Cutting Through the Noise
January 19, 2013
A young client phoned this week to ask if she was invested in mutual funds. She’d heard they were high cost and not the place to be. While the call was a little disconcerting given that we only use our own funds to build client portfolios, it was not surprising. Her...
Read MoreJanuary 17, 2013
My wife dragged me to a spinning class last weekend. It was a humbling event for my quads, hamstrings and calves. They’re still cursing me. Nevertheless, it was an inspiring experience. The lights were low and the music high. Everyone in the room was focused intensely on the instructor’s cues and was content to turn the tension dial to self-inflict a higher level of pain (and gain). I quickly learned...
Read MoreJanuary 15, 2013
We’ve said it many times, but 2012 was another reminder that market returns don’t often match up with what we’re seeing in the headlines. In many respects, the economic news in 2012 was ugly. The U.S. grappled with the fiscal cliff, mounting debt and political bickering. The sovereign debt and unemployment issues is Europe lingered, China was dealing with slowing growth, and weak commodity prices were...
Read MoreJanuary 14, 2013
From our Quarterly Report: In the Q4 brief last year, my goal for our clients was “another unremarkable year”. We had come through a tough period in the markets in good shape, but with interest rates even lower and the economic and political outlook...
Read MoreJanuary 11, 2013
I guess I’m more optimistic than executives at the major banks. When we lose a client (we’ve been lucky so far, our clients have been very loyal), I fully expect she/he will come back one day when circumstances change. As a result, when a client takes money...
Read MoreJanuary 10, 2013
Having been early and loud with my concerns about Canadian housing prices, I’m following with interest the daily coverage of the residential real estate market. I have a few thoughts on what I’ve read so far. Despite all the front page coverage, the...
Read MoreJanuary 7, 2013
We are currently seeking candidates for a permanent, full-time Office Manager/Administrative Assistant. As part of this diverse role the team member will be involved in many facets of our business, including maintaining the office, managing...
Read MoreJanuary 5, 2013
I’m constantly hearing that it’s been a tough few years for money managers. It’s true that the macro-economic situation has brought uncertainty and volatility, and there’s been no such thing as “safe” income. But in one respect, the past couple of years...
Read MoreJanuary 3, 2013
Turns out the world didn’t end in 2012. A good thing, really, as Tom and I had a lot to write about. With over 120 posts, our updates, explanations, advice, observations, opinions, musings, rants and ramblings were well received, despite the odd scathing...
Read MoreDecember 28, 2012
Am I bothered because the budget negotiations in Washington are dragging on and the market is bouncing around more than usual at year-end? No. Am I worried that tax increases and spending cuts will slow the U.S. economy? They will, but no, I'm...
Read MoreDecember 27, 2012
The Investor Education Fund (a non-profit organization funded by the Ontario Securities Commission) has a cool interactive chart on their website that shows the historical returns – from 1935 to 2012 – of various stock markets, bonds and T-Bills, along with...
Read MoreDecember 23, 2012
We’re in the midst of the holiday season, but there’s something about reflecting on the financial markets in 2012 that makes me want to say “bah humbug.” To me, the year was lots of talk – Spain, Facebook, BCE, fiscal cliff, Nexen/CNOOC, Mark Carney...
Read MoreDecember 17, 2012
It’s been another year of troubling economic headlines, slow growth and political stalemate. Yet, unless Santa gets run over by a reindeer, many global stock markets will finish the year with nice gains. Even the bond market, with its naughty yields, has gained ground in 2012. As the year comes to a close, we’re gratified with the strides we’ve made and the returns our clients have achieved. It’s been a productive...
Read MoreDecember 14, 2012
So far in 2012, $10 billion has flowed into Canadian ETFs (net of sales). It's a big number, especially considering it's been a tough market for most wealth management providers. But as I said earlier this year, the growth doesn't blow me away in the context of a...
Read MoreDecember 12, 2012
In a recent Globe column, I highlighted a consensus among money managers that interest rates are unsustainably low - short and mid-term Government of Canada bonds are trading at negative ‘real’ yields (after inflation). The argument goes that at some...
Read MoreDecember 11, 2012
I've just returned from a few days in the U.S. (Denver – clean, friendly, no snow, great music, the Brown Palace Hotel in all its Christmas glory and a Van Gogh exhibit) and have heard and read waaaaaayyyyyy too much about the fiscal cliff. Fortunately, I've come...
Read MoreDecember 8, 2012
My editors want me to at least occasionally write about something topical. At first glance, a column about getting back into the market doesn't appear to fit the bill, but it does. That’s because now is the time to do the groundwork for what is often the most difficult...
Read MoreDecember 4, 2012
There have been a number of articles recently on U.S. homebuilders. There are increasing signs that housing activity is picking up (albeit from near-dormant levels) and the indexes that track stocks related to the industry have doubled over the last year. This sector is a great illustration of how the stock market is always looking forward. When this latest run started last fall, the news on housing (resales, starts...
Read MoreNovember 30, 2012
The year-end distributions for all our funds (with the exception of the Savings Fund) will be declared on December 14th and paid on December 17th. The Savings Fund will pay its regularly-scheduled monthly distribution on December 31st. As a reminder, distributions...
Read MoreNovember 29, 2012
At the annual Morningstar Canadian Investment Awards last night in Toronto, the Steadyhand Income Fund was recognized as the Best Canadian Balanced Fund. We’re a modest bunch at Steadyhand when it comes to awards and recognition, most of the...
Read MoreNovember 28, 2012
Connor, Clark & Lunn, the manager of our Savings Fund and Income Fund, produces an outlook every month on the economy and capital markets. Their recent commentary on Canada is particularly clear, candid, and sobering. CC&L’s views on the US and...
Read MoreNovember 26, 2012
The federal government announced today that the annual contribution limit for the TFSA is being increased from $5,000 to $5,500, starting in 2013. A feature of the TFSA is that the annual contribution limit is indexed to inflation, in $500 increments. 2013 will be...
Read MoreNovember 24, 2012
Until a couple of days ago, there was a leaning tower of paper hovering over my desk. It was a stack of articles, charts, cartoons, quotes and sport stats that I was sure would be important one day, but in the meantime, was threatening my safety. It had...
Read MoreNovember 22, 2012
I saw the new Bond flick, Skyfall, the other day and walked away with a smile on my face, knowing that the British Secret Intelligence Service (also known as MI6) is still well positioned to save the world from evil villains and vixens. Being immersed in this industry for the past decade and a half, I’ve developed a bad habit of relating all things to investing, including 007. When Bond was sipping his famous vodka martini in...
Read MoreNovember 20, 2012
With a decline of more than 200 points Wednesday, Canada's benchmark stock index erased its gain for 2012 and cemented its position as the worst-performing major stock index in North America. Even France's CAC 40 and Italy's Mibtel index are...
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