Cutting Through the Noise
January 14, 2014
JP Morgan Chase reported its earnings yesterday. The company had a good quarter (US$5.3 billion), although it was down a little from last year due to charges related to legal and regulatory settlements. The Financial Times reported that JPM, "took another ...
Read MoreJanuary 10, 2014
The Canadian economy is a real conundrum to me. Clink - Real estate sales have returned to previously robust levels and prices have recovered nicely from the lull in 2012 (if you can call it that). Clink - Canadians bought 1.7 million new cars last year, which ...
Read MoreJanuary 9, 2014
If 2013 was a great year for the markets, it was a stupendous year for pensions. Aon Hewitt published a report last week that shows the progress pension funds made in 2013 in resolving their funding issues. “The latest quarterly survey of more than 275 Aon Hewitt administered pension plans from the public, semi-public and private sectors ...
Read MoreJanuary 3, 2014
Bill Gross doesn’t need my help. The PIMCO Founder and Co-Chief Investment Officer is the undisputed bond king. He oversees a $2 trillion company and has been right many more times than he’s been wrong. But an article in today’s Financial Times on the ...
Read MoreDecember 23, 2013
We hear it all the time in conversation with our partners and friends: “They say the market is going higher … they say Regina house prices are going down next year … or they say the Canucks have a shot at the Cup.” When you hear “they say”, it’s a signal that ...
Read MoreDecember 13, 2013
A long stock market run goes through many phases. There’s a healthy debate going on right now as to where this one is at – does it have further to go, or is it over? In assessing where we are, it’s useful to look back at how things unfolded over the last four and a ...
Read MoreDecember 12, 2013
With the release of Malcolm Gladwell’s new book, David and Goliath, there’s been lots of talk about big versus small. In the Money Managers edition of Benefits and Pensions Monitor, Jeff Brown wrote an article pointing out that in the asset management business ...
Read MoreDecember 9, 2013
We had a meeting last week to kick start preparations for our winter client tour, ‘Where to from here’. The discussion came around to performance reporting. When we start the tour in Winnipeg on January 27th, the 5-year returns will no longer include 2008 and...
Read MoreDecember 3, 2013
In this space, we talk often about how sensitive the housing market is to interest rates. In Tara Perkins’ article on real estate in the Report on Business the other week, there was a story about a young woman who was buying her first home. It was very revealing...
Read MoreNovember 26, 2013
There was a telling chart in last weekend’s Wall Street Journal. It showed the market predictions of Wall Street strategists for each year going back to 2000. The chart shows no discernable pattern or trend that would imply that the predictions are in any way useful. There...
Read MoreNovember 20, 2013
By 2016, mutual fund firms and investment dealers will be required to tell their clients what they’re paying and how they’re doing. Our country’s provincial regulators have also initiated discussions as to whether investment advisors should be held to a higher...
Read MoreNovember 14, 2013
Over the last year or so, there’s been a growing trend towards combining indexing with paid advice. It’s coming up more in the media, and is a common solution in the financial advice columns – ‘hire an advisor to manage an ETF portfolio’. The well-followed...
Read MoreNovember 12, 2013
“In the 1960s and 1970s, mid-western American states fell victim to scores of wildfires. Constant interventions by the US Forest Service appeared to have little positive impact – if anything, the problems seemed to worsen. Over time, foresters came to appreciate...
Read MoreNovember 11, 2013
What now? Stock markets have been on a roll and investors who’ve been leery about owning stocks are now wading back into the risk pool. With good returns comes confidence. In the face of this better vibe, it’s important that investors don’t stray from...
Read MoreOctober 31, 2013
It’s been a dramatic year in the capital markets. Interest rates moved up meaningfully in the spring and stocks have been on a roll all year. Indeed, U.S. and international stocks have been going up steadily for two years. Enough has happened that it’s time...
Read MoreOctober 29, 2013
I had a nightmare last night. I dreamed that I was on the board of JP Morgan. It was no fun. For those of you who aren’t familiar, JPM is a huge multinational bank. For decades, it was revered as one of the leading institutions in the world, but it’s now in high...
Read MoreOctober 25, 2013
Sports broadcasts usually start with the color commentator providing viewers with the ‘Keys to the Game’. For the Maple Leafs, it might be: (1) contain Crosby, (2) pound the Penguins’ defense and (3) pray. I don’t watch enough sports to be definitive on...
Read MoreOctober 18, 2013
A lot of the writing Scott and I do is aimed at breaking down common perceptions about economics and investing that are out of date or inaccurate. On that note, my friend Bing Monahan sent me an article from The Atlantic that outlines 10 economic trends...
Read MoreOctober 16, 2013
While the Republicans and Democrats are duking it out in Washington over the debt ceiling, it’s ironic that the Congressional Budget Office is unable to report the fiscal year-end budget numbers (it’s not deemed an essential service and is shut down...
Read MoreOctober 4, 2013
Let’s pretend it’s two years ago and we’re having coffee. I ask you to predict how your stock portfolio will do over the next two years, but there’s a twist. I have divine insight and can tell you in advance what September, 2013, will look like. As it happens, we're...
Read MoreOctober 2, 2013
Toronto Stock Exchange runs print ads every six months to celebrate/welcome their new listings. I find it informative to see the mix of businesses that are going public. Certainly, it’s changed significantly from the early days of my career. This month’s...
Read MoreSeptember 27, 2013
This week I’ve been seeing and hearing ads from the Federal government defending their cell phone policies. The ads are in response to the telecom industry’s active campaign to discredit those policies. Seeing my tax dollars used to debate policy with a self...
Read MoreSeptember 26, 2013
We think it’s important to check in periodically with our clients to ensure we are on the right track. Recently, we surveyed about half of them to get their feedback. We thank everyone who took a few minutes to participate. The results are overwhelmingly...
Read MoreSeptember 24, 2013
It’s the 20th anniversary of REITs (Real Estate Investment Trusts) in Canada. In the Report on Business today, Tara Perkins goes through their history, from being a accidental solution to a “disaster” to a thriving part of our capital markets today. It’s...
Read MoreSeptember 23, 2013
Bob Farrell is a legendary Wall Street figure. He was Chief Market Strategist at Merrill Lynch for 25 years. One of the things he is well known for is his '10 Market Rules to Remember'. They’re well worth remembering.
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