“Direct-to-Market Access” is Here! Learn how you ... - TD Waterhouse

NEWS
TD WATERHOUSE INVESTOR SERVICES
N O V E M B E R 2 0 0 0
“Direct-to-Market Access”
is Here! Learn how you may
be able to execute your
trades faster
Value Investing Versus
Growth Investing
WebBroker Select –
Real-time, streaming
financial data
www.tdwaterhouse.ca

2
“Direct-to-Market Access” is Here!
Learn how you may be able to execute your trades faster
Did you know, that until recently, all
Canadian discount brokers, including TD
Waterhouse, were required to review each
trade order before forwarding them to
the appropriate market?
When discount brokerage services were
introduced approximately 16 years ago,
securities regulators applied existing
regulations that required the review of all
trades before order entry. However, this
“suitability” review meant that each order
had to be interrupted and analyzed by the
brokerage service to determine whether
it matched or was consistent with the
client’s stated investment objectives.
For example, say a client wanted to buy
a volatile tech stock, but stated in their
account application, (on file with
TD Waterhouse) that their investment
objectives were income and low risk.
Since the order presented falls outside of
these parameters, a TD Waterhouse
Representative would be required to contact
the client to discuss their investment
profile before entering the order.
With today’s fast-paced markets and
higher trading volumes, this suitability
review process often leads to significant
delays in order execution.
Thanks to a wealth of educational and
on-line research services available from
TD Waterhouse and other industry
sources, investors today are far more
knowledgeable. In fact, TD Waterhouse
has led the way in providing these
services, offering our clients more
than 1,000 investment seminars each
year across Canada, access to an
unparalleled selection of online
investment research and resources,
and the opportunity to consult with
expert Investment Specialists.
As a result, many TD Waterhouse clients
are now better equipped to make informed
and timely investment decisions and,
therefore, want their trades executed as
quickly as possible.
On behalf of our clients, TD Waterhouse
spent considerable time and effort
lobbying the securities industry to permit
elimination of this extensive manual
review process. We believe this will
better serve the needs of today’s
Canadian investors.
These efforts have paid off, and we are
pleased to report that recent regulatory
changes now permit approved firms, such
as TD Waterhouse, that do not offer advice
to self-directed investors, to process orders
without this suitability review.
These new regulations pave the way for
TD Waterhouse to offer you an enhanced
service that will give you more immediate
access to the markets, making it possible
to execute your trades faster –
particularly if you use any of our
Electronic Brokerage Services such as
TD Waterhouse WebBroker8.
This enhanced service from
TD Waterhouse, called Direct-to-
Market Access, is available to you,
effective Monday, November 27, 2000,
providing you choose to accept the
change in the way we process your orders.
Benefits of Direct-to-Market Access
At TD Waterhouse, we believe that rapid
and efficient access to fast-moving
securities markets is one of the most
valuable services we can provide to selfdirected
investors. However, suitability
reviews can takeup valuable time,
especially during peak trading periods.
When you opt for Direct-to-Market
Access, a suitability review is not
required for eligible trades, so your order
can be forwarded directly to the stock
exchange floor for execution. Not only
will this mean your order may be filled
faster, it may also result in your
obtaining a better price for a stock you
buy or sell, since share prices in today’s
high-energy markets fluctuate both
frequently and rapidly.
The decision is entirely yours
It’s important to note that the decision on
whether to change the way your orders
are processed is completely up to you:
It’s also important to be aware that the
change to Direct-to-Market Access is not
done automatically. Securities regulators
require that you agree to take full
responsibility for your trading activity
before TD Waterhouse can apply this
change to your trade orders.
In addition, not all trades are eligible for
Direct-to-Market access and there are
certain circumstances in which a trade
could still be reviewed by a TD Waterhouse
Investment Representative (i.e. credit or
margin-related issues, over-limits, ensuring
compliance with exchange policies).
• If you would like to take advantage of
the benefits available through our
Direct-to-Market Access service, you
can choose from one of three
convenient options. (See below.)
• However, if you would prefer not to
change the way your orders are processed,
you can decline the acknowledgment
and your trades will continue to be
reviewed against your stated
investment objectives and risk level.
