Blog 2018-06-01T19:13:27+00:00

Update to Market Conditions

By | December 19th, 2018|

Falling markets are discouraging and disconcerting. It is natural that investors want to protect their portfolios when it seems like the market is going down on a daily basis. Stock markets are volatile but the pendulum tends not to swing in one direction for too long. At some point, the market will price in all the (perceived) bad news and start to recover. During these turbulent times, the best course of action is to control your emotions and not lose perspective.


By | November 26th, 2018|

After hitting an all-time high on September 21, 2018, the S&P 500 Index (an index containing most of the largest companies in the U.S.) has fallen over 10% and is now showing a slight loss for the year. The American market is not alone. A study by a major bank recently showed that 90% of the 70 different asset classes it measured were in the red for 2018. What’s going on?

Digging into the Valuation Tool Box

By | October 26th, 2018|

Every stock has a price, and while the market is open, we can track it by the second. At the same time, every stock has a value, which might be very different from its price, either higher or lower. The job of the financial analyst is to find those situations where price and value differ, and to buy and sell accordingly.

Oh Canada. Why is your Stock market so bad?

By | October 15th, 2018|

About 8 years ago, on September 30, 2010, the TSX Index closed at 12,369. As I write today it is at 16,217, a gain of 31.1% or 3.44% per year compounded over the period. Add in dividends and the gain per year is around 6%. Not horrible, and certainly better than bonds, which yielded less than 2% over the same time span. However, when we look at the performance of the main U.S. index, the S&P 500, we start to understand how poorly the Canadian stock market has performed.

Don’t be Caught Off-Balance

By | September 13th, 2018|

On Wednesday, August 23, 2018, the S&P 500 set the record for the longest bull market rally in history. A bull market is identified as the consistent rise of a stock index without falling more than 20%. The last time the S&P 500 fell 20% from its high was in 2009—during the worst financial crisis since the Great Depression; some even thought the financial world was going to end.

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