Sep 16, 2016

Probability of September Rate Hike

Good day, With the debate over a potential Fed rate hike, we’re closely watching the bond market and global yield activity. One of our fixed income portfolio managers is Christine Horoyski of 1832 Asset Management, who manages a portion of our fixed income mandate in both of our model portfolios. Christine has held some of.

Sep 9, 2016

Hudson Portfolio Update

Good day, The Hudson Total Mandate Portfolio is one of our two portfolio models with Hudson generally available only to accredited investors, or those who qualify for certain exemptions. I’ve attached below comments from one of our Portfolio Managers, Matt Levy. Have a great weekend! Danny Hudson ended last week with a Net Asset Value.

Aug 26, 2016

Cliff Jumping

Happy Friday, On lake Okanagan in BC there’s a spot half way down the lake where many go to jump off the rock formations into the lake. The cliff is about 25 feet high and ropes have been affixed on the opposite side to help swimmers climb to the jump spot. While it’s not overly.

Aug 5, 2016

Stocks Are The New Bonds

Good day, Many of us remember the high interest rate environment of the 1980’s where mortgage rates topped 18% and government bonds paid as high as 10-12%. Although this was a period of exceptionally high interest rates, prior to the late 1990’s bonds were purchased to generate income and keep volatility low, while stocks were.

Jul 15, 2016

Fear Turns to Greed

Good day, On June 24th, the day after the Brexit outcome, we stated that the market selloff would be short lived as investors would shrug off the news as soon as the media would focus on other stories. The knee jerk reaction affected markets for a couple of days but fear was shortly replaced by.

Jul 8, 2016

2017 Tax Strategy Grandfathering

Good day, For a number of years the Income Tax Act has allowed policy holders of certain insurance contracts to realize a number of tax benefits. Many Canadians dislike insurance or simply don’t have a need for the protection component, but nonetheless invest in such contracts due to significant tax advantages currently available to both.

Jun 24, 2016

Impacts of Brexit

Good day, A surprise “leave” vote by the British sent markets in both directions. While it’s no 2008, most equity markets are showing declines this morning with those in Europe most pronounced. The British Pound has taken a hit while the US dollar has climbed against all currencies except for the Japanese Yen. Safe haven.

Jun 17, 2016

Brexit Woes

Good day, A rocky week for global markets as investors wait to see the result of next week’s referendum in the UK. If the British vote to leave the European Union next Thursday we could see volatility in financial markets and currencies. On the other hand we will likely see a rally in equities and.

Jun 3, 2016

Be Flexible

Good day, Along with a number of Canadian portfolio managers and consultants, a group of the PMs at Harbourfront are also responsible for providing advisory services to a national asset management institution known as Willoughby Asset Management Inc. Most recently Willoughby launched another portfolio pool, this time available to both accredited and non-accredited retail investors..

May 13, 2016

Technology Falters

Good day, Technology shares have had a good run over the last few years but the trend has changed as of late. We have sold our tech positions in the Willoughby Investment Pool as corporate earnings in the sector have declined overall. The anomaly here is Facebook which has grown its earnings per share by.

May 6, 2016

Fort Mac Fires

Good day, While Fort McMurray’s oil sands plants are a distance away from the fires and therefore not at risk at the moment, production has dropped dramatically as Fort Mac residents have been evacuated entirely.  It is estimated that 1 million barrels a day of production has been halted which represents roughly 40% of the.

Apr 29, 2016

What’s Up This Week?

Good day, Our top two model portfolios are the Hudson Total Mandate Portfolio and the Willoughby Investment Pool. In the Hudson portfolio we removed the US dollar hedges this week on our hedged US equity holdings and re-allocated about 15% of the proceeds to US equities without a currency hedge. Maintaining a currency hedge means.

Apr 22, 2016

Understanding Negative Interest Rates

Good day, In order to prop up economies, countries around the world have cut interest rates below 0% for some time now. Canada has not opted for negative interest rates but the Bank of Canada has stated that it could do so if absolutely necessary. As our economy shows some signs of improvement, such fears.

Apr 15, 2016

What We’re Up To

Good day, About a year back I wrote that the “easy money” is over. Investor hunger for oversold equities post 2009, coupled with multiple rounds of monetary stimulus, had resulted in a near tripling of the S&P500. Given the generous valuations of early 2015, I stated that future opportunities would come from specific sectors and.

Feb 12, 2016

US Financials A Bargain

Good day, The irrational broad based selling over the last few weeks included US financial stocks which dropped roughly twice as much as the US market overall. As is often the case, investors have ignored the fundamentals. Today US banks are extremely well capitalized, have strong balance sheets, and are trading at very attractive valuations..

