Cutting Through the Noise
December 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 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 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 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...
Read MoreNovember 13, 2012
For keen investors and/or students of the investment industry, I recommend reading a speech (Surviving Success) given this past summer by Richard Rooney, the Chief Investment Officer of Burgundy Asset Management. Richard was speaking to an...
Read MoreNovember 10, 2012
In my last column, I suggested that the stock picker’s lot in life is not as bad as it’s made out to be. I argued that many of the portfolio managers competing in this zero sum game (for every winner, there’s a loser) are destined to underperform for structural reasons...
Read MoreOctober 27, 2012
"Be it resolved that security selection is dead. Macro forces drive portfolio returns.” This was the resolution for the Alternative Investment Management Association’s (AIMA) annual debate. It reflects what I’m increasingly hearing – it’s a tough environment for active...
Read MoreOctober 24, 2012
The Report on Business today published excerpts from an interview with John Bogle, the father of indexing and founder of Vanguard. We found one of his answers on the wealth management industry particularly poignant. “Today, that profession with elements of...
Read MoreOctober 23, 2012
Our Global Equity Fund has had a rough three years. Nonetheless, it’s our view that foreign stocks will be an important contributor to client returns and portfolio diversification in the coming years. In this post, I’ll provide some background on the fund...
Read MoreOctober 13, 2012
"It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” – Mark Twain. As investors, we need to be wary of what we’re absolutely, positively sure about. We may be flat out wrong. Economies, markets and...
Read MoreOctober 2, 2012
In last Saturday’s Report of Business, Rob Carrick wrote an article about low volatility mutual funds (The Hidden Dangers in Playing it Safe). The Steadyhand Equity Fund was one of six funds he highlighted as having a positive return over the last five years...
Read MoreSeptember 29, 2012
Last week in Toronto, I had back-to-back meetings that provided an intriguing juxtaposition. I first met with Joe Sirdevan, the former head of research at Jarislowsky Fraser, who is starting a new firm, Galibier Capital, and then spent some time...
Read MoreSeptember 24, 2012
As we do every year, we’ve updated our figures on co-investment (the practice of investing alongside our clients). We feel there’s no better way to illustrate our commitment to our investment philosophy, approach, and ultimately our clients, than to put our...
Read MoreSeptember 16, 2012
Big changes are in the regulatory winds and they’re going to be good for Canadians. The new rules that are coming down relating to cost disclosure, performance reporting and client statements are likely to have more impact on individual investors...
Read MoreSeptember 10, 2012
While I was cleaning out the cottage last week, I found a few old items that brought back memories. The Clarkson Bantam hockey jacket with the black leather sleeves was a beauty, although it doesn’t seem to fit anymore. Fortunately, neither does the Speedo with the maple leaf pattern. I found a pair of flip flops that were so old they were called thongs. And to my great surprise, my wooden toy box was...
Read MoreSeptember 6, 2012
There was an article by David Berman in the Report on Business yesterday pointing out how bearish Wall Street strategists are these days (Time to Buy as Pros Turn Bearish). As a group, their recommended stock weighting is 44.4%, which is near its lowest level since 1985. This compares to a long-term average of 60-65%. In the...
Read MoreSeptember 1, 2012
Just as the baby boomers brought us free love and rock ’n’ roll, they’re also leading the way into pension-less retirement. Those who are near or just into retirement are in a tough spot. They have a long time time horizon and need investment returns that are...
Read MoreAugust 22, 2012
“Stock rally defies fears of a slumping economy.” That was the title on an article in today’s Report on Business. To me, it’s further evidence of the macro mania that I wrote about in last weekend’s Globe article. Investors are looking at the big picture (Spain...
Read MoreAugust 21, 2012
We try to limit how often we write about fees because we have an axe to grind (is more than 50 times a year too much?), but … David, Chris and I have come across a few situations in the last two weeks that caught our eye. In each case, the investor had a...
Read MoreAugust 18, 2012
After some extended dock time, I’ve been re-engaging in the realities of the capital markets. I put aside my summer reading list and am back on the hard core investment stuff. With the benefit of a fresh set of eyes, three things jumped out at me...
Read MoreAugust 3, 2012
As a young analyst at Richardson Greenshields, I worked with a big guy with an unusual name, Pentti Karkkainen. After years as a highly regarded oil analyst, Pentti now plies his trade in Calgary at KERN Partners, a private equity firm he co-founded. I introduce...
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