For clients who didn’t already own it, we added Nvidia (NVDA) to suitable portfolios back in April, during the market sell-off triggered by tariff worries. We purchased the Canadian Depositary Receipt to avoid currency swings, but for context, U.S. shares traded roughly between $102 and $105 on April 23—the day of our purchase. Today, NVDA […]
President Donald Trump is once again floating the idea of cutting the number of corporate earnings reports in half — from four to two per year. The proposal, first raised during his presidency in 2018, would have U.S. public companies report every six months instead of quarterly. While it may sound like a way to […]
I have trouble keeping up with the reasons why Bitcoin moves in either direction. It seemed correlated with the Nasdaq coming out of the pandemic; then was compared to “digital gold”; and recently it was a hedge against government mismanagement. Its bull case seems to change each day and I’m not embarrassed to say that […]
It’s not often that a stock jumps almost 7% in a single day because of an analyst upgrade. Nevertheless, that’s what happened on October 1 when Desjardins published a note about Algonquin Power & Utilities (“AQN”). “We are upgrading AQN to ‘Buy’ from ‘Hold,’ largely due to compelling valuation following recent weakness, strong management, and […]
Much like the Internet changed the world, so too will artificial intelligence. But with stock prices on fire lately, many are asking if we’re in a bubble that is ready to burst. When people foresee a bubble, anyone that owns stocks is wise to listen up. Federal Reserve Chair Alan Greenspan famously warned about “irrational […]
Last spring, shares of UnitedHealth Group (UNH) lost over half their value. The stock even dropped 18% on May 13, its worst single-day plunge since September 2008. With over 50 million people enrolled, UNH is the largest health insurance provider in the United States. Because customers have used their medical benefits at twice the expected […]
Western Copper & Gold (WRN) is up about 50% so far this year. But if Ottawa puts one particular project on its priority list to develop, the stock may go a lot higher sooner than later. WRN’s Casino Project in the Yukon just as easily could have been called Western Gold & Copper (instead of […]
Some may recall the raucous Question Periods during Paul Martin’s brief, 2-year minority parliament—the first since 1980—when he served as Canada’s 20th prime minister. Or his tenure as finance minister in the 1990s, when Ottawa’s deficits came under control. The spending had grown so out of control that Standard & Poor’s downgraded Canadian debt in […]
Last month, at a Rotary Club meeting, I found myself sitting next to someone I hadn’t met before. After asking about my profession, he leaned in a few minutes later and said, “Is it true that to get rich, you should only buy Canadian banks?” Well, I know of at least one person who rode […]
To my surprise, Maple Leaf Foods (“MFI”) has been our strongest performer this year, up nearly 80%. On February 26, 2024, we started buying MFI for clients at $22.82. At the time, the stock was about as unpopular with investors as I was with the ladies in high school. Just two trading days earlier, a […]
September has historically been a weak month for stocks, and this year’s sentiment will hinge on Jay Powell’s speech tomorrow at Jackson Hole Students aren’t the only ones uneasy about September—stocks often dread it too. Historically, it’s the worst month for the market. Since 1930, the S&P 500 has fallen about 55% of the time […]
Canada is entering a historic infrastructure boom. Electricity demand is expected to surge 25% by 2030, driven by artificial intelligence, electrification, and manufacturing. Aecon Group is perfectly positioned to build the critical infrastructure required to meet this exploding need. CEO Jean-Louis Servranckx recently said he’s “not worried about [revenue]”—and with good reason. Aecon’s backlog—the work […]
Mutual funds are marketed as safe and simple. But in reality, they often accompany hidden costs and conflicts of interest. We recently reviewed a portfolio managed by another institution. The Management Expense Ratio (“MER”), which is the total cost of owning a mutual fund and is embedded in its price, was much higher than its […]
As global fast food chains struggle, Pizza Pizza is quietly gaining ground—thanks in part to the growing “Buy Canada” sentiment. Back in February 2024, we published a blog titled “We Expect Pizza Pizza to Deliver”. Given the rising food inflation, higher interest rates, and shrinking household budgets, our thesis was that cheaper food would be […]
Anyone who lived through 2008 (or studied the 1930s) knows how frightening banking crises can be. The financial system runs on confidence, and once that’s shaken, restoring trust can take significant time. In 2023, the U.S. regional banking sector faced its own crisis. It started in March with the abrupt collapse of Silicon Valley Bank […]
JPMorgan CEO Jamie Dimon recently criticized remote work, using colourful language to make his point (as played on our webcast). Now Canada’s biggest banks (RBC, BMO, and Scotia) are doing the same, telling employees it’s time to show up in the office four days a week starting this fall. Mentorship and collaboration are two good […]
Someone once said that if Al Capone had turned his talents toward legitimate enterprise, he could have been the CEO of General Motors. Today’s fraudsters are no different—highly organized, intelligent, and using sophisticated tools. Unfortunately, they’re applying those skills to deception, not innovation. My Close Call Recently, I received a phone call that appeared to […]
As markets watch for interest rate cuts, political pressure on the Fed’s independence could shape inflation and U.S. dollar credibility in the years ahead. By Jeff Pollock Though lower interest rates are generally good news for stocks, what will happen if it comes at the expense of U.S. central bank independence? The Federal Reserve was […]
Earlier this week, the National Club at Bay and King in downtown Toronto unveiled their “Legacy Wall.” It honours many people, including my late grandfather. His name was William R. Allen, Q.C. Sunni Schneider, my mother, and I attended the lunch to honour Bill and the many other important people being recognized, including our Honorary […]
Canadian real estate prices took off during the last two decades alongside ultra low interest rates. Many people sought to buy a second property in a real estate market that once seemed invincible. Lately, however, many regret that decision as prices have come back down to earth amid higher borrowing costs. As a portfolio manager […]
