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Despite the travails of working in the financial services sector in 2008, two advisory firms have been named to the top 10 of Best Employers in Canada, as ranked by human resources consulting firm Hewitt Associates and Report on Business magazine.

Edward Jones was listed as the fourth-best place to work, rising one spot over last year. This is the seventh year in a row that the company has been named to the top 10.

“We are honoured to once again be recognized by our associates as being one of the best places to work in Canada,” said Gary Reamey, principal, Edward Jones Canada. “The Edward Jones ranking is particularly significant as it is formed by the opinions of our financial advisors, branch office administrators and home-office associates.”

Wellington West was the only other financial services firm to crack the top 10, ranking sixth. In the past three consecutive years, Wellington West was ranked as number one or number two.

“Earning a spot in the top 10 is especially meaningful to us this year,” said Charlie Spiring, CEO and founder, Wellington West Holdings Inc. “This is a tough time to be in the financial services industry. The fact that our employees and new recruits continue to connect with our culture and corporate vision is a huge advantage and gives us great confidence as we work our way through the challenging capital markets.”

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U.S. advisors cheer up, a little

American financial advisors are recovering some of their confidence in both the economy and the stock market, according to Rydex AdvisorBenchmarking.

The Advisor Confidence Index reading for late December stood at 83.57, up from 82.46 in November. A reading of 100 is considered neutral, while readings below that are negative.

The ACI is made up of four elements: current economic outlook, six-month economic outlook, 12-month economic outlook and stock market outlook. The largest contributor to December’s 2% ACI increase was the stock market outlook, which rose 4.73%, followed by the current economic outlook, which was up 3.78%. The greatest drag on the overall index was the 12-month economic outlook, which declined 3.17%.

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Commodities fell with a thud in November

The price of Canada’s most important export commodities continued to lose ground in November, as the Scotiabank Commodity Price Index fell 9.4% month over month. The index has dropped 35.4% since reaching an all-time high in July.

“The shift from boom to bust in many commodities has been the most rapid in the history of the Scotiabank Commodity Price Index, with data back to 1972,” says Patricia Mohr, vice-president, economics and commodity market specialist at Scotiabank.

Mohr says prices were hit not only by the economic slowdown but by the exit of many hedge funds from the commodity market. Global economic growth forecasts have been further downgraded to just 1.5% for 2009.

Hardest hit was the oil and gas sub-index, which dropped 17.5% as the price of crude fell. OPEC ministers have since agreed to cut output by 4.2 million barrels per day, which amounts to about 5% of world supplies, including biofuels alternatives. The output cut had little effect, however, as crude trended lower.

“It will be a challenge for OPEC to steady prices in an environment of plunging expectations for world demand,” says Mohr. “In our view, a sharp global capital spending slowdown on new oil field development, which now appears likely in 2009, will set the stage for tighter markets and a big rebound in prices early next decade.”

The prices for many metals and minerals were also much lower in November, as the outlook for automakers darkened. Only potash and uranium held their ground, with the former benefiting from tighter supply management, while the latter is seen to be rising due to demand from electrical utilities.

While the prices for most industrial inputs are expected to fall further over the next six months, Mohr points out that traditional safe havens, like gold, should perform better than other commodities. Potash prices remain historically high, and Mohr predicts that oil and uranium will stage a rally over a two-year time horizon.

(12/29/08)