Blog

Cutting Through the Noise


August 18, 2012

By Tom Bradley

Three (Market) Waves That Can Rock Your Portfolio

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...

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August 3, 2012

By Tom Bradley

Five Essential Elements of a Successful Investing Framework

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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July 22, 2012

By Tom Bradley

The Duffer's Guide to Investing

If you really want to delve into someone’s personality and character, take them golfing. There are few pastimes that are more revealing. Golf takes four to five hours to play, is laden with emotion and is mankind’s greatest equalizer - it humbles...

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July 7, 2012

By Tom Bradley

Funds vs. ETFs: Peeling Away Some of the Myths

There’s one research report in my reading pile I’ve been avoiding, although it eventually worked its way to the top. Vanguard, the giant U.S. mutual-fund company ($1.8-trillion U.S. under management) produces some great research, particularly in the...

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July 6, 2012

By Tom Bradley

Fixed Indeed

Fixed rates indeed.

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June 28, 2012

By Tom Bradley

Profit Margins

There is lots to worry about these days. Rob Arnott, of fundamental indexing fame, talks about the 3D hurricane - debt, deficits and demographics. As part of the hurricane, I’ve been questioning how sustainable U.S. corporate profit margins are, given...

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June 23, 2012

By Tom Bradley

Get Ready: Being Greedy Requires Careful Planning

A greed moment? So here we are. The economic outlook is bleak. Systematic risk is high. Investors are scared. And Warren Buffett’s words are ringing in my ears, “We simply attempt to be fearful when others are greedy and to be greedy only when others...

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June 21, 2012

By Tom Bradley

Strong Getting Stronger(er)

It was announced this week that Yamana Gold is buying Extorre Gold Mines for $395 million. Yamana is one of the power houses in the mining industry, while Extorre is a smaller company that’s struggling to finance and develop a large silver mine in...

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June 15, 2012

By Tom Bradley

Market Support

A friend of mine forwarded me a quote today from Credit Suisse (allegedly) that says it all: "The market is currently like a strapless bra; half of us are wondering what is holding it up and the other half are waiting for it to drop so they can grab the opportunity...

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June 11, 2012

By Tom Bradley

Asset Mix Update

As a follow-up to my last Globe column, which focuses on return expectations, I want to update our guidance to clients on asset mix. I’ll use the Founders Fund as a live example. The fund has a long-term asset mix of 60% stocks and 40% fixed income. (All the...

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June 9, 2012

By Tom Bradley

Equities: The Most Despised Asset is Poised to Surprise

The market had a good run for a while, but now it’s right back to where it was.” “I haven’t made any money in 10 years.” “Whatever it is, I don’t want any more downside.” “I give up.” These statements reflect the sentiment of investors today. The headlines...

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May 28, 2012

By Tom Bradley

Meet Alan

I’m pleased to introduce our newest member to the team, Alan Hamade. Alan is taking on the role of Operations Manager. He has a ton of industry experience, having worked for over 30 years in the business. Most recently, he was the Manager of Securities...

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May 26, 2012

By Tom Bradley

Mispriced Assets: Learning to Live With a Not-so-free Market

‘[T]he market’ is rapidly becoming something of an endangered species. Your mission, should you choose to accept it, is to try and identify any asset of significance that isn’t experiencing huge and artificial distortion to its price by forces that we might...

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May 23, 2012

By Tom Bradley

In Your Face ... book

I find the kerfuffle about the Facebook initial public offering (IPO) interesting. I don’t know if anything nefarious went on behind the scenes, but it seems to me that what played out on this overhyped and highly priced IPO (the $38 issue price equates to over 20x revenue) fell within the range of possible outcomes. Facebook...

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May 17, 2012

By Tom Bradley

Federal Government Gets a Failing Grade on Transparency

In this space, we talk a lot about transparency, and we try our best to walk the talk. There was a piece by Barrie McKenna in the Globe and Mail this week about the Federal government’s transparency around financial reporting. The conclusion: If the...

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May 12, 2012

By Tom Bradley

Covered Call ETFs: Are They for You?

A long-standing investment strategy is back in vogue. “Covered call writing” is designed to generate income from a stock by selling a call option against it (the right to buy the stock at a set price in the future). While the strategy has been around forever...

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May 10, 2012

By Tom Bradley

Finding a Better Balance

In recent presentations, we’ve been discussing a slide that shows the industry diversification of the Founders Fund versus the S&P/TSX Composite Index. We’ve been doing this admittedly ‘apples to oranges’ comparison because it highlights what the portfolios...

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April 30, 2012

By Tom Bradley

Industry Changes - The Next 5 Years

The wealth management industry has changed a lot since we started Steadyhand five years ago. The banks have strengthened their hold on asset management, low-cost ETFs and high-cost structured products have become more prominent (and numerous) and lower-volatility income products are now the big seller. Some of the changes have been good for client returns, while others were more attuned to company profits...

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April 28, 2012

By Tom Bradley

Why the Smart Money is Cutting Back on Bonds

As your buy side correspondent, I make a point of reading a whole stack of investment manager reports each quarter. I particularly focus on managers who think long term (no frequent traders), are prone to non-consensus views and aren't afraid...

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April 25, 2012

By Tom Bradley

Canadian Real Estate - More Reasons for Caution

Last Sunday, while flying to the hottest housing market in Canada (Toronto), my airplane reading surfaced a couple more statistics about Canadian housing, both of which point towards caution. In their quarterly report, Mawer Investment Management noted...

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April 14, 2012

By Tom Bradley

Lessons Learned in the Wealth Management Trenches

We’re celebrating our firm’s fifth birthday this week, which has brought on lots of reflection. Before we started up, I sought counsel from as many people as possible under the theory that if you want money, ask for advice. As it turned out, I got little money...

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April 10, 2012

By Tom Bradley

My Toughest Five Months

“If the bear leans on you, hold your ground.” Are these words of advice from an investment guru like Buffett, Watsa or Hager? No, they’re instructions from the trainer of Koda, my big furry friend who appeared with me in the video on our original home page. As it turned out, the trainer’s words would quickly become as relevant...

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April 4, 2012

By Tom Bradley

Whose Interests?

The investment banking league tables came out this week and they showed that Scotia Capital was at the top of the equity list. BNS was lead underwriter on $2.4 billion worth of deals in the first quarter. What pushed them to the top was a $1.66 billion stock...

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April 1, 2012

By Tom Bradley

A Contrarian's Radar Says Cheez Whiz Yes, China No

I’m wired to be a contrarian. That means I tend to be early getting on and off trends. I was worried about the U.S. housing cycle in 2004 and thought the Rolling Stones were over the hill two decades ago (was I wrong?). I’m still calling for Cheez Whiz to...

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March 27, 2012

By Tom Bradley

Are Bonds the Safe Haven They Appear?

This was the heading on a slide that Connor, Clark & Lunn showed us this morning during our quarterly review of the Income Fund. The chart (below) shows the path of a Government of Canada 10-year bond yield compared to the commonly-used indicator of inflation in Canada, the Consumer Price Index. After 31 years of declining...

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