CANADA – Recession Worries!
Probably the most noteworthy event in the first half of 2015 was the surprise rate cut issued by the Bank of Canada (BoC) in the first quarter. It was designed to provide “insurance against a downturn” in light of the sharp decline in oil prices. The BoC was right to be concerned. Unfortunately policymakers underestimated...
The Time Horizon Chasm
For the first half of 2015 global financial markets have been obsessed with short term noise. We have witnessed a succession of exacerbated reactions to on again off again negotiations with Greece, waste of time debates on the timing of a Fed rate hike or endless dissections of monthly jobs data where 20% revisions are more the...
Brexit is a reality!
Brexit is a reality! Despite the betting odds, despite the financial markets’ expectation that we would see a “remain” outcome, the British electorate knowing for bucking the odds voted to exit the European Union. And now we face the inevitable fallout. Unfiltered headline noise will set the stage this week. Witness the...
Gold versus Gold Stocks
Gold has been on a tear recently. Not because of any real change in supply demand metrics. This is all about defensive positioning against a perceived devaluation of paper currency. In short gold bulls are playing the crisis insurance card… again! I am not about to tell you to buy gold. I’ve talked about it in the past but...
Could Rates Go Lower?
Could we see lower interest rates? On the surface it seems counterintuitive with North American rates near zero and a Federal Reserve on a track to normalization. But with some industrialized economies – notably Switzerland, Germany and Japan – issuing debt with negative rates, near zero is beginning to look like the best...
Equivalent Option Positions
In the past couple of months, I authored three commentaries talking about covered straddles. There was the blog on Bombardier (April 18, 2016), another on energy stocks (May 3, 2016) and finally one on gold stocks (May 9, 2016). I call it the double up double down approach to investing. Without re-hashing the specifics of the...
Is it real?
The TSX composite index finished higher for a third consecutive day. Might have been four had Monday not been a holiday. But… is it real? Mindful that a three-day rally does not make a bull market it appears there has been a major change in sentiment. Rallying in the face of higher oil prices is a shift in sentiment. As is...
ESP For Option Traders
A covered call strategy carries about 50% to 70% of the risk associated with a long equity position. We accept that thesis as a rule of thumb, but how does one square that position mathematically? The simple answer is to evaluate the downside protection accorded by the premium. We receive more money and, by extension, more...
Playing Defence with Cash Secured Puts?
I have a love hate relationship with Canadian financial institutions. Canadian banks are tough competition for someone in the money management business. As an investment however, they are well capitalized – more than can be said for many European banks – and pay healthy dividends, which are bumped up on a regular basis. Or...
Gold Covered Straddles
I talked about gold… reluctantly, back in February. I also read with interest comments from Patrick Ceresna who, also in February, penned a two-part thesis on why gold should move higher. And Patrick provided some strategies for investors to take advantage of his bull case which, I might add, have paid off handsomely. I also...
Richard Croft
President, CIO & Portfolio Manager
Croft Financial Group
191 posts
0 comments
The information provided on this website, including financial and economic data, quotes and any analysis or interpretation thereof, is provided solely for information purposes and shall not be construed in any jurisdiction as providing any advice or recommendation with respect to the purchase or sale of any derivative instrument, underlying security or any other financial instrument or as providing legal, accounting, tax, financial or investment advice. Bourse de Montréal Inc. recommends that you consult your own advisors in accordance with your needs before making decision to take into account your particular investment objectives, financial situation and individual needs.
All references on this website to specifications, rules and obligations concerning a product are subject to the rules, policies and procedures of Bourse de Montréal Inc. and its clearinghouse, the Canadian Derivatives Clearing Corporation, which prevail over the content of this website. Although care has been taken in the preparation of the documents published on this website, Bourse de Montréal Inc. and/or its affiliates do not guarantee the accuracy or completeness of the information published on this website and reserve the right to amend or review, at any time and without prior notice, the content of these documents. Neither Bourse de Montréal Inc. nor any of its affiliates, directors, officers, employees or agents shall be liable for any damages, losses or costs incurred as a result of any errors or omissions on this website or of the use of or reliance upon any information appearing on this website.
BAX®, CADC®, CGB®, CGF®, CGZ®, LGB®, MX®, OBX®, OGB®, OIS-MX®, ONX®, SCF®, SXA®, SXB®, SXF®, SXH®, SXM®, SXO®, SXY®, and USX® are registered trademarks of the Bourse. OBW™, OBY™, OBZ™, SXK™, SXJ™, SXU™, SXV™, Montréal Exchange and the Montréal Exchange logo are trademarks of the Bourse. All other trademarks used are the property of their respective owners.
© 2024 Bourse de Montréal Inc. All Rights Reserved.