Monthly Archives: October 2013

Mutual fund distribution season risks

   Mutual funds issue distributions to shareholders typically in either early November or late December.   Investors should ask their advisor to examine the mutual funds that he has recommended to clients and see what are the risks of getting a distribution. Bond funds had very modest potential unrealized capital gains or no gains. The bond market this year came close to breaking even roughly speaking and thus the risk of a significant distribution from a bond mutual fund is low. Usually when a moderate amount of outflow of mutual fund customers occurs the fund can sell things with a high tax basis and this avoids trigger capital gains distributions. Mutual funds usually have some easy

October 25th, 2013|mayflowercapital blog|Comments Off on Mutual fund distribution season risks

Full employment economy ready to surprise investors

Tomorrow the BLS releases the monthly “Employment Situation Report”. David Rosenberg of Gluskin, Sheff and Macroeconomic Advisors said if no fiscal tightening had occurred in 2013 then the unemployment rate would be 6.0% not 7.3%. Rosenberg said monthly new job creation next year may be 280,000 instead of the recent average of 180,000. My opinion is that at this level, after subtracting 100,000 to 125,000 a month for population increase, in a year the unemployment rate would improve from 7.3% to 5.8%. At that level workers would feel more prosperous and buy more things creating a virtuous cycle where the rate of job growth would accelerate as businesses higher more people because of increased consumption.

October 21st, 2013|mayflowercapital blog|Comments Off on Full employment economy ready to surprise investors