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 greed on positive job data out of the US, and hints of economic stimulus from the EU and Japan.
Since the Brexit vote the S&P500 is up 2.45% and the TSX 2.71% (as of Thursday’s close), while the numbers jump to 8.2% and 6.02% respectively when calculated from the short term bottom on June 27th.
About a month ago we had entered the gold space in our Hudson model portfolio given the pre-vote uncertainty and as fears subsided thereafter, we exited the space last week with a 21% profit on our TSX gold plays. We will watch the volatility and consider re-entry if the metal continues to fall.
We continue to favour the energy space and our strongest performer in the Willoughby pool is Cliffs Natural Resources, up 61.7% from our average price of $4.526 USD.
Till next week.
Daniel Popescu CFP, CIM, FMA, FCSI
President & CEO
MNP Tower, 3100-1021 West Hastings St.
Vancouver, BC V6E 0C3
T: 604-558-6830/1(877) 588-6822
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