Here’s how to let us know
You will be notified through a mail
campaign that begins with active
electronic brokerage service (EBS)
users. (That is clients who regularily use
WebBroker, TalkBroker ▲ , Wireless or
TeleMax 8 to execute trades.) Clients
trading through an Investment
Representative will be contacted over
the next few months. If you would like
to select Direct-to-Market Access service
for your trading, you can choose any of
the following options to make the change:
1. In the mailing you will be provided
with a personal password. Armed with
this password, simply call the
TD Waterhouse Interactive Voice
Response System at 1-866-440-7681,
listen to the statement (reproduced
below) and indicate your acceptance.
Your response will be recorded and
the change to Direct-to-Market
processing will be activated within
one business day.
2. Alternatively, if you use our electronic
brokerage services (WebBroker,
TalkBroker, Wireless and/or TeleMax),
the easiest way to obtain Direct-to-
Market access is by logging on to the
electronic brokerage service you
currently use. (There is no need for a
special password.) Read or listen to
the message (reproduced below),
which explains the change in service,
and indicate your acceptance.

3. You may also contact any of our
1,200 Investment Representatives to
indicate your preference. Your
selection of Direct-To-Market will
be reflected in your account status
the next day.
Whether you contact us by phone or
on-line, you’ll be asked to acknowledge
this message:
“I acknowledge that TD Waterhouse
does not give me investment advice or
recommendations and does not accept
any responsibility to advise me on the
suitability of any of my investment
decisions or transactions. I acknowledge
that I am responsible for the financial
impact of my investment decisions.”
In addition, your acknowledgment
includes your agreement with the
following statement:
“I understand all transactions made for
my account will be subject to the rules
governing the exchanges or markets and
clearing houses (if any) where the orders
are executed, and I agree to comply with
these requirements. Orders entered by
me may be sent directly to the exchange
or market without prior review by
TD Waterhouse. However, TD Waterhouse
reserves the right to review any of my
trades prior to entry to the exchange
or market. I understand that
TD Waterhouse has the right to reject,
change or remove any order entered
by me or to cancel any trade resulting
from an order entered by me.”
If you agree with these statements and
acknowledge your acceptance of this
change in processing your orders, your
future eligible orders will be processed
on a Direct-to-Market basis (effective
November 27, 2000.) It’s that simple!
Direct-to-Market access is yet another
example of how TD Waterhouse
continually provides you with the tools
and support to be the best investor you
can be and achieve your financial
goals.
If you have not received a letter,
but would like Direct-to-Market
access please contact your
Investment Representative.
If you have questions about this
service, visit our website at
www.tdwaterhouse.ca, contact us, or
visit your local TD Waterhouse office
(1-800-465-5463).
Value Investing Versus Growth Investing
It has been said that there are as many
investment strategies as there are investors.
True enough, but most investment
strategies fall into one of the two broad
categories based on their underlying
philosophy. These categories are Value
Investing and Growth Investing.
Value Investing
Value investing is based on the simple
premise that the cheaper you can buy a
stock, the greater the profit you can
make on it. Consequently, a value
investor concentrates his efforts on
finding stocks that are trading at low
prices measured by various criteria. For
example, stock prices are often related
to the profits of the underlying company
by the Price-to-Earnings Ratio (P/E).
Stocks whose P/Es are low (as compared
to the broad market indices, other stocks
in the same industry, or the past history
of the stock under consideration) are
often called value stocks.
While the logic of value investing (“buy
low, sell high”) appears to be seductively
obvious, the actual performance of most
value investors in the past two decades
has been far from impressive. The key
to their under-performance lies in the
second half of the “magic formula”.
Buying low is easy, but in order to sell
high, the stocks bought at bargain prices
must move up after the purchase. In order
to achieve this result, a value investor
must find the stocks that are cheap now,
but have a compelling reason to become
much more expensive in the future.
Finding such stocks was not so difficult
in the past, when there were many good
companies overlooked by the investing
community. At the present, however, all
listed stocks are screened and analyzed by
a multitude of professional analysts and
investment managers on a regular basis.
As a result, truly great stocks rarely trade at
low prices. Most investors who buy stocks
cheaply, later discover serious fundamental
problems that justified the low stock
price. In our view, this is the reason that
value investing has delivered below
average results in the past two decades.
Growth Investing
A growth investor is not particularly
concerned with P/Es or other yardsticks for
stock prices. Instead, he selects the
companies whose shares have already
exhibited a pattern of strong growth. The
investor then uses various analytical tools
trying to assess the probability that the strong
performance will continue in the future.
