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no-cover
July 27, 2015
Other

CANADA – Recession Worries!

Richard Croft

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...

607
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4 years ago
no-cover
July 16, 2015
Other

Capitalizing on a Valeant Effort in a Mundane Market

Jason Ayres

I apologize for the title but I couldn’t resist.  Valeant Pharmaceuticals International (TSE:VRX) continues to defy broader market complacency.  The diversified pharmaceutical company has barely wavered in its price advance since August of 2014.  While this trend may be getting a little long in the tooth,...

668
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4 years ago
no-cover
July 09, 2015
Other

The Time Horizon Chasm

Richard Croft

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...

706
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4 years ago
no-cover
June 29, 2015
Other

A Synthetic Long Stock Strategy For Canadian Banks

Jason Ayres

Canadian bank stocks have been somewhat unfavorable this year. Concerns about the Canadian economy, the impact of low oil prices and the pressure on lending margins from lower interest rates have had many investors questioning just how much more upside can be expected. The chart below is a snap shot of the weekly price action...

732
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4 years ago
no-cover
June 22, 2015
Other

Playing the Weak Loonie

Richard Croft

The Canadian dollar has fallen on hard times. The Canadian dollar tends to follow West Texas Crude so it’s not surprising to see our Loonie trading close to 80 cents US. With lower Canadian interest rates and a US rate hike all but assured the Loonie may week stay in its current range for some time. If you buy into that...

542
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4 years ago
no-cover
June 05, 2015
Other

Hedging Canadian Market Risks

Patrick Ceresna

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...

578
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4 years ago
no-cover
May 19, 2015
Other

Understanding How to Exit before you Enter

Richard Croft

Option trading is rarely static. Cost / benefit metrics can change quickly causing one to rethink whether the initial assessment underpinning a trade is still in play. Often follow up strategies are required to either minimize losses on trades that miss the mark or up the ante on profitable positions. Ideally, follow up...

553
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4 years ago
no-cover
May 19, 2015
Other

TFSA Contribution Levels Raised

Jason Ayres

Announced late April, but effective as of January 1st 2015, Canadians are now entitled to contribute $10,000.00 to their Tax Free Savings Account on a yearly basis, up from $5,500.00 last year. As of now, it makes the total contribution limit $41,000.00. According to news sources, the Liberals are on record opposing this...

879
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4 years ago
no-cover
April 29, 2015
Other

Hedging the Canadian Economic Recovery

Patrick Ceresna

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...

536
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4 years ago
no-cover
April 27, 2015
Other

Optimizing Your Covered Call Strategy

Richard Croft

Like a good dance lesson, writing covered calls is a two-step process. You need to be comfortable holding the underlying stock and should be happy if the stock is sold at the strike price of the short call. Having comfort with the underlying stock leads to the next step; which option to sell? Is there an optimum option to sell,...

656
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4 years ago