Cutting Through the Noise
August 15, 2011
I came across a commentary in the Financial Times this week on the downgrade of U.S. government debt by the rating agency Standard and Poor’s. I highlight it because there’s a hate-on for the U.S. and we know all its warts. In arguing that S&P got it wrong...
Read MoreAugust 10, 2011
What are the stock market declines telling us (other than we’re temporarily poorer)? Are they signaling the end of the world as we know it or, as a veteran value manager suggested to me yesterday, are we entering “opportunity-laden times?” In my view...
Read MoreAugust 6, 2011
“Hey Tom, how was your holiday? The weather’s been great – skiing conditions must have been calm?” “Oh Ralphie, it was amazing. Two weeks of Crystal Lake at its best. I’m totally decompressed. But what about you man? You’re looking pretty ragged...
Read MoreAugust 5, 2011
The Grip, which is our tool for expressing our overall portfolio strategy, was a new feature in the June Quarterly Report, but the cautious stance it signaled was not. Since January, we’ve recommended that clients be positioned conservatively and where...
Read MoreAugust 4, 2011
Meet Bruce. He shares several traits of investors who we deal with every day. In many ways, he is representative of a typical Steadyhand client. In this blog series, we’ll follow his investing journey and provide periodic updates on the decisions and challenges he faces. Bruce is a married forty-something software engineer with two pre-teen kids. His wife, Courtney, works part-time in marketing and the couple makes a combined annual income of approx. $180,000. They own a house in North Vancouver worth roughly $750,000 ...
Read MoreJuly 27, 2011
I was reviewing a new client’s portfolio last week and I stumbled across the Manulife Simplicity Balanced Portfolio. It’s a fund-of-funds product, meaning it holds a basket of mutual funds. In this case, the Portfolio holds 18 funds (as of December 31, 2010)...
Read MoreJuly 23, 2011
I recently spoke at a conference about the future of the wealth management industry. It was a good audience, but a bad gig. No matter what I said, I was sure to be wrong about some things. As Yogi Berra said, "It1s tough to make predictions, especially...
Read MoreJuly 20, 2011
At Steadyhand, we think we’ve got the best business model and investment philosophy around. We offer investors access to talented and experienced investment managers (who are typically only available to the ultra-wealthy) and straight advice. We invest alongside our clients, charge low fees and provide timely &...
Read MoreJuly 18, 2011
My last Globe column (Of Cash and Quality Stocks) prompted a reader to ask, “Do you believe Canadian Banks will be able to grow their dividends at a healthy clip going forward? Is the growth of the Canadian Banks over?” In the past, I've underestimated...
Read MoreJuly 14, 2011
In a post last week, Larry Swedroe wrote about one of our favourite topics – the behavioral gap. I’m referring of course to investor behavior, not child rearing or post-Stanley Cup rioting. In an investment context, the term refers to the gap in returns between mutual funds and the investors that buy them. In study after study...
Read MoreJuly 12, 2011
It was a skittish quarter for stocks. The Canadian market had a rough spring, as commodity-related stocks gave back some of their gains from earlier in the year. The U.S. and Japanese markets were largely unchanged, while Europe was mixed. Bonds, on the other hand, had a strong quarter, as investors embraced safety and yields...
Read MoreJuly 8, 2011
Are you confused? I certainly am. It’s not clear whether investors are on a risk-taking binge, or are battening down the hatches for another market decline. There is plenty of evidence in support of the risk binge. Technology IPOs are coming out at exotic...
Read MoreJune 28, 2011
Canadian Couch Potato posted an interesting blog yesterday. Dan Bortolotti, the author of this highly-rated blog (in a recent Globe and Mail contest, it was voted the best investing blog in Canada), thinks we need to stop fighting about which is better...
Read MoreJune 24, 2011
We’ve had low interest rates for years, and really low rates for almost three. We’re used to them, and may even be getting complacent. I had more questions and concerns from clients about rising interest rates a year or two ago than I do now. Well, I’m here to...
Read MoreJune 22, 2011
Fund (as in mutual) has become a dirty word. I was reminded of this the other day when Tom was lamenting over all the negative connotations associated with mutual funds. What was once a beautiful concept – investors pooling their money in a shared vision...
Read MoreJune 20, 2011
In his June 6th letter, Tim Price of PFP Wealth Management in the UK provides a thoughtful take on our debt burden. “From a narrowly financial perspective, government debt is an asset class, albeit an asset class now offering vast potential for capital...
Read MoreJune 16, 2011
June 14, 2011
When I was an analyst on the brokerage side of the business (1980’s ... I was a teenager), there were a few iconic people that we all looked up to. Hugh Brown, who was with Burns Fry (now part of BMO), was one such person. He was the guy on...
Read MoreJune 13, 2011
Our Global Equity Fund has had a poor stretch of performance since early 2010. The fund’s manager, Edinburgh Partners Limited (EPL), is the first to admit this. While they don’t manage the fund with a close eye on what the index is doing, any sustained period of under-performance...
Read MoreJune 10, 2011
We heard this week that Vanguard, the giant U.S. asset manager, is coming to Canada. As a permanent student of the business, I’ve been fascinated by Vanguard for many years. It’s an example of a company that grew through word of mouth. It went viral...
Read MoreJune 8, 2011
A 7-game playoff series is a unique animal. It’s a roller coaster ride with potential mood swings after each game. It reminds me a lot of investing actually. As I sit here with my Canucks jersey on, I feel like the boring realist. I’ve celebrated each victory and got pissed off after each loss, but in between, I've refused to get too caught up in the hyperbole. I've found myself in a few conversations that go...
Read MoreMay 31, 2011
I learned last week that the HealthShares Dermatology and Wound Care ETF has been shut down. A shame, really. Seemed like a solid backbone for a portfolio. Investors who like their ETFs sharp and narrow need not fret, however, as the Direxion Daily Daily Agribusiness Bear 3X Shares ETF is still around (for the time...
Read MoreMay 27, 2011
“What I find of particular interest is the speed at which changes in communication technology are happening. It’s causing a great intergenerational knowledge gap, which is rather worrisome because many decision makers are still part of my old-fart...
Read MoreMay 19, 2011
In Connor, Clark & Lunn’s latest outlook, they assess the recent pullback in commodity prices. After a sharp run-up that began in early 2009, many commodities have been in retreat recently. Silver has grabbed the headlines, falling over 30% since late April, but...
Read MoreMay 13, 2011
Personal disclosure: I’m a dyed-in-the-wool active manager, but admit to having used exchange-traded funds in my portfolio. I’ve tread on the dark side for tax planning purposes and, occasionally, to hedge certain long-term positions. I also must...
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