As a result, the growth investor usually
pays much higher prices for his shares
(measured by P/Es, etc.) than the value
investor. The philosophy of growth
investing (“buy high, sell higher”) is
supported by the fact that the best stocks,
like the best products in most other fields,
usually command high prices. The only
time the growth investor gets a chance
to buy his favourite stocks at a discount
is after a general market decline.
By paying high prices, the growth
investor leaves himself open to very
high levels of volatility. Disappointing
news and broad declines in stock prices
hurt high-flying stocks much more than
sleepy laggards. This is why value
investors usually shine during stock
market declines, when their portfolios
fall less than those of growth investors.
This fact has led to the belief that an
investor might do well by switching
from growth stocks to value stocks and
back at appropriate times.
Unfortunately, this argument contains a
logical flaw. Profitable switching
requires an accurate forecast of market
declines. But if such forecasting were
possible, one would save more money by
selling all of his stocks before a decline,
rather than switching into value stocks.
In reality, nobody has been able to
consistently forecast stock market moves.
To sum up, value investing is more
appealing than growth investing on an
intuitive level. It also leads to less volatile
portfolios. Yet during periods of economic
expansion, growth investors enjoy better
long-term performance than value investors.
The recommendations and opinions expressed herein
are those of Alexander Gluskin Investments Inc. and
do not neccessarily reflect those of TD Waterhouse
and are not specifically endorsed by TD Waterhouse.
3

F O C U S O N R E S E A R C H
Surveys Rank TD Waterhouse Research #1!!
The results are in – TD Waterhouse is
Canada’s Best Discount Broker. Based
on the 2 nd annual Canadian Business
Magazine discount broker report
card, October 16, 2000, not only is
TD Waterhouse Number One for the
second year running, but best in class
for four out of the six categories:
Here is a recent sample of this award-winning research:
TD Securities Morning email Action Note Highligh –
4
• Online Trading
• Telephone Service
• Mutual Funds & Products
• Research & Value Added Service
Their survey said: “TD Waterhouse
made the first tier [for Online Trading]
because of the ease of navigating the
site – we could get just about anywhere
with just two clicks of a mouse. We
especially liked Waterhouse’s new
eServices feature, which stores and
sends electronic copies of trade
confirmations and statements to customers.”
In their “Research” category, Canadian
Business noted, “On top of free research,
several brokers offer premium reports
for sale through their sites. We bought
a few to see how useful they are. The
best stuff comes from TD Waterhouse,
which actually sells TD’s own analysts’
reports [online], complete with
buy-sell recommendations.”
TD Waterhouse provides access to
TD Securities Inc. research, which offers
concise reports with valuable information,
comparative analysis and key
recommendations. WebBroker clients
have access to individual reports on
Canadian and U.S. companies, Action
List industry reports spanning 18 major
sectors, and daily e-mails of Action
Notes, including upgrades and downgrades.
The complete TD Securities
Subscription Service includes 10
company reports and timely delivery
of a daily e-mail that includes specific
ratings, changes and developments.
The subscriptions can be purchased
for as little as $13.75/month. Sign up
for WebBroker now and receive
1 month of all available research free!
annual interest rates
Effective May 18, 2000 (subject to change without notice)
$CDN $US
TD Bank Prime
lending rate 7.50%
U.S. Prime 9.50%
lending rate
Margin Debit Balances
Direct Trading
All Balances P + 1.0% P + 1.0%

Focus on the
economy
Macro and Micro
Economics – what the
investor should know
Investment decisions involve many types
of choices. Among them is the decision
to invest in a country, a broad economic
sector, a specific industry or an
individual company. Some people invest
in an individual country – quite literally
– by putting their money in a countryspecific
mutual fund. Others invest in
specific sectors or industries through
sector- or industry-specific mutual funds
or through baskets of individual stocks.
And many investors focus on specific
companies. Few investors would make a
country-, sector- or industry-specific
investment without doing some research
on the country, sector or industry. But
even investors who focus solely on
individual companies do some research
on the broader national economic issues
and the forces driving the country in
which the company operates. It is much
more likely for a sector or company to
do well when the country’s economy is
doing well. Regardless of their investing
focus, investors should look at both the
“big” and “small” pictures. That is why
both macro and micro economic analysis
is important for all investors.
Macro economics – the big picture
Macro economics looks at the big
economic picture – at the health and
performance of national economies.
