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APRIL 2021 Investor Strategy: Another great quarter to be an investor

For the first half of the quarter, market participants facilitated a run of risk-on activity. The final month, however, was characterized by a pumping of the brakes on high-flying names. While the majority of markets still performed well, there has undoubtedly been a
continued divergence in equities between growth & value – more on that later.

Weekly Insights: Value continues its comeback

Perhaps one of the more pressing questions for asset allocators and portfolio managers is whether or not the recent resurgence in value stocks is a true turning point or just a blip in the continued dominance of growth. It’s rare to see one style dominate for so long like growth has, with such a huge acceleration in the trend in 2020. Was 2020 a blow off top for Growth vs Value? Or has the market truly changed?

Canadian Entrepreneur Report 2020: Highlighting The Ten Spot’s Founder Kristen Gale

What does it mean to #FeelLikeATen? The Ten Spot thinks everyone deserves to feel like a ten all the time. it’s all about confidence. A confident woman can do anything: nail her work projects, be a domestic goddess, and look fabulous doing it.

Have you read Echelon Wealth Partners’ Canadian Entrepreneur Report 2020? It’s available here. However, if you are just looking for some quick highlights of each of our interviewed leaders and their companies, these short summaries will give you a weekly dose.

Weekly Insights: Bonds Still Work

The market gyrations of holding 100% equity is simply too great for most and combining some bonds reduced the overall
portfolio volatility. This diversification, of adding various asset classes, is at the heart of modern portfolio theory and how most portfolios have been constructed.

Weekly Insights: This time is different

Those four words are arguably responsible for more loss of capital than any other phrase. While certainly these can be
“dangerous” words when used to cajole the unsuspecting, markets are in fact always changing. They change because the behaviour of market participants changes. Whether the players are central bankers, active portfolio managers or a group of investors influenced by a crowd-sourcing platform, their actions constantly change and that alters how the markets function.

Canadian Entrepreneur Report 2020: Highlighting Three Farmers’ CEO Natasha Vandenhurk

In honour of International Women’s Day 2021, we are highlighting our female entrepreneurs for the month of March. First up is Natasha Vandenhurk, CEO of Three Farmers. Three Farmers believes that everyone should have wholesome food to eat, an understanding of where it comes from, and how it’s made. They are real farmers, committed to preserving the land through sustainable growing practices and providing nourishing foods grown on Saskatchewan family farms.

March 2021 Investor Strategy: The Yields They Are A-Risin’

February’s frothy backdrop was comprised mainly of (1) a successful continuation of COVID-19 vaccination administrations across
the globe; (2) patient and (seemingly) stubborn signalling from the Federal Reserve and other central banks in combination with
newly awoken hopes for additional fiscal stimulus; (3) ever-growing interest in investing from the retail community, as exhibited by
Reddit’s r/wallstreetbets user growth to ~9.3mn (+40% m/m); (4) sustained idiosyncratic pockets of speculative mispricings across a
variety of assets/securities, most notably in thematic highflying equities and cryptocurrencies; and (5) a steady rise in global yields,
followed by a last-minute inflection to pre-election highs during the month’s last week.

Weekly Insights: Valuations – Not As High As You Think

High valuations and rising bond yields are not a friendly environment for investors. And while that likely means correction risk is elevated, bond yields and earnings growth are moving higher for good reason. The economy is recovering and in the longer term that is very good news.

Weekly Insights: Waves of Money

Money that flows into or out of an asset class, sector or individual company matters, sometimes a lot. Consider the fact that apart from initial or secondary public offerings or option-related issuance from a government treasury, the number of shares available for purchase in a given company is relatively stable. We are simplifying things here, but if a group of new investors, perhaps Reddit followers who just received a fresh cheque (or check) from their new President, decide to put some money into “ABC Co.”, all else being equal, the share price will rise. It will rise until enough pre-existing or new investors decide that they are willing to sell their shares given the new price. Of course, this works in both directions.