Global Insight Weekly - RBC Wealth Management USA

Global Insight Weekly - RBC Wealth Management USA

R B C W E A LT H M A N A G E M E N T
GLOBAL INSIGHT
W E E K L Y
MARCH 13, 2015
A C LO S E R LO O K
Can the U.S. Cope With King Dollar?
Kelly Bogdanov – San Francisco
The ultra-strong dollar and months of soft data have raised questions about whether the U.S. economy
can continue to lead. There are a number of reasons we believe it can.
This cycle, the strong dollar should continue to constrain S&P
500 earnings growth and exports until the rally moderates. The
2015 S&P 500 consensus earnings estimate has come down to
$120/share* from $133 last October due to the dollar run and
crude oil collapse. The estimate is vulnerable to pulling back
further if the dollar continues to race higher in the near term.
Regardless, the economy should be able to weather a strong
dollar and grow at a reasonable pace because it is much
*Consensus earnings data from Thomson Reuters I/B/E/S
Click here for authors’ contact information. Priced as of 3/13/15 market close,
EST (unless otherwise noted). All values in USD unless otherwise noted.
For Important and Required Non-U.S. Analyst Disclosures, see page 6.
Source - RBC Wealth Management, Bloomberg; TWD data through 3/6/15, DXY data
through 3/12/15
M A R K ET P U L S E
3
What’s in store for the upcoming Fed meeting?
3
Job losses mount in Canada’s resources sector
4
Select European industries benefitting from the weak euro
4
China takes a big step to reduce local debts and tail risks
2015
2012
2009
2006
2003
2000
1997
1994
1991
1988
1985
During two similar rallies, economic growth varied widely.
After the dollar surged in the early 1980s, the economy
quickly fell back into recession (a number of factors caused
this, including the Fed’s aggressive battle against inflation).
However, in the mid-1980s, real GDP growth averaged 4.2% in
the four quarters following the sharp dollar rally.
1982
For starters, there is no direct correlation between the dollar’s
performance and economic growth.
1979
We don’t think so.
US Dollar Index (y/y % chg)
US Trade Weighted Dollar (y/y % chg)
40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
1976
Might the dollar’s outsized-move stop the nearly six-year
economic expansion in its tracks and knock the U.S. off its
leadership perch?
One of the Strongest Rallies for the Dollar in Four Decades
1973
The dollar is in the midst of the third-strongest rally of the
past four decades. The trade-weighted index, which values the
dollar against the currencies of major trading partners, has
sprinted 20% year over year. The U.S. Dollar Index has surged
25% during the same period (see chart).
Low-Income Wage Growth Has Outpaced
High-Income in the Past Two Years
Weekly Earnings for Full-Time Wage and Salary Workers by Income Quantile
(annualized growth)
The U.S. economy also has a sturdier foundation than
commonly given credit; it has been shored up significantly.
Bank balance sheets are the strongest they’ve been since
long before the financial crisis. We believe the dollar rally is
indicative of this underlying durability.
These are among the reasons we believe the U.S. economy
will remain relatively sturdy, and the equity market can deliver
worthwhile returns this year, albeit perhaps with some bumps
along the way.
2013–2014
10th
Percentile
0.7%
1.9%
1.7%
1.6%
1.5%
1.4%
2.5%
2.6%
0.9%
Importantly, the economic recovery is finally broadening out.
For example, wage growth among lower-income segments has
outpaced higher-income segments in the past two years (see
chart). Consumer debt levels have plunged—private sector
debt as a percent of nominal GDP has retreated to 144% from
a peak of almost 170% in 2009; consumer debt is down roughly
20% during the same period. Optimism among CFOs has
climbed to its highest level in almost eight years.
2009–2012
1.0%
more insular and less dependent on trade than other large
economies. Exports typically represent only 10%–14% of U.S.
GDP (by comparison: Germany 50%, Canada and U.K. 30%,
China 26%).
25th
Percentile
50th
Percentile
75th
Percentile
90th
Percentile
Source - RBC Wealth Management, national research correspondent, Bureau of Labor
Statistics
WWHHATAT’ S’ SMMOOV VI NI NGGMMA AR RK KETETS S
Currencies in the Driver’s Seat
The European Central Bank’s (ECB) first week of bond purchases
contributed to significant moves in global markets, including a
3.2% decline in the euro to 1.05 versus the dollar, its lowest level
since early 2003, and declines of 3%+ in some emerging market
currencies. The U.S. Dollar Index rallied 5.1%, in the past two
weeks, the biggest back-to-back gain since May 2010.
