Posts in Quarterly Commentary
Q2 2019 | Portfolio Commentary

To be ‘worth one’s salt’ is to be good or competent at your work.   The expression has roots in ancient Rome, where soldiers received a recurring allowance to buy salt.  This was called their ‘salarium’ and is the etymological root of the term ‘salary.’

Are your investments worth the fees you pay to your manager? This is always a hot-button topic in the investment world, especially regarding stock or equity funds.  What about the fixed-income or bond portion of your portfolio?  Is your fixed-income manager ‘worth their salt?’

A Lesson in Bonds
Finance 101 teaches us that when interest rates go down, bond prices generally go up.  The inverse is also true; bond prices tend to go down when interest rates go up.  In the chart below we can see that the 10-year Government of Canada bond yield has been dropping consistently for the past 30+ years:

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Q1 2019 | Portfolio Commentary

If you tried to time the market at the end of 2018 by selling your long-term portfolio and going to cash, the solid bounce back of the market in the first quarter of 2019 would have been humbling. Conversely, those who remained invested in our models witnessed an aggressive rally since the start of the year and have seen their portfolios fully recover from 2018 and then some.

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Q2 2018 | Portfolio Commentary - Income

2018 has been a wild ride thus far. The S&P 500 index, which measures the aggregate value of the 500 largest publicly traded companies in the US was up 7% by the end of February, only to abruptly shed 10% of its value.  After such a smooth 2017, volatility reemerged with a vengeance.  We started fielding calls such as “is it time to get out of the market?,” and “What is happening to NAFTA?” and “What are you guys doing about President Donald Trump?”   

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Q2 2018 | Portfolio Commentary - Growth

2018 has been a wild ride thus far. The S&P 500 index, which measures the aggregate value of the 500 largest publicly traded companies in the US was up 7% by the end of February, only to abruptly shed 10% of its value.  After such a smooth 2017, volatility reemerged with a vengeance.  We started fielding calls such as “is it time to get out of the market?,” and “What is happening to NAFTA?” and “What are you guys doing about President Donald Trump?”   

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