Commentary
2012
May
Equity markets in the first quarter of 2012 improved more than they have in five years. The Canadian market did well –rising by over 4 percent; the U.S. did even better rising 11.2 percent in U.S. dollars and 9.2 percent when expressed in Canadian currency. Risk gauges such as... Read more »
February
"It was the best of times, it was the worst of times..." Thus begins A Tale of Two Cities, by Charles Dickens, the bicentennial of whose birth we will celebrate next month, and who is the favourite author of our two-time guest speaker, Elliot Engel. While this famous opening sentence refers... Read more »
2011
October
In our view, the decline in equity markets does not reflect the current economic situation. Equity markets seem to be running on fear as the ghost of 2008-2009 still haunts people. Currently interest rates are at their lowest level in over 60 years and inflation does not yet pose a threat. North American equities trade at only... Read more »
August 23
You know that relying on past performance alone to select a fund manager can be misleading. You also intuitively know that fund managers that display certain characteristics – for example, a solid process and sensible philosophy – are more likely to be successful. But are there any specific fund manager attributes that have proven to increase the likelihood of success? Read more »
August
It appears to be almost universally acknowledged that this disruption is caused by the downgrade by Standard & Poor's of US government debt. We think that this is a trivial excuse, not a reason. Read more »
July
The second quarter resulted in a downturn in North American stock markets, most of it in June. What caused the market correction? Should it cause you concern? Where do we go from here? Read more »
May
As the Chinese proverb exhorts, we live in interesting times. As we look at what is going on, we come down on the side of optimism. There are risks to be sure, and they are significant. But there is also great opportunity... Read more »
February
Performance in the stock market is driven by changes in the market’s expectations - not just the underlying corporate and economic performance. Is predicting important? It would be if we could predict the future accurately. There is a better way... Read more »
2010
October
Investment styles are in constant flux. Fear versus greed; safety versus aggressiveness; stocks versus bonds; growth versus value... In this way, the investment world proves the wisdom of Mark Twain’s observation, ”History doesn’t repeat itself, but it does rhyme...” Read more »
August
The companies in your portfolio are generating cash at very strong rates and prospects look even better. However, at June 30, the psychology of the market couldn’t have been worse. When share prices and company values disconnect, there is great opportunity... Read more »
May
From the end of 2009 to May 24, 2010 the Canadian market lost almost 2% and the S&P 500 was down 3.7%... After the precipitous decline of the previous 15 months, the market soared from the bottom on March 9, 2009 and the 9 months following. Has the rally ended? Read more »
January
The last decade was one of the most challenging since the Great Depression, in terms of equity, credit and economic environments. Nevertheless, our 27 years of experience indicates that the best investment opportunities come at the bottom of an economic cycle... Read more »
2009
August
We thought it would be helpful for you to understand how we think about recent events and their impact on the portfolio. This is a global recession and for North American markets, we focus on the U.S. economy, as the Canadian economy has and will follow in lock step... Read more »
May
The present situation offers the opportunity of a lifetime. In the next 2 to 3 years, the stock market averages should rise well over 100% (and we expect to do even better). As always, it won’t be easy; nevertheless, the rewards far outweigh the risks... Read more »
March
This has been the longest and deepest recession since 1946. Nevertheless, the economy will certainly not be as bad as it was in the 1930s, when unemployment hit 25% and GDP fell 20%. Are there any reasons to be positive? We are optimistic... Read more »