Many equity markets jostled back and forth, influenced by
currency movements: China, Japan, and Europe outperformed;
the U.K., Canada, and the U.S. lagged.
European sovereign bond yields ratcheted lower again as the
ECB sopped up supply. Germany’s 30-year yield dipped to
0.696% midweek (that’s not a typo). The yield spread between the
10-year U.S. Treasury and German Bund climbed to its highest
level since 1989 at 190 basis points (bps). RBC Capital Markets
believes the spread will widen further, to more than 200 bps, as
the Federal Reserve begins to normalize U.S. interest rates.
Crude oil prices retreated as the dollar rallied and data showed
another build in U.S. oil inventories, which are quite extended
relative to normal levels this time of year (see chart). WTI oil has
been weaker than Brent lately; it traded down to $44.84/bbl late
Friday. It is testing its January closing low of $44.45/bbl.
GLOBAL INSIGHT WEEKLY
Oil Market Looks Oversupplied Relative to the Historical Norm
U.S. Oil Supply/Demand Ratio (13-week moving avg - left axis)
3-year Average Supply/Demand Ratio (left axis)
WTI Oil Price ($/bbl - right axis)
1.06
1.05
1.04
1.03
1.02
1.01
1.00
0.99
0.98
0.97
Jan-14 Apr-14
110
100
90
80
70
60
50
40
Jul-14
Oct-14
Jan-15 Apr-15
Source - RBC Capital Markets U.S. Economics, Haver Analytics; data for supply/demand
and price through 3/6/15
March 13, 2015
2
U N I T E D S T AT E S
The Path for Fed Funds - Mixed Messages
Craig Bishop – Minneapolis
The March 17–18 Federal Reserve meeting could very well
be the most important in some time, as it should provide the
most significant hints to date about when the Fed will begin to
reduce the size of the punchbowl. The following are issues we
believe investors should focus on:
■
■
■
■
■
Forward Guidance – If the word “patient” is dropped from
the Fed’s official statement, it would leave economic data as
the main tool to guide monetary policy (data dependency),
and would give the Fed flexibility to raise interest rates at
any subsequent meeting. The next FOMC meeting is in late
April; but realistically, June provides the most likely first
launch date.
The Economy – In January, the Fed noted economic activity
continues to expand at a solid pace, so, we believe continued
improvement should provide cover to begin hiking rates.
Unemployment currently sits at the top of the Fed’s full
employment range of 5.2%–5.5% and GDP growth could
approach 3% this year. Inflation is still well below the Fed’s
2% threshold (core PCE at 1.3%), but the Fed feels confident it
will move toward its target level in coming months.
Mixed Messages – Survey-based economic measures
(those mentioned above) support a June hike, but marketbased measures suggest a move later in the year. While Fed
officials have struggled with the mixed signals from time to
time, in recent missives they have been clear in stating “the
market may be disappointed”—meaning, a rate hike could
occur this summer.
The “Dots” – Market expectations have the peak or terminal
Fed Funds rate at about 2.65% past 2018; but the Fed’s
indicated level is about 100 basis points higher (see chart).
Will Fed members’ projections, or “dots,” ratchet down to
reflect market expectations?
The Tightening Cycle – In our view, the abundance of
attention given to the first rate hike is short-sighted; the
bigger focus should be on the speed and duration of the
tightening cycle itself. We believe it will be different this
time as slow growth, low inflation, and accommodative
global central banks allow the Fed time to assess the impact
of each move. We expect a much slower, longer tightening
cycle than normal. This may be a topic for Fed Chair Janet
Yellen’s press conference.
While parsing “Fed-speak” is definitely more art than science,
at this point we believe Yellen’s Monetary Policy Report to
Congress last month indicates the process has begun in earnest
to communicate the Fed’s intention to hike rates for the first
time in almost nine years. Various Fed officials suggest this will
happen in June; RBC Capital Markets and many others agree.
