By Scott Ronalds

From our Quarterly Report:

“… It’s not the time to chase yield or return, but rather … it’s about managing risk and making sure the odds are in your favour.”

“I don’t think a 10-20% cash cushion is excessive at a time when we’re going through a grand economic experiment and all my valuation and investor sentiment measures are pointing towards caution.”

Well, haven’t I been a ray of sunshine these last few months! I’ve been waiting for Aunt Judy, my biggest supporter, to call as she did in 2007. She wanted me to be more positive. “Reading your stuff lately is like watching Six Feet Under … Dark!”

Needless to say, I believe we are at a point in the cycle when investors need to be careful. Rather than jumping on the bandwagon, it’s time to stick to the plan and not get too excited about the returns of the last few years.

Read Tom's full brief and the rest of our report here.