Question: What is up with the market in Canada? I’ve just watched it go up around 180 points in three days and the ASX only goes up 12points in three days. Canada is only 200 points off its all-time high and we are a thousand points off!
Answer (By Paul Rickard): Thanks for your observation about the Canadian market.
On a year to date basis to Thursday midday and measured in USD, the Canadian market is showing gains of 6.88%. Most markets are flat this year – in the USA, the Dow Jones is down 0.20%, NASDAQ is up 0.50% and the S&P 500 is up 1.87% – in the UK, the FTSE 100 is off 0.52%.
The Australian market (again in USD) is up around 4.49% – arguably not that different to the Canadian market.
We are still some way from the previous high – maybe that reflects our lack of confidence, plus potentially an Australian dollar that got too high. While the Canadian dollar is also considered to be a “commodity currency, it didn’t get to the same levels as the Aussie did 12 to 18 months back.
Question 2: We would like to replace the personal trustees of our SMSF with a corporate trustee. However we are told that all the assets would have to reflect this change in ownership. Managed funds and shares would have to be sold/redeemed and repurchased and term deposits terminated early. Is this correct?
Answer 2 (By Tony Negline): You need to change the trustee and the assets at the same time (and show you’ve done all you can to make the second step occur ASAP after company becomes trustee).
Most managed funds, share brokers and registries will allow you to change trustee without buying/selling – they all have similar but slightly different requirements so I would check with each of them.
Some brokers and registries charge fees and real estate is the hardest and most expensive asset, as you need to get a lawyer involved and then get the title changed.
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