GLOBAL INSIGHT WEEKLY
FOMC Median
4.0%
3.5%
Primary Dealer Median
Market-Based Expectations
3.0%
3.63%
2.50%
2.5%
2.65%
2.0%
1.5%
0.0%
2.03%
1.13%
1.43%
1.0%
0.5%
3.75%
0.60%
Dec 2015
Dec 2016
Dec 2017
Longer Term
Source - RBC Wealth Management, Bloomberg, Federal Reserve, January 2015 Primary
Dealer Survey; data on 03/12/2015
CANADA
Patrick McAllister & Alana Awad – Toronto
■
The S&P/TSX Composite declined, with nearly every sector
contributing to the weakness. The resource sectors were
particularly hard hit as energy and gold bullion prices
sagged. The gold price sank to a year-to-date low amid
persistent U.S. dollar strength.
■
PotashCorp shares retreated as investors fretted over
the lack of a new supply contract between Capotex, the
marketing venture for North American potash producers,
and China. Bearish 2015 outlook commentary from
Uralkali, a large Russian-based potash producer, also
weighed on sentiment.
■
The Canadian unemployment rate ticked higher by 0.2%
to 6.8% in February. But, employment in Alberta softened
with 14,000 jobs lost. Employment in the province’s natural
resources sector has decreased by 20,000 since its most
recent peak in September 2014.
■
Government bond yields trended downward for most of
the week, retracing some of the move higher that occurred
when the Bank of Canada held rates constant at 0.75% on
March 4.
■
The Canadian Dollar continues to hit new 10-year lows and
reached $0.780 versus the U.S. dollar.
■
There were five preferred share new issues that began
trading during the week, all of which traded down from
their issuance price. Overall, the preferred share market
exhibited some weakness during the week as government
yield levels moved lower.
■
Unlike the preferred share market, there has been only
modest credit spread widening in response to the flurry of
March 13, 2015
3
new issue activity that has occurred recently. The resilience
of the credit market speaks to the continued demand for
corporate product.
The Weaker Yen Has Helped Lift Japanese Equities
20000
130
Nikkei (left axis)
USD/JPY (right axis)
120
17000
EUROPE
Frédérique Carrier & Davide Boglietti – London
■
■
European equities continued their positive trend on
increasing expectations of future improvements in
macroeconomic data for the eurozone and on the back of a
positive earnings revision. This was mainly driven by further
euro currency weakness following the start of the European
Central Bank’s (ECB) Quantitative Easing (QE) program.
The Stoxx 600 Index increased 0.62% to 396.61 during the
week. Its year-to-date performance stands at +15.79%, a
relevant outperformance compared to global indexes,
although the currency impact brings this result in U.S.
dollars to +0.45%, in line with other developed markets.
The ongoing ECB QE program continues, however, to be
supportive for sentiment and the positive momentum of
European stocks. The QE liquidity injection should boost
Eurozone GDP growth. RBC Capital Markets estimates
it will rise 0.4%–0.5% q/q from here onward versus the
0.1%–0.3% q/q range of the past two years.
■
Sectors with high exposure to international revenues,
including autos, chemical, and health care, that can benefit
most from the currency weakness, again drove the indexes.
The oil & gas and mining sectors, on the contrary, continued
their relative underperformance on the back of weaker
commodity prices and exposure to Emerging Markets,
negatively impacted by the strengthening of the U.S. dollar.
■
In the U.K., the FTSE 100 Index retreated further from
the recent record high 6,961.14 level on the back of the
highly weighted oil sector’s poor performance. Recent
improvements in unemployment data are supportive
for consumer demand and, therefore, for some segments
of the U.K. equity market including the retail and services
sectors. However, the May 2015 general election represents
another reason for short-term concern for U.K. equities.
Policy-sensitive sectors like utilities and banks are likely to
be impacted by potential government interventions.
A S I A PA C I F I C
Jay Roberts – Hong Kong
■
110
14000
100
11000
90
80
8000
5000
2009
70
60
2010
2011
2012
2013
2014
2015
Source - RBC Wealth Management, Bloomberg; data through GMT 14:09 on 3/13/15
concerned about its size (RMB 10.9T according to a 2013
audit) and quality. Vice Finance Minister Zhu Guangyao
said the State Council has approved a debt-swap of RMB
1T ($160B) for local governments and that a detailed plan
will be announced soon. In our view, this is a meaningful
development in addressing an issue that has been left
hanging for several years. Chinese bank stocks rallied on
the news.
■
The Bank of Korea (BoK) cut its benchmark lending rate
by 25 basis points to a record low of 1.75%. This was not
expected in consensus forecasts, although RBC Capital
Markets was expecting a rate cut to come. The USD/KRW
rallied up to 1135. RBC Capital Markets remains positive
on the USD/KRW pair, targeting 1150 as the first stop before
reassessing.
