Cutting Through the Noise
August 3, 2010
In this week’s rerun we flip the calendar back to September 2007. The loonie had recently hit parity with the U.S. dollar for the first time in over 30 years. Predictions were widespread on which direction it was headed next. As for our forecast? (see the last...
Read MoreJuly 30, 2010
Investors have learned to deal with a lot of anxiety over the last couple of years, what with a severe credit crisis, major bank failures, derivatives gone bad and gyrating stock markets. Indeed, stress is becoming the new buzz word. Below are some stress-related observations and musings on the week that was. Stress tests: European banks were recently subject to a health check in the form of stress...
Read MoreJuly 27, 2010
This week we look back to the summer of 2006. The U.S. housing market was at a turning point. The consensus view was that it would be a soft landing. Tom disagreed. Four years later, prices are still down 40-50% from their peaks in some markets...
Read MoreJuly 26, 2010
The latest acronym in the investment world smells a little funny. The STINC countries (Singapore, Thailand, Turkey, Indonesia and Chile) are meant to represent export-oriented nations that have shown good fiscal restraint and infrastructure investment...
Read MoreJuly 20, 2010
In this week’s rerun, we revisit the asset backed commercial paper (ABCP) debacle as a reminder of a key lesson in investing – if you don’t understand what you’re getting into, don’t buy it. Purdy, what were you thinking? Didn't you know how complex and...
Read MoreJuly 15, 2010
The second quarter of 2010 was a challenging period for equity markets, as investors focused on the European debt problems and the sustainability of the global economic recovery. In this podcast, we review these issues and highlight some of the key messages from our Quarterly Report. You can subscribe to our podcasts via iTunes...
Read MoreJuly 8, 2010
In our discussions with investors, we’ve found there are a few misconceptions surrounding the deductibility of investment management fees. The most common misunderstanding is that mutual fund investors are at a disadvantage (from a tax...
Read MoreJuly 6, 2010
Who doesn’t love summer? Sunshine, BBQs, lounging, water sports...it’s all good. And then of course, there’s the other summer ritual – reruns. We thought we’d build on the tradition by re-publishing a blog each week from the Steadyhand archives. For our...
Read MoreJune 25, 2010
Below are some observations and musings on the week that was – a new feature that we’ve aptly coined The Back Hand. The world’s eyes are on Toronto this week as the G20 Summit nears. While the thought of a weekend of politics and bureaucracy...
Read MoreJune 24, 2010
In his latest interview with Independent Investor (a U.K. publication), Sandy Nairn, the CEO of Edinburgh Partners (the manager of our Global Equity Fund), provided his views on the global economy and capital markets. After being cautious in late 2007...
Read MoreJune 22, 2010
Financial Post journalist Jonathan Chevreau wrote an interesting piece yesterday on Morningstar Canada’s new Stewardship Grades. The article highlights an attempt by the Investment Funds Institute of Canada (IFIC) to discourage Morningstar from...
Read MoreJune 17, 2010
Morningstar Canada, a mutual fund research firm, recently introduced Stewardship Grades for over 25 fund companies. In their words, the Stewardship Grade “goes beyond the usual analysis of strategy, risk and return. It is intended to assess...
Read MoreJune 16, 2010
The Globe and Mail recently reported on an issue that all investors who own a Tax-Free Savings Account (TFSA) should be aware of – over-contribution penalties. Canada Revenue Agency (CRA) has informed 70,000 investors that they may have to...
Read MoreJune 14, 2010
Small funds produce better returns. This is the conclusion of a recent study, titled Pension Fund Performance and Costs: Small is Beautiful, which looked at the performance of U.S. pension funds from 1990-2006. Published by a trio of...
Read MoreJune 2, 2010
Preet Banerjee is an industry insider who runs a blog titled Where Does All My Money Go? (his blog was ranked Canada’s #1 investing blog by the Globe and Mail last month). Preet recently developed a resource for investors called the Know Your...
Read MoreJune 1, 2010
I was having dinner with my dad the other night and we got on the topic of credit cards. We both have cards that reward us with air miles (in one form or another) for all our purchases. And importantly, we both pay our cards off each month. Somewhat proudly...
Read MoreMay 27, 2010
Tom met with Edinburgh Partners Limited (EPL) on their home turf last week for an annual update on their firm and global equity portfolio. It was also an opportune time to discuss some of the issues currently impacting Europe and get the CEO’s (Sandy Nairn) thoughts on the debt crisis that is overhanging Greece...
Read MoreMay 25, 2010
I recently attended a luncheon hosted by Connor, Clark & Lunn, the manager of our Savings Fund and Income Fund. The session focused on the economy. Larry Lunn, the firm’s chairman and co-founder, was the keynote speaker. Larry is an experienced...
Read MoreMay 17, 2010
The Task Force on Financial Literacy is a federal government initiative aimed at strengthening the financial literacy of Canadians. The Task Force, which is comprised of 13 members, was appointed in June 2009 (as part of the federal budget), and will...
Read MoreMay 12, 2010
First it was swine flu. Now it’s fragile economies. Seems like pigs can’t catch a break these days. The southern European nations of Portugal, Italy, Greece and Spain (PIGS) are garnering plenty of attention in the media, as investors fear these countries may...
Read MoreApril 29, 2010
There’s an old saying that mutual funds are sold, not bought. Canada’s mutual fund industry is a perfect example. The majority of financial advisors are paid commissions by fund companies for selling their funds and keeping clients invested in them. Up...
Read MoreApril 28, 2010
April 27, 2010
Michael Lewis has a talent for writing about financial issues in a provocative and colorful manner. Having worked as a bond salesman for Salomon Brothers in the 1980s, he leans on his experiences and lessons learned on Wall Street to bring his readers...
Read MoreApril 22, 2010
George Morgan joined Mackenzie Financial in January 2009 as a Senior Vice-President and Portfolio Manager for the Mackenzie Cundill American Class Fund. Mackenzie issued a public announcement at the time. Here are a few excerpts: "George is an...
Read MoreApril 12, 2010
In this podcast, Tom and I highlight some of the key messages from our Quarterly Report. We also discuss our three-year performance (Steadyhand marked its third anniversary in the quarter) and provide an overview on the advice we are currently providing to clients. You can subscribe to our podcasts via iTunes...
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