,
including CI Investments, Signature Global Asset Management,
Cambridge Global Asset Management, Globe and Mail, National Post,
Bank of Montreal Economics, and Trading Economics. Index
information was provided by TD Newcrest and PC Bond. This material
is provided for general information and is subject to change without
notice. Every effort has been made to compile this material from
reliable sources; however, no warranty can be made as to its
accuracy or completeness. Before acting on any of the above, please
contact us for individual financial advice based on your personal
circumstances.