■
RBC Capital Markets commented that the BoK “cited the
slower than expected recovery in the domestic economy,
and inflation remaining lower for longer than previously
expected as reasons for the cut. BoK Governor Lee suggested
that the rate cut was pre-emptive, rather than the start of
a string of cuts. Going forward, we expect that any further
rate cuts will be data dependent. Governor Lee also said that
big variables going forward now will be when the Federal
Reserve hikes rates and at what speed.”
■
It was another strong week for Japanese equities with the
Nikkei and TOPIX indexes rallying to fresh highs. A weaker
yen aided the rally. Japanese equities may be in overbought
territory in the short term, in our view, although we
maintain our positive, long-term stance.
China announced a debt-swap plan relating to local
government debt. The debt has been a much-discussed
issue over the past several years with market participants
GLOBAL INSIGHT WEEKLY
March 13, 2015
4
M A R K ET S C O R E C A R D
Data as of March 13, 2015
Equities (local currency)
S&P 500
Dow Industrials (DJIA)
NASDAQ
Russell 2000
Level
1 Week
MTD
YTD
12 Mos
Govt Bonds (bps chg)
Yield
1 Week
MTD
2,053.40
-0.9%
-2.4%
-0.3%
11.2%
U.S. 2-Yr Tsy
0.657%
-6.6
3.9
17,749.31
-0.6%
-2.1%
-0.4%
10.2%
U.S. 10-Yr Tsy
2.118%
-12.4
4,871.76
-1.1%
-1.8%
2.9%
14.3%
Canada 2-Yr
0.554%
-7.3
YTD
12 Mos
-0.7
31.9
12.5
-5.4
-52.7
8.2
-45.8
-45.0
1,232.14
1.2%
-0.1%
2.3%
4.7%
Canada 10-Yr
1.477%
-13.6
17.6
-31.1
-90.7
S&P/TSX Comp
14,731.49
-1.5%
-3.3%
0.7%
3.4%
U.K. 2-Yr
0.486%
-14.0
5.2
4.0
-12.2
FTSE All Share
3,648.24
-2.2%
-2.6%
3.3%
3.2%
U.K. 10-Yr
1.709%
-23.9
-8.7
-4.7
-97.8
396.61
0.6%
1.1%
15.8%
22.2%
Germany 2-Yr
-0.231%
-2.4
-0.4
-13.3
-37.2
Germany 10-Yr
0.257%
-13.6
-7.1
-28.4
-128.4
STOXX Europe 600
German DAX
11,901.61
3.0%
4.4%
21.4%
32.0%
Hang Seng
23,823.21
-1.4%
-4.0%
0.9%
9.5%
Shanghai Comp
3,372.91
4.1%
1.9%
4.3%
67.0%
Nikkei 225
19,254.25
1.5%
2.4%
10.3%
30.0%
India Sensex
28,503.30
-3.2%
-2.5%
3.7%
30.9%
3,362.77
-1.6%
-1.2%
-0.1%
9.1%
Brazil Ibovespa
48,595.81
-2.8%
-5.8%
-2.8%
6.9%
Mexican Bolsa IPC
44,002.29
1.7%
-0.4%
2.0%
15.7%
Singapore Straits Times
Commodities (USD)
Gold (spot $/oz)
Silver (spot $/oz)
Price
1 Week
MTD
YTD
12 Mos
Currencies
Rate
U.S. Dollar Index
1 Week
MTD
YTD
12 Mos
100.18
2.6%
5.1%
11.0%
25.8%
CAD/USD
0.78
-1.3%
-2.2%
-9.1%
-13.4%
USD/CAD
1.28
1.3%
2.2%
10.0%
15.4%
EUR/USD
1.05
-3.2%
-6.3%
-13.2%
-24.3%
GBP/USD
1.47
-1.9%
-4.5%
-5.3%
-11.3%
AUD/USD
0.76
-1.0%
-2.2%
-6.6%
-15.5%
USD/CHF
1.00
1.9%
5.3%
1.1%
14.9%
1,156.70
-0.9%
-4.7%
-2.4%
-15.6%
USD/JPY
121.38
0.5%
1.5%
1.3%
19.2%
15.61
-1.9%
-6.0%
-0.6%
-26.3%
EUR/JPY
127.41
-2.7%
-4.9%
-12.0%
-9.8%
5,867.00
1.8%
-1.0%
-7.9%
-8.9%
EUR/GBP
0.71
-1.3%
-1.9%
-8.3%
-14.7%
Oil (WTI spot/bbl)
44.84
-9.6%
-9.9%
-15.8%
-54.3%
EUR/CHF
1.05
-1.4%
-1.3%
-12.3%
-13.1%
Oil (Brent spot/bbl)
54.51
-8.7%
-12.9%
-4.9%
-49.2%
USD/SGD
1.39
1.1%
2.2%
5.1%
9.9%
2.73
-3.9%
-0.2%
-5.6%
-37.8%
USD/CNY
6.26
-0.1%
-0.2%
0.9%
2.0%
298.70
0.8%
-2.6%
-7.4%
-25.5%
USD/BRL
3.24
5.7%
14.0%
21.9%
37.0%
Copper ($/metric ton)
Natural Gas ($/mmBtu)
Agriculture Index
Source - Bloomberg. Note: Equity returns do not include dividends, except for the German DAX. Bond yields in local currencies. Copper and Agriculture Index data as of Thursday’s close.
