Responsive Capital Blog

The Official Responsive Blog - AI-Driven Online Wealth Management

[responsiveai]

AI Update - May 9, 2017

Canadian Commodity Index became bullish on Defensive Equities

What is the Canadian Commodity Index factor?

A commodity index tracks a basket of commodities to measure their performance. The primary commodity in Canada is Oil. You can learn more here and here

What does this change mean?

This change means our AI platform is telling us that the Canadian Commodity Index factor is now supporting a more bullish outlook on defensive equities. As such, any asset classes in our portfolios that contain defensive equities will potentially go overweight (i.e. increase portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - May 1, 2017

US Unemployment became bearish on Canadian Stocks

What is the US Unemployment factor?

An unemployed person is one who is actively seeking work, but is able to find it. In a broad sense, the higher a country's unemployment is the slower its economy will grow. Read more here

What does this change mean?

This change means our AI platform is telling us that the US Unemployment factor is now supporting a more bearish outlook on Canadian stocks. Because US unemployment is decreasing, US stocks will likely outperform Canadian stocks. As such, any asset classes in our portfolios that contain Canadian stocks will potentially go underweight (i.e. decrease portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - April 17, 2017

German Industrial Production became bullish on the Euro

What is the German Industrial Production factor?

Industrial production refers to the output of industrial establishments and covers sectors such as mining, manufacturing and public utilities (electricity, gas and water). Read more here.

What does this change mean?

This change means our AI platform is telling us that the German Industrial Production factor is now supporting a more bullish outlook on the Euro. As such, any asset classes in our portfolios that contain euro will potentially go overweight (i.e. increase portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - April 11, 2017

MSCI Emerging Markets Price Index became bullish on EAFE

What is the MSCI Emerging Markets Price Index factor?

The MSCI Emerging Markets Index captures large and mid cap representation across 23 Emerging Markets countries. The index has 833 constituents and covers approximately 85% of the free float-adjusted market capitalization in each country.

What does this change mean?

This change means our AI platform is telling us that the MSCI Emerging Markets Price Index factor is now supporting a more bullish outlook on the Europe, Asia, and Far East (EAFE) regions. As such, any EAFE asset classes in our portfolios will potentially go overweight (i.e. increase portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - March 27, 2017

The Chinese Manufacturing Index became bullish on the Yen

What is the Chinese Manufacturing Index factor?

The China Manufacturing Purchasing Managers' Index measures the performance of over 400 private companies in China's manufacturing sector. It is calculated by weighting five different metrics: New Orders, Output, Employment, Suppliers' Delivery Times, and Stock of Items Purchased. Read more here.

What does this change mean?

This change means our AI platform is telling us that the Chinese Manufacturing Index factor is now supporting a more bullish outlook on the Yen. As such, any asset classes in our portfolios that contain the Yen will potentially go overweight (i.e. increase portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - March 21, 2017

OECD Leading Indicator became bearish on Canadian Equity

What is the OECD Leading Indicator factor?

The OECD Composite Leading Indicator is used to provide early signals of turning points in business cycles. It is comprised of many different metrics for each of the OECD countries. Read more here.

What does this change mean?

This change means our AI platform is telling us that the OECD Leading Indicator factor is now supporting a more bearish outlook on canadian equity. As such, any asset classes in our portfolios that contain canadian equity will potentially go underweight (i.e. decrease portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - March 13, 2017

Chinese Steel Production Growth became bearish on Copper

What is the Chinese Steel Production Growth factor?

The Chinese steel production factor measures the output of the steel industry in China, which is the largest in the world. In recent years, China has had an oversupply of steel which has resulted in "zombie companies". Read more here and here.

What does this change mean?

This change means our AI platform is telling us that the Chinese Steel Production Growth factor is now supporting a more bearish outlook on copper. As such, any asset classes in our portfolios that contain copper will potentially go underweight (i.e. decrease portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - March 7, 2017

US BAA Bonds became bearish on World Equity

What is the US BAA Bond factor?

Bonds are given ratings by several independent rating agencies to indicate their credit quality. A higher rated bond is seen as safer and its yield will usually decrease as its rating increases. A BAA rated bond is seen as adequately safe but changing economic conditions could cause the obligor to default on its financial commitments. Read more about bond ratings here and here.

What does this change mean?

This change means our AI platform is telling us that the US BAA Bond factor is now supporting a more bearish outlook on world equity. As such, any asset classes in our portfolios that contain world equity will potentially go underweight (i.e. decrease portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - February 20, 2017

Euro Periphery to German Yield Spread became bullish on Bonds

What is the Euro Periphery to German Yield Spread factor?

This factor is the aggregate spread in bond yields between Portuguese, Spanish, Irish, Italian and Greek Bond Yields vs German Bond Yields. Read more here

What does this change mean?

This change means our AI platform is telling us that the Euro Periphery to German Yield Spread factor is now supporting a more bullish outlook on bonds. As such, any asset classes in our portfolios that contain bonds will potentially go overweight (i.e. increase portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - February 15, 2017

German Industrial Production became bullish on the Euro

What is the German Industrial Production factor?

Industrial production refers to the output of industrial establishments and covers sectors such as mining, manufacturing and public utilities (electricity, gas and water). Read more here.

What does this change mean?

This change means our AI platform is telling us that the German Industrial Production factor is now supporting a more bullish outlook on the Euro. As such, any asset classes in our portfolios that contain the Euro will potentially go overweight (i.e. increase portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

Why do modest-income Canadians still have any non-registered investments?