Economic growth, inflation, labour
markets and unemployment,
international trade, interest rates,
currency trends, and broad economic
policies such as monetary and fiscal
policies are all part of the macro
economic picture.
Typical investor questions that macro
economic analysis can answer are:
• How fast is a country’s economy
growing? Is its growth rate at, above,
or below its longer-term cruising
speed? Is growth likely to slow down
or speed up in the near term?
• What is the national rate of inflation?
Indexes: 1996=100
250
200
125
100
”New Economy” Industries –
a micro economic measure
Total Economy –
a marco economic measure
50
50
1996 1997 1998 1999 2000F 2001F 2002F
F: forecast by TD Economics as at October 2000
Source: Statistics Canada, TD Economics
Is it accelerating or slowing down?
• How rapidly is employment
increasing? Is there a high rate of
unemployment, with an accompanying
drain on the country’s unemployment
insurance fund? Or is the
unemployment rate so low that upward
pressure on wages may trigger
inflationary pressures?
• How involved is the country in the
rapidly growing amount of international
trade around the globe? Does it achieve
a balance in its international current
account (trade in goods and services
and flows of interest and dividends in
and out of the country) on average –
every few years, or does it run
persistent surpluses or deficits?
• Is the government budget in balance?
If not, is the government likely to
change its taxation or spending policies
to balance the budget?
• Are its interest rates high or low –
historically, and/or relative to interest
rates in other countries? Are they rising
or falling?
• Is the country’s currency fixed in
relation to another currency, or does it
float? Is it appropriately valued relative
to that of its major trading partner(s)?
If not, how soon is it likely to adjust?
• Does the central bank (e.g. the Bank of
Canada, the U.S. Federal Reserve)
have an inflation target? If current
inflation is outside the target range, is
the central bank likely to adjust shortterm
interest rates to influence the
inflation rate?
Answers to these questions tell an
investor a great deal about the current
performance of a national economy. The
interaction among these various macro
economic variables can help an investor
predict how the economy is likely to
perform in the future. If they are so
inclined, investors can go deeper into
250
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125
100
CANADA’S ECONOMIC GROWTH
Macro and Micro Economics
Peter Drake,
Deputy Chief Economist,
TD Bank Financial Group8 2
macro economic analysis, delving into
areas such as the economy’s demographic
make-up (the age-structure of its
population), or its international
competitiveness (its ability to successfully
sell goods and services in foreign markets).
The latter is especially important in a
world where international trade is
increasing rapidly and is key to most
countries’ economic prosperity. Of course,
macro economic analysis also provides
investors with the knowledge to allocate
their investments among various countries.
Micro economics – focusing on sectors,
industries and companies
Micro economics focuses on individual
parts of the economy – specific sectors,
industries and companies. It concerns
itself with the economic characteristics of
industries and companies – how they
behave toward each other, how they behave
toward their customer, how they are
regulated, what government policies affect
them and what drives their profit growth.
An investor thinking of making an
investment in a particular economic
sector, industry or company could look
to micro economic analysis to help
answer the following questions:
• How many firms are in the industry?
How competitive is the industry? Are
there few enough firms that an individual
company is able to change the prices of
its products without worrying about
what its competition will do?
• Is the industry protected from foreign
competition, or must it compete globally?
• Are companies in the industry free to
set their own prices or must they get
permission from a regulatory body?
• Are companies in the industry free to
enter new markets or must they get
permission from a government or
public agency?
continued on page 8
5

ondcorner
Want Monthly Income? …
Consider MBS
Brought to you by TD Securities8 3
Mortgage-Backed Securities (MBS) are
ideal for investors looking for monthly
income from a safe investment that
provides a competitive rate of return.
What are they?
MBS are fixed rate investments, which
represent an ownership interest in a pool
of mortgages. The monthly payments
they provide to investors represent a
share of the interest and principal
payments generated by these mortgages.
Mortgage-Backed Securities are
guaranteed by the Canadian Mortgage
and Housing Corporation (CMHC), an
agency of the Government of Canada.
This guarantee of timely and complete
payment of both principal and interest
means an MBS carries low risk and has
the same credit rating as Government of
Canada Bonds.
There are two main types of MBS:
1. Open MBS represent ownership in a
pool of residential mortgages
containing prepayment provisions.
