Knowledge Centre

Monthly Insight

Equity Yields Beat Bonds February 2020
A buy signal may be flashing in the stock market, particularly relative to bonds. When you consider the state of the bond market, stocks look much less expensive. Yields on risk-free Government of Canada debt are near historical lows, which should be taken into consideration when valuing stocks because bonds...
Copper/Gold Ratio January 2020
Strictly speaking, gold and copper prices do not have any fundamental relationship to each other. However, when their prices are connected, they produce a marvelous indicator of how the markets and interest rates in particular are doing.
Presidential Election Changes December 2019
Historically there has been no significant difference between the performance of the stock market regardless of which political party was holding the U.S. presidency.
SPOOKY PERFORMANCE November 2019
While Halloween season may have passed, investors could be in for some very spooky performance going forward. Historically, when January to October has been good for the Canadian stock market, that momentum carries forward to strong returns for the remainder of the year.
SURGING OIL PRICE = GOOD EQUITY MARKETS October 2019
Contrary to popular belief, on a global scale there is very little correlation between the stock market and oil prices. Generally stock prices rise and fall based on future corporate earnings reports, intrinsic values, investor risk tolerances and many other factors.
ENERGY STOCKS VS. OIL PRICES September 2019
Investing in energy stocks can be a feast-or-famine experience. The highs are sheer bliss while the lows can be excruciating. It seldom seems as though there is any middle ground. There is, of course, one major catalyst that works to exaggerate the moves to the upside or downside. The price...
BETA VS. RETURN August 2019
Diversification by spreading monies across multiple asset classes is the cornerstone of modern investment theory. If investors choose the right classes then they can limit potential losses without compromising potential gains. In this era of high volatility, investors are constantly looking at different parameters such as earnings per share growth...
CHERRY-PICKING July 2019
Cherry-picking is the practice of presenting the results of a study that best supports your argument, instead of reporting all the findings. If you start with an open mind, that is perfect; however if one sets out to prove what one already believes, you are at the least misinterpreting the...
DAYTIME IS FOR LOSERS June 2019
A widespread misconception is that the stock markets are only open in the daytime. This is wrong considering that stock markets continue to work during the night. In fact, it appears that the daytime market is not where the best results are obtained. Overnight is when the real money is...
RIDE THE RALLY May 2019
The current Canadian stock market rally has reached 16.9% so far this year and it appears to be in good shape to continue roaring right along. Should we be celebrating? There is certainly a strong bullish case to be made because after market declines (including 2018) going back to 1924,...

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