TL;DR - Don’t forget the March 1 RRSP deadline and consider transferring assets from non-registered accounts into TFSA or RRSP.

On January 1 each Canadian adult got another $5,500 of contribution room for Tax Free Savings Accounts (TFSAs), which are an alternative to Registered Retirement Savings Accounts (RRSPs). Canadians now over 25 years old have accumulated $52,000 of capacity (the exact annual amounts have varied a bit). TFSAs can be held at multiple institutions and money can be taken out to spend without any extra government taxes or fees. Withdrawals create capacity for future contributions.

March 1 is the deadline for the 2016 RRSP contribution. Each year the ‘contribution room’ is 18% of taxable income or $25,370 (indexed for inflation), whichever is lower. Similar to the TFSA, many people have unused capacity from prior years (this personalized figure is tracked and disclosed by CRA). For example, with an income of about $80,000, that adds up to about $100,000 of accumulated capacity just since 2009. One benefit of the RRSP is it reduces your current year taxes, or as most people put it, “You get cash back of about 1/3 of the contribution”. Furthermore, investment returns are not taxed directly (down the line retirement withdrawals will be taxed as income). In contrast to the TFSA, it’s harder to spend the money until you retire, which reduces flexibility but is a deliberate behavioral friction.

Room for something like $300,000 of non-residential investments for a 30ish couple sounds like quite a lot. Many younger professionals now have plenty of space to stick to registered accounts and never worry again about tracking and paying tax on capital gains or losing “half” their bond yield to taxes. But many have legacy taxable accounts. 

Everyone’s situation is different. Do you have taxable investments that could be moved into a TFSA or RRSP? What are some of the good reasons to keep assets where they are?

[responsiveai]

AI Update - January 30, 2017

Conference Board Leading Indicator became bullish on Bonds

What is the Conference Board Leading Indicator factor?

The Conference Board (CB) says their mission is to "create and disseminiate knowledge about management and the marketplace to help businesses strengthen their performance and better server society". Even though the CB provide many metrics and resources, the most interesting for traders are economic research and consumer-survey data. Read more here.

What does this change mean?

This change means our AI platform is telling us that the Conference Board Leading Indicator factor is now supporting a more bullish outlook on bonds. As such, any asset classes in our portfolios that contain bonds will potentially go overweight (i.e. increase portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - January 23, 2017

European Industrial Confidence became bearish on Copper

What is the European Industrial Confidence factor?

The European Industrial Confidence factor is an assessment of the output from the manufacturing, mining, electric and gas industries. Read more here

What does this change mean?

This change means our AI platform is telling us that the European Industrial Confidence factor is now supporting a more bearish outlook on copper. As such, any asset classes in our portfolios that contain copper will potentially go underweight (i.e. decrease portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - January 10, 2017

Long to 3 Month Bond Spread became bullish on US Bonds

What is the Long to 3 Month Bond Spread factor?

This factor measures the perceived risk of buying long term bonds over short term 3 month bonds. When the spread is increasing, long term government bonds are paying a higher relative yield compared to short term government bonds.

What does this change mean?

This change means our AI platform is telling us that holding long term bonds will be more profitable than holding short term bonds or straight cash. As such, any asset classes in our portfolios that contain bonds will potentially go overweight (i.e. increase portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - January 5, 2017

Chinese M1 Monetary Supply became bearish on World Equity

What is the Chinese M1 Monetary Supply factor?

Monetary supply measures the amount of monetary assets available in an economy. The metric is important because it can affect inflation and interest rates, both of which have a major impact on the general economy. It includes physical money - both paper and coin - as well as checking accounts, demand deposits and negotiable order of withdrawal (NOW) accounts. Read more here.

What does this change mean?

This change means our AI platform is telling us that the Chinese M1 Monetary Supply factor is now supporting a more bearish outlook on world equity. As such, any asset classes in our portfolios that contain world equity will potentially go underweight (i.e. decrease portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - December 28, 2016

US Treasury Bill Yield became bearish on World Equity

What is the US Treasury Bill Yield factor?

Treasury yield is the interest rate the US Government pays to borrow money. It also influences the interest rate individuals and businesses pay to borrow money which means treasury yields are an indicator for the overall health of the economy. Read more here

What does this change mean?

This change means our AI platform is telling us that the US Treasury Bill Yield factor is now supporting a more bearish outlook on world equity. As such, any asset classes in our portfolios that contain world equity will potentially go underweight (i.e. decrease portfolio's %) over the coming months.

Are your investments monitoring the world economy?

Get a free investment portfolio recommendation from Responsive:

Get Started!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe

[responsiveai]

AI Update - December 19, 2016

S&P 500 Price to Earnings became bearish on Canadian Stocks

What is the S&P 500 Price to Earnings factor?

This factor is the aggregate price to earnings ratio for the S&P500 Index. The price-earnings ratio (P/E Ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings. Read more here.

What does this change mean?

This change means our AI platform is telling us that the S&P 500 Price to Earnings factor is now supporting a more bearish outlook on canadian stocks. As such, any asset classes in our portfolios that contain canadian stocks will potentially go underweight (i.e. decrease portfolio's %) over the coming months

Are your investments monitoring the world economy?

Responsive is accepting new clients. Click the button below to sign up!

Sign Up!

Want Updates via Chatbot?

Enable notifications on Facebook to get economic updates via chatbot

Enable Chatbot

DISCLAIMER: The Responsive.AI Update does not constitute investment advice and is for information purposes only. Responsive Capital Management bares no liability for the usage of this data and the data is provided as is.

Unsubscribe