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(November 8, 2007)Troubles from the U.S. housing market will prove no match for the global forces driving the TSX’s recovery, the latest CIBC World Markets report argues.

“October’s rebound in the TSX was aided by record oil prices and a turnaround in uranium stocks reflecting global growth that’s as firm as ever,” says Jeff Rubin, chief strategist and chief economist at CIBC World Markets in his monthly Canadian Portfolio Strategy Outlook report.

Rubin remains bullish in his view of the TSX and is reiterating his call for the TSX to reach 16,200 by December 2008, and is sticking to a 12 percentage-point overweight position in equities.

“We expect to see continued market leadership from the energy and materials sectors which together comprise almost half of the TSX’s total market capitalization,” he says. “This should more than offset the drag from the current spillover effects from the U.S. subprime mortgage market on Canadian bank stocks.”

Rubin says the TSX’s weighting in energy and materials have tripled since the start of the decade to 45% of market capitalization.

“[This] couldn’t come at a more propitious time, as the U.S. economy has gone on recession watch while the global economy has seldom been stronger,” says Rubin. “Outside of the U.S. economy, growth is soaring. Recent estimates from the IMF now point to near 5% growth in real global GDP next year.”

Rubin has also raised his short-term forecast on the loonie, which he expects will reach a record high of US$1.11 by year end, as stimulus from planned tax cuts and strong resource prices preclude a loonie-cooling interest rate cut. However, he expects the Canadian dollar will settle back to a five-cent premium over the greenback in 2008.

The prospect of an even stronger loonie has convinced Rubin to cut half a percentage point in his portfolio’s underweight position in industrial stocks, which are highly exposed to the currency.

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IA wins award for online retirement planning tool

(November 8, 2007) Industrial Alliance Insurance and Financial Services has won an award of excellence in communication for its group pension plan program.

The company’s The All about you! assisted enrolment program won the award of excellence in the Integrated Campaigns category of the 2007 Insurance & Financial Communicators Association (IFCA) contest.

The program allows participants in group retirement plans to plan their retirement in three easy steps, either online through a secure website, or in writing, using an education kit. The program includes a tool that gives participants an immediate idea of the amounts they need to save to enjoy a comfortable retirement.

“This award recognizes our constant concern to provide participants in our retirement plans with clear, easy to use documentation for all our products,” says Lucie Lachance, IA’s director of actuarial and marketing services for group pensions. “For example, through the simple three-step process in All about you!, participants can quickly and easily understand all the major factors they should consider in their retirement planning.”

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AIM Trimark launches Global Real Estate Fund

(November 8, 2007) AIM Trimark Investments has launched the INVESCO Global Real Estate Fund.

INVESCO Global Real Estate Fund invests primarily in securities of real estate and real estate-related companies, including real estate investment trusts from around the world. The fund’s total return will be based on a combination of capital growth and income.

AIM Trimark says the fund is the ideal investment for market volatility, because global real estate markets have a relatively low correlation to each other and to other asset classes.

“We are pleased to make this new investment solution available to Binvestors by leveraging the global expertise of our partners within INVESCO,” says Phil Taylor, senior managing director and head of INVESCO PLC’s North American retail business, which includes AIM Trimark.

(11/08/07)