Investing in quality companies key to positive returns
North American equity markets retraced gains made in the first quarter and are now down on the year.
In Canada, the S&P TSX Composite declined 5.5% on the quarter and is off 2.5% on the year. The broader S&P 500 index performed slightly worse, declining 11.4% on the quarter and 6.7% on the year.
While markets have been more volatile recently, our outlook has not changed. We consider the TSX to be range-bound between 11,000 to 12,500, as it has been for the last nine months. We are positioned in companies that pay higher than average dividends, and generate an income stream comparable to that paid on longer-term government bonds.
READ MORE. LEON FRAZER QUARTERLY REVIEW, Q2 2010