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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4 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
no-cover
September 02, 2015
Other

Have We Seen the Market Bottom?

The last two weeks have seen material volatility as we had a serious market decline and substantial rebound in stocks. Much of the blame has been pointed toward China, but there is no denying the material declines in all global markets. The VIXC, which is the Canadian measure of implied volatility on the Canadian markets spiked...

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4 years ago
no-cover
August 01, 2015
Other

Interested in a potential 50% Return on Teck Resources?

Before we get into the juicy numbers of the options trade, it is important to put some perspective on Teck Resources and where it is at. Teck Resources is one of Canada’s premier basic material stocks. The company has global operations in copper, coal, zinc, lead, molybdenum, gold, silver and various chemicals/fertilizers....

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4 years ago
no-cover
June 05, 2015
Other

Hedging Canadian Market Risks

In full disclosure, it is my intention to be contentious in my views as I am disappointed by the lack of diverging opinions. The Canadian economy is in trouble and it is likely to get far worse than better and it is unlikely that the passage of time will fix the problem. Here are some simple truths you must consider when...

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5 years ago
no-cover
April 29, 2015
Other

Hedging the Canadian Economic Recovery

On February 24, 2015, Stephan Poloz, Governor of the Bank of Canada made the following statement: “The negative effects of lower oil prices hit the economy right away, and the various positives—more exports because of a stronger U.S. economy and a lower dollar, and more consumption spending as households spend less on...

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5 years ago
no-cover
March 30, 2015
Other

Have the Rail Stocks Been Derailed?

The past 4 years have been great for railway stocks. The boom in energy and exportation of resources since 2011 has seen revenues and profits soaring. Investors that participated in this story have been handsomely rewarded with stocks like Canadian Pacific Railway having risen 400% off of its 2011 lows. While I do not want to...

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5 years ago
no-cover
March 02, 2015
Other

Hedging the Currency Impact on Canadian Stocks

Canadian investors started the year with a pleasant surprise as the Canadian market and many Canadian stocks performed relatively well. We suggest a little digression to understand the precipitating factors that have driven this rise. Over the last 6 months, we have seen a dynamic shift in Canadian economics. Canada has been...

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5 years ago