Since any prepayments from the
underlying mortgages must be paid to
investors in the next installment, the
monthly income may fluctuate above
the guaranteed monthly payment
amount and the principal amount will
be repaid faster.
2. Closed MBS represent ownership in a
pool of ‘no prepayment option’
mortgages, which then offers a fairly
predictable level of monthly income
and a known maturity date. Investors
looking for monthly income will tend
to invest in Closed MBS because of
the certainty of the cash flows they
will receive.
With a Closed MBS, generally about 4%
to 10% of the principal is repaid to the
investor over the life of the investment,
with the remainder paid at maturity.
Unlike most fixed income investments,
MBS do not simply pay a constant level
of income but rather, a scheduled
blended payment of mostly interest and
some principal that will always be above
a certain minimum amount.
Benefits
MBS are liquid investments and are
actively traded on the secondary market.
Like most fixed income investments, the
market values of MBS fluctuate
inversely with interest rates. However, if
held to maturity, the rate of return on
your original investment is guaranteed.
Fixed Income products are an important
part of a diversified portfolio and can
offer many benefits to match investors’
needs. Traditionally, interest bearing
bonds pay a fixed coupon rate semiannually.
One of the primary benefits of
MBS, however, is the monthly income
stream they generate. This makes it well
suited to provide retirement income,
inside or outside an RRIF or to an
investor seeking monthly cash flows to
manage other financial obligations.
Since the typical Canadian mortgage
term tends to be fairly short, MBS with
investment terms of 10 years and shorter
are most common.
If you are looking for a predictable cash
flow, contact TD Waterhouse to find
out more about our current offerings
of closed MBS’ that might suit your
investment portfolio. Call your local
TD Waterhouse office or one of the
TD Waterhouse Fixed Income Specialists
at 1-888-9TD-BOND (983-2663).
WebBroker Select
Real-time, streaming financial data Access industry-grade information
6
If you’re an extremely active trader, it’s
critical to react quickly to changing
market conditions. Frequently, that
means subscribing to costly financial
news services and charting services to
keep up to date with shifting market
dynamics.
That’s why TD Waterhouse is pleased
to announce the recent introduction of
WebBroker Select, our latest, most
powerful investment resource that
makes it easier – and more costeffective
– than ever to track market
movements and anticipate trends.
Currently available exclusively to our
Platinum President’s Account8 clients,
WebBroker Select gives you free access
to tools and information not previously
available to the average retail investor.
Link to major stock markets across
North America
The central feature of WebBroker Select
is its Dynamic Market Data Portal,
which provides you with a direct
connection to every major stock market
in North America. Through the
Dynamic Market Data Portal, you’ll
receive real-time, streaming financial
data that updates automatically when
information changes. In addition to
quotes and charts, you also receive news
and trade information generated directly
through the market exchanges, giving
you real-time access to Market Depth
and NASDAQ Level II data.
Track up to 250 individual stocks
The primary page you’ll consult when
making investment decisions is called
Tracker. With Tracker, you can
simultaneously view up to 25 stock
symbols per portfolio, in as many as ten
portfolios – providing you with the ability
to track up to 250 individual stocks. By
selecting any one of those individual
symbols, you’ll get instant information
access to the in-depth, real-time market
data associated with that particular
stock. You can even receive customized
information about the top gainers and
losers, as well as house positions, on
the major North American markets of
your choice.
Powerful technical charting tools
WebBroker Select’s powerful technical
charting tools can be customized to suit
continued on page 8

Term Insurance: Fast and Easy Online
What you really need to know
We insure our homes and our cars without
a second thought. But what about your
family’s most valuable assets – you, your
spouse, and your children?
Indeed, Canadians recognize the value of
life insurance – the majority of households
have individual life insurance policies 1 .
This is not surprising given the
availability of flexible, cost-effective
term life insurance policies.
Term insurance is the most widely held
life insurance product in Canada
accounting for almost 60% of the total
life insurance purchased. 1
One of the reasons so many Canadians
choose term life insurance is its
affordability. The premiums are low
because you’re buying pure insurance,
with no costly components tacked-on.
Specific needs
Although these policies are available in
terms ranging from one year to 100
years, the most popular is 10-year term.
It offers great value and is ideal for
safeguarding specific needs. Here are a
few examples.
• Your family’s lifestyle and your
children’s education. With a standalone
term life policy, you can retain
control over your insurance coverage.
