by Richard Phillips, Chief Investment Officer and Kevin Muir, CFA, Market Strategist Executive Summary Canadian preferred shares have underperformed bond portfolios over the past two decades. Combined with higher volatility, this poor performance has resulted in a considerably lower Sharpe ratio for preferred shares. Although specific preferred issues might offer opportunities, there are most likely […]
by Richard Phillips, Chief Investment Officer and Kevin Muir, CFA, Market Strategist Executive Summary Portfolios need to be periodically rebalanced to ensure they maintain asset allocations dictated by the investor. These rebalancings have the added benefits of often increasing total return. Most importantly, regular rebalancing results in a reduction of portfolio volatility. According to Modern […]
by Richard Phillips, Chief Investment Officer and Kevin Muir, CFA, Market Strategist Executive Summary Market-capitalized stock indices are the benchmark for passive investing. Equal-weighted stock indices have outperformed market-capitalized indices, and with slightly less volatility. The difficulty in executing this strategy lies in the large drawdown periods when equal-weighted indices underperform the benchmark. For individual […]
Today, if the US and Canadian markets were to close the year where they are currently trading, it would mark a very unusual development. In the past three decades, there has never been an instance when both stocks and bonds have had negative return years. Yet here we are with the U.S. stock market hovering around zero while bonds are showing a negative return of almost 200 basis points.
Regardless of one’s view about Emerging Markets’ prospects, there can be no denying that Emerging Markets are on sale, with the low absolute P/E and P/B metrics. Taking a longer term view, this valuation is not something to fret about, but rather, something which may be worth taking advantage of.