Using Options for Hedging Market Cycles and Tail Risks
November 01, 2016
Index Options

Using Options for Hedging Market Cycles and Tail Risks

There are many signs suggesting that the current economic business cycle, debt cycle and market cycle are in the mature to late stages. In traditional manner, there will eventually be a peak to trough correction that will play out no different then any other time in the past. As we approach the inevitable, the buy and hold,...

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3 years ago
The Divergence in Oil and Oil Stocks
August 08, 2016
Bullish Outlook

The Divergence in Oil and Oil Stocks

Something weird is happening in the energy markets… Oil and gas stocks seemed to stop caring what oil is doing. The divergences are staggering. What do I mean? Back in May, when crude oil was at its $50+ peak level, there was jubilee amongst investors. It has become consensus that oil has not only bottomed but is discovering...

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3 years ago
Betting on A Volatile Finish to the Year
June 01, 2016
Volatility

Betting on A Volatile Finish to the Year

There has been no shortage of volatility in the Canadian stock markets over that last year. It was April of 2015 that saw the S&P/TSX60 top at the 905.00 level and usher in a 9-month bear market decline that wiped out 25% of the value of the TSX down to the 680.00 level in January 2016. Over the last 4 months, the...

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3 years ago
Hedging Hope
May 03, 2016
Protection

Hedging Hope

Those that regularly follow my articles and forecasts can easily ascertain that I am a worry wart. Fortunately, or unfortunately I am always skeptical on overly optimistic views on stocks and the economy. So what am I skeptical on now? I am skeptical on the supposed turn around in the Canadian economy. Yes, things have improved...

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3 years ago
Has the Tide Turned for the Canadian Economy?
April 01, 2016
Index Options

Has the Tide Turned for the Canadian Economy?

The last two months have dynamically changed the narrative toward the Canadian economy. Over those two months, the markets have substantially shifted, including: 15% rise in the Canadian Dollar from its $0.68 lows to its current levels around $0.78. 27% rise in oil prices from their lows below $30.00 to around $38.00 today. 16%...

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3 years ago
Will Gold Glitter Again – Part II
February 29, 2016
Index Options

Will Gold Glitter Again – Part II

With gold having a strong start to the year and a solid 20% off its 2015 lows, the bulls vs. bear’s arguments have taken center stage. Let’s review both arguments. Bear Case for Lower Gold Gold is an inflation hedge and performs poorly in deflationary times. The most commonly referenced example is the 20-30% decline in gold...

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3 years ago
The Canadian Bear Market Roars!
February 04, 2016
Bearish Outlook

The Canadian Bear Market Roars!

I find a sense of irony that investors need to be losing 20% or more on their equity investments before the economic experts feel they can officially conclude that it is a bear market. It makes it almost meaningless to react to the news as often the worst part of the portfolio damage has already occurred. None the less, we find...

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3 years ago
The Risks of Prolonged Commodity Weakness
December 17, 2015
Trading Idea

The Risks of Prolonged Commodity Weakness

The Bank of Canada released its semi-annual Financial Systems Review on December 2015. Click to download the Report. While the report was comprehensive in looking at Global Macro Risks, we wanted to focus on their comments on the global commodity markets. Here is an excerpt from the report (p.27): “Risk 4: Prolonged Weakness...

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4 years ago
no-cover
October 29, 2015
Other

Will Gold Miners Glitter Again?

This week ushers in a wave of 3rd quarter earnings for many of the large cap gold stocks in Canada. We reference the term large cap loosely as the gold bear market of the last 4 years has wiped out the market capitalization of many gold miner darlings. In some cases 75% or more from their peak values. During that bloodletting,...

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4 years ago
no-cover
September 29, 2015
Other

Creating Income from Franco-Nevada

To say that the gold mining sector has underperformed over the last 3-4 years is a significant understatement. The sentiment in the group has never been more negative as some darling gold miners have lost more than 90% of their value. Yet, in that environment, one gold company has been able to stand strong like the Rock of...

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4 years ago