Recent Articles



Weekly Insights: Winter is Coming for the Static 60/40

Investing is not easy and never has been. However, the healthy performance of bonds and equities over the past 30 years has certainly helped reduce the portfolio impact of any missteps along the way. The adage “a rising tide lifts all boats” certainly holds true. Over the past three decades, Canadian equities, global equities (in C$) and Canadian bonds have each annualized between 7-7.5%. Even if you knock off about 1.8% due to annualized inflation during that period, you are still looking at a real return over 5% from these major asset classes. This is a pretty
friendly environment for creating wealth with a standard 60/40 buy and hold strategy.

Weekly Insights: Place a Bet

Active management is all about placing bets on companies or sectors that the portfolio management team believes are poised to outperform; and by extension placing smaller or no bets on areas of the market expected to underperform. These “bets,” relative to the overall market, comprise how a strategy is different to the overall market, typically measured by a market-capitalized index or benchmark. This results in being – in often-cited terminology – overweight, market weight or underweight a given sector.

Weekly Insights: Feeling a Little Loonie

Last week was busy for watchers of Canada’s economic data, with the main event being the Bank of Canada (BoC) rate announcement. Not surprisingly, the bank left rates unchanged. It also released its Monetary Policy Report, which is always an interesting read. The good news is that Canada’s economy has fared better than the BoC’s worst-case scenarios and, in general, new bank Governor Tiff Macklem’s comments were somewhat more upbeat than expected. This was evident from the
Canadian dollar’s immediate move upward.

Investor Strategy: Opening Up, July 2020

This is not the way we expected to wrap up the first six months of the new decade. A year that opened with decent – albeit shaky – economic prospects faced an abrupt and unprecedented economic contraction resulting from the COVID-19 pandemic. In more recent months,  expectations over re-opening and a V-shaped recovery set the stage for remarkable comebacks across most asset classes.

Weekly Insights: What’s Wrong with my Divs?

Canadian investors love dividends, perhaps even bordering on a slight obsession. How many investors in, or nearing, retirement plan on leaving the principal intact and just living off the dividends?

Weekly Insights: Gold Re-Up

Some investors love gold all the time (often called gold bugs); some investors hate gold all the time, usually the result of losing money on the yellow metal. We are neither as our view changes over time; but over the past couple of years we have been, and remain, fans of gold exposure for investors.

Weekly Insights: Alts get a B+ this bear

Everyone likes the sound of something that is unique or even exotic. Would you rather own a fund that invests in equities or one that invests in equities with a call option writing overlay strategy to enhance the yield? Marketers know the second option sounds more appealing and rarely will they mention there is a trade-off as some market environments favour the first option.

Weekly Insights: Behavioural Mistakes Abound

Behavioural finance has gained a considerable amount of popularity over the past few years as it pertains to investing. Among other things, it highlights how humans appear to be hardwired to make certain systematic mistakes despite our best efforts.