June 2018 – Canadian Conglomerates – Buy some, avoid others – Conglomerates appeal to some long-term investors because of their diversified holdings. Some having holdings that are so different that they act like a diversified mutual fund or ETF (only without the fees and often with a management team holding significant skin in the game) – BUT, that doesn’t mean that all conglomerates are worthy of being held. Let’s have a look…
April 2018 – The US Dollar – A Possible Hedge – Loons fly north from their southern retreats as Spring approaches. So too do Canadian retirees known as “snowbirds”. The Canadian dollar, affectionately known as the “loonie”, follows that same desire to fly north as the weather begins to warm.
March 2018 – As the Stocks Rotate, Follow the Money – The market cannot continue to push high-growth stocks up in a straight line. Something has to give sooner or later. Money may rotate out of some of these high flyers into value stocks, and/or overlooked sectors, such as the US Banks, Energy and WTIC crude oil, Gold, and Consumer Staples.
December 2017 – The months ahead? What looks good – Markets tend to be strong in the final month of the year. The tendency is for the year’s big movers to continue to lead until the end of December, while the laggards continue to sell off due to tax loss selling and other reasons.
November 2017 – Whither the Loonie? To Rally – Or Not? – I noted in my blog quite some time ago that I had an initial target of 0.80 – 0.81, with a maximum upside of 0.84 for the loonie. That is pretty much what we got, with the loonie reaching a high of 0.83 in September. Since then, as predicted, the loonie has been moving back into its longer-term dominant trend.
September 2017 – The Right Approach – Whether you manage your own money or use a portfolio manager, stay with the active approach. It’s worth the safety – should the market turn ugly.
July 2017 – The Right Strategy? “Diversify”, He Wrote – It is imprudent to hold a Canada-only stock portfolio and expect to earn a respectable risk-adjusted return. There is just too much concentration within the TSX in resources and financials…
June 2017 – Market Rotation: Hero to Zero – Over the past few years I’ve referred to the market as a “stealth” market. That is, one that sees money rotate from winning stocks into depressed stocks, and vice-versa. Rotation from sector to sector is also becoming faster and more pronounced of late. It is for this reason that I believe in truly active management of your portfolio…
April 2017 – Income and Growth: Four Keepers – Investors become so fixated on chasing a higher return that they don’t think about the increased risk to their portfolio that’s inherent in doing this.
March 2017 – Oil and Gas Strategy – Oil tends to be a good trade between February and May – from a seasonal perspective.
January 2017 – Caveat emptor in the…Short Term – Normal seasonal tendencies are for markets to get a bit choppy from mid-January in through much of February.
December, 2016 – Holding and Folding – …a blanket “Buy and Hold” at-all-costs mentality is actually a riskier and costlier investment strategy than a carefully planned system of buying and selling assets.
November, 2016 – Debt Will Affect You – Too much debt will drag you down, know how much you can afford.
September, 2016 – US Equities? All Eyes on USD – A rally by the USD against world currencies will put downward pressure on our loonie, potentially amplifying the upside of holding some US denominated securities.
July 2016 – Enjoy the Music – Watch the Trend – Greater than average chance for volatility before winter: Seasonality, Presidential Cycle, and Sentiment.
June 2016 – A summer strategy – Risk and reward continuously lurk about in the markets. Just because markets, or a sector, are statistically skewed towards more risk over the summer does not imply that you will always lose money if you invest during that time period. Further, lower beta stocks may end up underperforming during the summer, despite their historic tendency to outperform in that timeframe.
April 2016 – The bear is growling…sell growth, buy defence – At ValueTrend, we’ve held a defensive stance through the first quarter of this year. Yes, me missed out on some upside as markets rallied in February and March. However, there is reason behind our madness. Allow me to point out some indicators that encourage a defensive position. Some are technical (crowd and price behavior) indicators, some are fundamental (valuation and economic).
March 2016 – Bear market strategies – shorting the market with ETFs, stocks, currencies, and gold – Breakouts need a catalyst – in either direction. I cannot see a positive catalyst to push the markets up from this point. Eventually, a bottom in oil may become that bullish catalyst. Further evidence of basing in oil is necessary before confirming that potential. Given this bearish outlook, rallies should be sold, unless you have enough fortitude to withstand what could be a strong correction before the next bull phase.
January 2016 – Bad news bears holding sway – it would appear that the summer lows for the US markets at around 1870 will be retested fairly soon. I would think that this level will support stocks – or at least offer some near-termed support for a bounce. If they don’t hold, it will be ugly for markets across the world.