Dollar Index measures USD vs. six major currencies. Currency rates reflect market convention (CAD/USD is the exception). Currency returns quoted in terms of the first currency in each
pairing. Data as of 9:35 pm GMT 3/13/15.
Examples of how to interpret currency data: CAD/USD 0.78 means 1 Canadian dollar will buy 0.78 U.S. dollar. CAD/USD -13.4% return means the Canadian dollar fell 13.4% vs. the
U.S. dollar year to date. USD/JPY 121.38 means 1 U.S. dollar will buy 121.38 yen. USD/JPY 19.2% return means the U.S. dollar rose 19.2% vs. the yen year to date.
U P CO M I N G EV E N TS
MON, MAR 16
WED, MAR 18
FRI, MAR 20, cont.
U.S. Industrial Production (0.3% m/m)
U.K. Unemployment (5.7%)
Canada CPI (1.0% y/y, Core 2.1% y/y)
TUE, MAR 17
BoE MPC meeting minutes
Canada Retail Sales (-0.5% m/m)
China Property Prices
Fed meeting (day 2 of 2)
BoJ meeting
THU, MAR 19
Japan Exports (0.2% y/y)
ECB TLTRO – 3rd allotment results
Eurozone Unemployment
FRI, MAR 20
Eurozone ZEW Surveys
U.K. Public Finances
Eurozone CPI (-0.3% y/y, Core 0.6% y/y)
U.S. Leading Index (0.3% m/m)
All data reflect Bloomberg consensus forecasts where available
GLOBAL INSIGHT WEEKLY
March 13, 2015
5
AUTHORS
Kelly Bogdanov – San Francisco, United States
[email protected]; RBC Capital Markets, LLC.
Craig Bishop – Minneapolis, United States
[email protected]; RBC Capital Markets, LLC.
Patrick McAllister – Toronto, Canada
Distribution of Ratings
For the purpose of ratings distributions, regulatory rules require member firms
to assign ratings to one of three rating categories - Buy, Hold/Neutral, or Sell regardless of a firm’s own rating categories. Although RBC Capital Markets, LLC
ratings of Top Pick (TP)/Outperform (O), Sector Perform (SP) and Underperform (U)
most closely correspond to Buy, Hold/Neutral and Sell, respectively, the meanings
are not the same because our ratings are determined on a relative basis (as
described below).
[email protected]; RBC Dominion Securities Inc.
Alana Awad – Toronto, Canada
[email protected]; RBC Dominion Securities Inc.
Frédérique Carrier – London, United Kingdom
[email protected]; Royal Bank of Canada Investment Management (UK) Ltd.
Davide Boglietti – London, United Kingdom
[email protected]; Royal Bank of Canada Investment Management (UK) Ltd.
Jay Roberts – Hong Kong, China
[email protected]; RBC Dominion Securities Inc.
D I S C LO S U R E S A N D D I S C L A I M E R
Analyst Certification
All of the views expressed in this report accurately reflect the personal views of the
responsible analyst(s) about any and all of the subject securities or issuers. No
part of the compensation of the responsible analyst(s) named herein is, or will be,
directly or indirectly, related to the specific recommendations or views expressed by
the responsible analyst(s) in this report.