The death benefit does not decrease,
N O V E M B E R T R A D E R S’ S N A P S H O T
• Among the top three months of the
year along with December and January
• Also start of the best six months of
the year
• Four great Novembers in a row
• Up 32 times, down 17 on S&P
• Day before and after Thanksgiving Day
combined only 7 losses in 47 years
• Last 14 elections 7 Republican
victories averaged 2.6% gain on
Dow, 7 Democrats, 0.5%
• Largest Dow gains followed wins by
Clinton in 1996 (8.2%) and Reagan in
1980 (7.4%); largest loss 1948 Truman
upsets Dewey
you get to choose the beneficiary, and
the money can be used by your
beneficiary for anything from
burdensome debts and day-to-day
expenses, to music lessons and
university tuition fees.
• An at-home parent. Insuring a stay-athome
partner makes good economic
sense, particularly if you have children.
The replacement costs of child-care and
homemaking services can be significant
and can create additional stress to an
already difficult time.
• Your investment portfolio. If you own
capital property or other non-registered
investments, or don’t have a qualifying
beneficiary for your registered
investments, the tax bill at death could
erode more than half the value of those
assets. Insurance can provide an
immediate, tax-free source of cash to
cover the tax obligations and any other
final expenses.
Buy direct and save with TD Life 2
Ten-year term life insurance is affordable
and flexible. But premiums can vary
widely so it pays to shop around. How
do the major companies compare? You
be the judge.
In many categories of term life,
TD 10-Year Term Life 3 has the lowest
monthly rates. 4
75
70
65
60
55
50
45
40
35
30
25
Probability of the S&P 500 rising on each
trading day in November.
Copyright the Hirsch Organization Inc. 2000.
Published by Yale Hirsch. The Almanac is a
combination market encyclopedia, forecasting
tool and desk diary that pinpoints crucial trends
and dozens of potential profit opportunities
based on proven historical patterns. Excerpt
from the Stock Trader’s Almanac.
70
60
50
40
30
20
$65.93
Empire Life
$61.20
Sun Life
$51.30 $50.18
Imperial Life
Commercial Union Life
$49.05
Great West Life
$41.35
TD Life
10
Monthly Premiums: Male, Age 45, Non-Smoker, $250,000 Policy*
As you’ve come to expect with
TD Waterhouse, TD Life’s 10-Year Term
Life insurance plan offers tremendous
value along with savings and the
convenience of dealing direct. There are
no commissions, no appointments, and
no hassles. You get do-it-yourself
coverage and a team of licensed
specialists ready to assist should you
need advice.
TD 10-Year Term Life is available to
Canadian residents aged 18-70. It is
guaranteed renewable without a medical
exam to age 80. As well, should your
needs change, you can convert it to a
permanent policy without a medical
exam to age 69.
Call 1-888-982-0080 today to speak
with licensed non-commissioned
TD Insurance 8 specialists. 5 They’ll
take your application by phone
conveniently and hassle-free. Or visit
www.tdinsurance.com to get your own
no-obligation quotes from up to 25 life
insurers. You can apply online
anytime and could qualify for
immediate coverage.
1
Life Insurance Marketing Research Association,
2000. 2 Toronto Dominion Life Insurance Company.
3
Underwritten by Toronto Dominion Life Insurance
Company (TD Life). Not available in PEI, New
Brunswick or Quebec. 4 Based on a review of term
life insurance rates available on the Compulife ® life
insurance rate comparison software program
conducted by TD Life for amounts of $100,000 and
above, in September 2000. ® Compulife is a registered
trademark of Compulife Inc. *Position of TD
10-Year Term Life insurance monthly costs versus
Empire Life, Sun Life, Imperial Life, Commercial
Union Life, and Great West Life. Monthly costs
compiled from the Compulife ® life insurance rate
comparison software program as of September 2000.
Coverage to at least age 75, convertible to age 60,
non-preferred risk, guaranteed renewable premiums.
Differences among compared products may exist.
5
Licensed life insurance agents of TD Life.
7

WebBroker Select...
continued from page 6
your needs. In addition to displaying
results in line, ticker, or candlestick
formations, the charting feature allows
you to choose from technical indicators
such as On Balance Volume, RSI, and
MACD, and price indicators such as
Bollinger Bands and Moving Averages.
Results can be displayed for intraday,
or for a period of up to ten years.
