Cutting Through the Noise
July 3, 2013
“I long ago concluded that regression to the mean is the most powerful law in financial physics.” ... “Approximately 99% of the time, the single most important thing investors should do is absolutely nothing.” ... “This time is never different.” In an article last...
Read MoreJune 27, 2013
Along with his Steadyhand assets, Bruce has an RESP and small Investment Account with a discount broker. He takes an aggressive approach with the latter by holding a few small technology companies (recall that he works in the industry), knowing that it’s a minor part of his portfolio and he can afford to take a few flyers. Bruce likes to roll the dice in this account, well aware that they could come up craps more often than not. One of his bets recently paid off, however. Bruce...
Read MoreJune 25, 2013
Google Reader, the popular RSS application that allows you to subscribe to and read blogs, is calling it quits. The service will be shut down on July 1st. Google cited “declining usage” as the main reason why it’s being turfed. If you’re like me and are a fan of...
Read MoreJune 24, 2013
Over the last couple of weeks, the markets have been in retreat and the headlines have turned decidedly negative (the latter due to the former). Investors are nervous about what is going to happen next. My response? Don’t let the recent mayhem put you off track...
Read MoreJune 17, 2013
June 13, 2013
In the previous two posts, I put my perspective on the current news around the Canadian housing market and reviewed the valuation measures. Mercifully, in this final one, I want to talk about what REALLY worries me. My biggest concerns are what I’ve already...
Read MoreJune 12, 2013
In this, the 2nd of 3 posts on the Canadian housing market, I address valuation. Near-zero interest rates are absolutely driving this market. The problem is, low rates are transient, while purchase prices live on forever. In today’s terms, transient means that it’s...
Read MoreJune 11, 2013
We’ve had a cautious view on government bonds for several quarters, as yields are unsustainably low. Our current thinking hasn’t changed. We feel bonds are expensive and have been advising clients to keep them to a minimum in relation to their long-term asset mix. The yield on 10-year Government of Canada bonds has risen over the last six weeks, from under 1.7% in early May to 2.2% yesterday. This is a sharp...
Read MoreJune 11, 2013
Over the last couple of years, I’ve been writing about housing because it’s a big part of our clients’ net worth, it's great fodder for a devoted student of market cycles and ... it’s just so darned interesting. In the first of three posts this week, I’ll try to bring some...
Read MoreJune 7, 2013
In his June Investment Outlook, PIMCO’s Bill Gross says that the Quantitative Easing policy (QE) of the U.S. Federal Reserve hasn’t worked. He points out that over the last 5 years there hasn’t been a 12-month period when the economy has grown faster than...
Read MoreJune 6, 2013
It’s confirmed. We have the healthiest banks in the world. They’ve all reported their second quarter earnings and the numbers are spectacular. Industry leader RBC had a return on equity of 19%, while CIBC and National Bank were over 20%. Yes, 20% in a...
Read MoreJune 4, 2013
It’s spot prawn season on the west coast. The boats are pulling into Granville Island daily (mere blocks from Steadyhand headquarters) and selling their bounty directly to the public. It’s awesome. They’re live, fresh, sweet and local. And you buy them right from the boat. There’s no middlemen. No commissions. No administrative fees. No packaging charges. No transaction costs. For $12-15 a pound, you...
Read MoreMay 30, 2013
Last year we blogged about bank CEO’s compensation (Can I Join the Club?). We took issue with the fact that they all made about the same last year, despite the fact that the performance and positioning of their respective banks were quite different. We...
Read MoreMay 28, 2013
On June 7th in Toronto, the Ontario Securities Commission (OSC) is hosting a roundtable on mutual fund fees. It is open to the public and will follow the agenda outlined in this invitation. We have been a regular contributor on the topic of fees and recently made...
Read MoreMay 27, 2013
Lately I’ve been part of too many conversations that go like this. What brings you to Steadyhand? “I haven’t been happy with my existing advisor. The returns have been lousy and the service has fallen off to the point where I never hear from him." Do you...
Read MoreMay 24, 2013
Should you rent or buy? There are all kinds of reasons to buy a home – making it your own, establishing roots in the community, good schools, basketball hoop on the driveway – and they should be at the top of the list. From a financial perspective, however...
Read MoreMay 23, 2013
Prepare for extremes. This is an essential element to being a better investor, and is particularly topical on a day when the Japanese market is down 7%. Tom expanded on the five essential elements to being a better investor on BNN this morning. You can...
Read MoreMay 21, 2013
May 13, 2013
"Should I get out of the market?" I'm finding this question is coming up again, prompted either by the Dow hitting all-time highs or the central bankers' perilous high wire act (performed without a net). It depends on the week. But, while we know all...
Read MoreMay 6, 2013
In Saturday’s Report on Business, there was a remarkable table embedded in Rob Carrick’s article (How to Shelter Your Portfolio from a Housing Decline). It showed the top 10 Canadian equity funds (by assets) and the top 10 Canadian dividend income...
Read MoreMay 3, 2013
I thought a recent report from Mawer Investment Management captured well the opportunity, challenges and complexity of investing in the Asian markets. A paragraph from the conclusion summarizes their balanced optimism. Overall, we find ourselves...
Read MoreApril 30, 2013
We are currently seeking candidates for a permanent, full-time Investor Specialist. As part of this diverse role, the team member will work directly with clients to help them achieve their investment objectives. Direct industry experience is a requirement...
Read MoreApril 29, 2013
Lori and I attended a Celebration of Life for Art Phillips last Friday. (There was a wonderful obituary in the Globe and Mail last week.) Art founded Phillips, Hager & North in 1965 with the help of Bob Hager and Rudy North. It was Art’s reputation and wallet that got...
Read MoreApril 26, 2013
I’m pleased to introduce our newest member of the Steadyhand team, Jennifer Lacuesta. Jennifer is taking on the role of Client Service Administrator. She has close to 10 years of industry experience, having worked at Deutsche Bank (in the Philippines), GrowthWorks, and Haywood Securities. Jennifer will be playing an important role in many of our client service and trading functions, from processing...
Read MoreApril 25, 2013
My last post on gold spoke to the impact of investor sentiment on security prices. In the case of the shiny metal, sentiment is everything. As for other securities, such as bonds and stocks, it’s a secondary factor - economic fundamentals (profits)...
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