Important Disclosures
In the U.S., RBC Wealth Management operates as a division of RBC Capital Markets,
LLC. In Canada, RBC Wealth Management includes, without limitation, RBC
Dominion Securities Inc., which is a foreign affiliate of RBC Capital Markets, LLC.
This report has been prepared by RBC Capital Markets, LLC. which is an indirect
wholly-owned subsidiary of the Royal Bank of Canada and, as such, is a related
issuer of Royal Bank of Canada.
Non-U.S. Analyst Disclosure: Alana Awad, Patrick McAllister, and Jay Roberts,
employees of RBC Wealth Management USA’s foreign affiliate RBC Dominion
Securities Inc.; and Davide Boglietti and Frédérique Carrier, employees of RBC
Wealth Management USA’s foreign affiliate Royal Bank of Canada Investment
Management (UK) Limited; contributed to the preparation of this publication.
These individuals are not registered with or qualified as research analysts with
the U.S. Financial Industry Regulatory Authority (“FINRA”) and, since they are not
associated persons of RBC Wealth Management, they may not be subject to NASD
Rule 2711 and Incorporated NYSE Rule 472 governing communications with subject
companies, the making of public appearances, and the trading of securities in
accounts held by research analysts.
In the event that this is a compendium report (covers six or more companies), RBC
Wealth Management may choose to provide important disclosure information
by reference. To access current disclosures, clients should refer to http://www.
rbccm.com/GLDisclosure/PublicWeb/DisclosureLookup.aspx?EntityID=2 to view
disclosures regarding RBC Wealth Management and its affiliated firms. Such
information is also available upon request to RBC Wealth Management Publishing,
60 South Sixth St, Minneapolis, MN 55402.
References to a Recommended List in the recommendation history chart may
include one or more recommended lists or model portfolios maintained by RBC
Wealth Management or one of its affiliates. RBC Wealth Management recommended
lists include the Guided Portfolio: Prime Income (RL 6), the Guided Portfolio: Large
Cap (RL 7), the Guided Portfolio: Dividend Growth (RL 8), the Guided Portfolio:
Midcap 111 (RL9), the Guided Portfolio: ADR (RL 10), and the Guided Portfolio:
Global Equity (U.S.) (RL 11). RBC Capital Markets recommended lists include the
Strategy Focus List and the Fundamental Equity Weightings (FEW) portfolios. The
abbreviation ‘RL On’ means the date a security was placed on a Recommended
List. The abbreviation ‘RL Off’ means the date a security was removed from a
Recommended List.
GLOBAL INSIGHT WEEKLY
Rating
Distribution of Ratings - RBC Capital Markets, LLC Equity Research
As of December 31, 2014
Investment Banking Services
Provided During Past 12 Months
Count
Percent
Count
Percent
Buy [Top Pick & Outperform]
Hold [Sector Perform]
Sell [Underperform]
897
686
112
52.92
40.47
6.61
290
137
6
32.33
19.97
5.36
Explanation of RBC Capital Markets, LLC Equity Rating System
An analyst’s “sector” is the universe of companies for which the analyst provides
research coverage. Accordingly, the rating assigned to a particular stock represents
solely the analyst’s view of how that stock will perform over the next 12 months
relative to the analyst’s sector average. Although RBC Capital Markets, LLC ratings of
Top Pick (TP)/Outperform (O), Sector Perform (SP), and Underperform (U) most closely
correspond to Buy, Hold/Neutral and Sell, respectively, the meanings are not the same
because our ratings are determined on a relative basis (as described below).
Ratings:
Top Pick (TP): Represents analyst’s best idea in the sector; expected to provide
significant absolute total return over 12 months with a favorable risk-reward ratio.
Outperform (O): Expected to materially outperform sector average over
12 months.
Sector Perform (SP): Returns expected to be in line with sector average over
12 months.
Underperform (U): Returns expected to be materially below sector average over
12 months.
Risk Rating:
As of March 31, 2013, RBC Capital Markets, LLC suspends its Average and Above
Average risk ratings. The Speculative risk rating reflects a security’s lower level of
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financial and/or stock price volatility.
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Research Resources
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The information contained in this report has been compiled by RBC Wealth
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Past performance is not indicative of future performance.
Copyright © RBC Capital Markets, LLC 2015 - Member NYSE/FINRA/SIPC
Copyright © RBC Dominion Securities Inc. 2015 - Member CIPF
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Copyright © Royal Bank of Canada 2015
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