Feb 5, 2016

Will the Oil Rally Last?

Good day, A couple of weeks ago I wrote that oil prices have historically seen quick rebounds from depressed levels. As of this morning, in 13 trading days WTI is up $4.39/barrel or 15.9%, and Brent Crude is up $7 or 25.1%. While it’s too early to conclude that the January lows are indeed a.

Jan 15, 2016

Finish Line

Good day, Another week of market declines speared by oil’s relentless slide and continued concern that China’s economic woes will impact the world economy. Despite the broad selloff on the week, we saw aggressive buying on Thursday reminding us that investors won’t hesitate to press the buy button on any positive news. At this stage.

Jan 8, 2016

2016 Global Outlook

Good day, As expected the themes of 2015 are continuing into the New Year: China’s economic growth continues to slow; the Saudis are sticking to their guns and determined to drive the competition out of business; and the US dollar remains king. Divergence was the name of the game last year. Given the strength of.

Dec 22, 2015

The Christmas Truce

Friends, Not many know this but on Christmas day during World War I in 1914, tired of the battle, British, German and French troops disobeyed their superiors and reached a truce. Thousands of soldiers came together and sang Christmas songs, shared stories about their families, some played football and some actually roasted pigs together. Soldiers.

Dec 4, 2015

Never A Dull Moment

Good day, Lots going on this week… on Thursday US Chair Janet Yellen suggested that despite slow global growth, the US economy has been resilient to the point that she sees inflation hovering around 2%, at least for the next year or two. She made it quite clear that the various indicators which continue to show.

Nov 20, 2015

Big Gets Bigger

Good day, U.S. Markets rebounded this week resulting in 6 positive weeks in the last 8.  An exciting potential deal was announced this week between CP Rail and Norfolk Southern.  We’ve purchased CP Rail on June 26th in the Hudson Total Mandate Portfolio.  I’ve asked Matt to provide some details along with an interesting map.

Oct 30, 2015

October History

Good day, Investors regularly try to outsmart the market but it rarely seems to work. In the past there was some benefit in keeping seasonality in mind with October particularly known as a bad month for global markets with big single day drops. On October 24th, 1929 known as Black Tuesday, a record 16,410,0301 traded.

Oct 23, 2015

Trudeau’s Tax Plan

Good day, While Mr. Trudeau has some good intentions and hopes to positively impact human rights, global political tensions, investment in infrastructure, etc., the biggest contributor to his win was undoubtedly the promise to reduce taxes for middle income earners. I’m guessing that many voters interpreted the tax reduction plan as a huge benefit but.

Oct 9, 2015

What’s Up With Oil?

Good day, In June of 2014 crude oil hovered around $105/barrel and today it’s trading at just under $50/barrel, up from $45.09 in just shy of a month. With current supply levels outpacing demand and soft global economic growth, the short term outlook for oil is uncertain. At a hundred bucks a barrel companies were.

Oct 2, 2015

Confused Markets Continue

Good Day, Global markets continue to swing between losses and gains as investors look for clues to try to gauge the health of the global economy. The uncertainty surrounding the timing of a Fed interest hike has left investors confused resulting in higher volatility over the last few months. Even the savvy are contributing to.

Sep 18, 2015

Fed Stays Put

Good day, The much overblown debate over a Fed interest rate hike is over. It’s safe to say that markets had priced in at least one quarter percent rate hike if not two. Yesterday’s decision to keep rates unchanged will likely prove unfavourable for markets in the short term. A Fed hike this week would.

Sep 4, 2015

A Stormy Environment

Good afternoon, Markets have played tug of war over the last couple of weeks with knee jerk selloffs on fears of a global economic slowdown, followed by aggressive buying on lower valuations and positive economic news out of the U.S. All eyes are on the Fed which is scheduled to make a decision on whether.

Aug 21, 2015

China Intensifies Fears

Good afternoon, Global markets have had a rough week given oil’s continued slide and fears that China’s slowing economy will impact global growth. The S&P 500 is off roughly 6% from its May record high which fortunately is a drop in the bucket given the some 200% bull market over the past 6 plus years..

Aug 14, 2015

China Currency Devaluation Explained

Good Day, Tuesday this week, the central bank of China changed the way it manages its local currency.  The Yuan will now be fixed daily to the US dollar based on the its closing price on the previous day.  Essentially China is now letting markets determine the Yuan’s value where previously the central bank controlled.

Aug 7, 2015

Don’t Beat Yourself Up

Good afternoon, While in the Okanagan this week, a lady told me that her husband was kicking himself because he didn’t buy a property in the area some 25 years ago when waterfront lots were going for roughly $50,000. How many times have you heard people say something similar? “I should have invested in Google”.