Price and news alerts
At TD Waterhouse, we understand the
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Focus on the economy...
continued from page 5
• Are companies in the industry free to
merge with or acquire other companies
in the industry or must they go through
a lengthy review process?
• Is the regulatory climate for the industry
becoming more or less stringent?
• How responsive are labour markets to
changing conditions in specific industries?
Are there adequate education and
training resources for specific skills
needed by specific industries?
• What is the total industrial make-up of
a country? Do the various industries
that exist complement each other?
How is the mix of industries responding
to changes in global demands for
goods and services?
Like macro economic analysis, micro
economic analysis can be quite useful in
making inter-country comparisons of
specific industries. With many firms
expanding their global reach, the microeconomic
environment in each country
where a firm operates can have an
important bearing on the company’s
success and bottom line.
Micro and macro – the full economic toolkit
It should be clear by now that investors
can get the most help from economic
analysis by taking the time to consider
both macro and micro economic issues.
In an ideal world, investors would be
able to confine their investments to
those where both macro and micro
economic factors are favourable. But it
doesn’t always work that way. There can
be situations where a company which
represents an excellent investment
opportunity is operating in a less-thanfavourable
macro economic
environment. Obviously, the investor
needs to do some extra due diligence in
such circumstances, but the investment
may still be worthwhile.
Finding the information on macro and
micro economic issues
Investors can go directly to the various
government agencies to get both macro
and micro economic information. In
Canada, two useful web sites are those
of Statistics Canada (www.statcan.ca)
and Industry Canada
(www.strategis.ic.gc.ca). It is also
helpful to get some analysis to go along
with the statistics. TD Economics’ web
site (www.tdbank.ca/tdeconomics)
contains both macro and micro
economic analysis and forecasts. Nearly
all financial institutions have their own
economic web sites. Non-profit
economic think tanks and forecasting
organizations can also provide useful
information. In Canada, the C.D. Howe
Institute (www.cdhowe.org), the Fraser
Institute (www.fraserinstitute.ca) and the
Conference Board of Canada
(www.conferenceboard.ca) are good
places to start. One of the best sites,
especially for economic information on
other countries, is the Organization of
Economic Cooperation and
Development (OECD) (www.oecd.org).
Each of the country surveys deals
specifically with macro economic
performance and policies and with
(micro economic) structural issues and
policies. Regardless of where you start
surfing, you will find numerous sites to
obtain useful information.
Like almost everything connected with
economic analysis, investors will soon
discover that different economics
organizations express different opinions
or draw differing conclusions from what
appear to be similar data. For this
reason, smart investors take the time to
consider views and opinions from
several sources before drawing their
own conclusions and making their own
investment decisions.
This newsletter is brought to you by TD Waterhouse Investor Services (Canada) Inc. (“TD Waterhouse”). This newsletter is for informational purposes only. Investments should be evaluated relative to each
individual’s investment objectives. TD Waterhouse and the TD Bank and/or its officers, directors, subsidiaries or representatives may hold some of the securities mentioned herein and may from time to time
purchase and/or sell same on the stock market or otherwise. The information contained in this newsletter is not, and should not be
construed as investment advice to any party. All 3rd party products and services referred to or advertised in this newsletter are sold by the
company or organization named. While these products or services may serve as valuable aids to the independent investor, TD Waterhouse
does not specifically endorse any of these products or services. TD Waterhouse makes the 3rd party products and services referred to, or
advertised in this newsletter available as a convenience to its customers only and is not liable for any claims, losses or damages however
arising out of any purchase or use of 3rd party products or services. Some of the products listed are Registered Trademarks and are the
property of their respective holders. TD Waterhouse Investor Services (Canada) Inc. (“TD Waterhouse”) is a subsidiary of TD Waterhouse
Group, Inc., a subsidiary of TD Bank. TD Waterhouse Member - CIPF. † Based on a study published in Canadian Business Magazine,
Oct. 16, 2000. 1 TD Bank is a licensed user of the trademark. 2 The TD Bank Financial Group means The Toronto-Dominion Bank and its
affiliated companies, who provide deposit, investment, securities, trust, insurance and other products or services. 3 TD Securities represents
TD Securities Inc., TD Securities (USA) Inc. and certain investment and corporate banking activities of TD Bank. Copyright 2000 of
TD Bank, all rights reserved. 8 Trade-mark of TD Bank, TD Waterhouse is a licensed user. ▲ Trade-mark of TD Waterhouse.
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