Stick to Gold Bullion during Market Drawdowns

Historically, gold bullion has performed well during periods of stock market turbulence. For example, during the 2008 Great Recession, gold rose over 20% while the S&P 500 fell 57% from its 2007 peak to its March 2009 bottom. Over the course of the prior major market decline...

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Digging Beyond Profit Margins

Profit margins for the S&P 500 constituents, excluding financials and companies in volatile sectors such energy and materials, have been steadily rising since the end of the 2001-2002 recession (Chart 1). The median 2016 EBITDA margin for this group was 22.6%, an all-time high. The median net margin came in at...

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Yield Curves Shifting and Flattening, but No Signs of Recession

We pay close attention to global yield curves. Yield curve inversions (i.e., short rates higher than long rates) have been reliable business cycle peak indicators in the past (see our previous Insight, How We Monitor the Economy). Canadian and U.S. yield curves have converged over the last couple of years...

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Value Approach

As value investors we tend to be contrarian, investing in undervalued companies that we believe are temporarily out-of-favor but misunderstood. We prefer businesses with strong moats and competitive advantages, led by management teams incentivized to maximize return on capital.

Canada comprises only 4% of global stock market capitalization. Our go anywhere approach provides more opportunities.
Trade Optimization

Proprietary models are used in an attempt to optimize the timing of buys/sells of our investment ideas.

Market Risk Management

Proprietary models are used to monitor numerous global markets and commodities, alerting us to potential bear markets.

Economic Risk Management

Proprietary economic models are used to monitor the business cycles of the major global economies. 


We may consider employing short positions, option positions or other strategies, either opportunistically or for risk management, to reduce volatility, mitigate drawdowns and lower correlations to the overall market.