Monthly Market Commentary

Auto Sales: the Canary in the Coal Mine?

December 2018

The Bank of Canada has increased its key policy interest rate five times over the last year-and-a-half. This represents the largest sustained increase of the rate in almost 13 years. Over these 13 years, Canadians responded to the downward trend in rates by increasing their...

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Where Do Things Stand After the October Selloff?

November 2018

October was… well it was something. For the second time this year, global equity markets had a substantial selloff. Also for the second time this year, the financial media tried to one-up each other with inflammatory headlines: Source: Business Insider, CNBC, ABC News, CNN,...

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Emotional Investing and Environmentalism

October 2018

What’s better for the environment: driving or biking? We’re going to assume that you chose biking. Your analysis probably went something like this: cars burn gasoline and emit exhaust. And gasoline is produced by oil companies who turn pristine pockets of nature into industrial sites....

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Do Buybacks Matter?

September 2018

Thinking about share buybacks can make your head hurt. The act of a company buying its own shares can resemble art created by M.C. Escher. Because of this, there are misconceptions about what buybacks actually accomplish. Do they slow economic growth? Do they inflate share prices? Are they some...

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Don’t Just Do Something, Stand There

July 2018

People have a hard time sitting still. “All of humanity's problems stem from man's inability to sit quietly in a room alone,” said Blaise Pascal. Perhaps this has never been more evident than the present day: the next time you see someone sitting alone, observe how long it takes...

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Evaluating Management

June 2018

Have you ever gone on a date? Have you ever interviewed someone for a job? Have you ever done both at the same time? (Let’s ignore the HR implications of this scenario.) Professional investors often find themselves in situations that are a hybrid between a date and an interview. When meeting...

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Too Much of a Good Thing?

May 2018

Things are going swimmingly! Especially in the U.S. We’ll forgive you if you didn’t know that, given all the rhetoric about the dangers of free trade and how jobs need to be brought back to America. But it’s true! Look, there’s even a chart to back up this claim: the U.S....

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Winner Take All?

April 2018

The following chart recently caught our attention. It shows the number of movie tickets purchased per capita over a span of time in the U.S. It illustrates a drastic decline in attendance at the cinemas in an abbreviated period of time. We have redacted parts of the chart because we want you to...

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“Trade wars are good, and easy to win”

March 2018

In an effort to protect domestic steel and aluminum producers, U.S. President Donald Trump recently announced his intention to impose tariffs on imports of the two materials. Trade wars are a contentious issue, so the pushback to the announcement was swift. In an attempt to defend his stance,...

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Stocks Go Up, Stocks Go Down

February 2018

Is it time to panic? On February 5th the Dow Jones Industrial Average index fell as much as 1,600 points, an intraday record. And the financial media lost their minds: Source: Bloomberg, Wall Street Journal, Financial Times, Globe and Mail As often happens when inflammatory headlines proliferate,...

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