Market Ethos
May 21 - 20246 min read

More Bad News, S’Il Vous Plaît

I think we might be in that very unique market mood when bad news is good news. The equity market weakness in April can probably be attributed to bond yields moving higher, so any economic data on the weaker growth side is welcome news at the moment....

Craig Basinger

byCraig Basinger

Market Ethos
May 13 - 20247 min read

Is It Time for Emerging Markets?

The normal narrative for encouraging investors to look at emerging markets typically goes like this: The valuations are cheap, the demographics/rising incomes are supportive of growth, and they offer diversification. ...

Craig Basinger

byCraig Basinger

Market Ethos
May 06 - 202412 min read

Lots of Bulls and Bears

Take your pick. There is no shortage of both good and bad news floating about the financial markets. To be fair, this is always the case. ...

Craig Basinger

byCraig Basinger

Market Ethos
Apr 29 - 20246 min read

Earnings Optimism

There are three things you should rarely ever bet against: the Leaf’s opposing team in the playoffs, the American consumer’s ability to spend, and corporate profits. As we are now about halfway through U.S. earnings season, once again, positive surprises remain the norm; 81% have beaten....

Craig Basinger

byCraig Basinger

Market Ethos
Apr 22 - 20246 min read

Energy Stars Align

The oil market has been interesting lately and, to the surprise of many, has been the biggest silent outperformer this year....

Jeremy Lin

byJeremy Lin

Market Ethos
Apr 15 - 20245 min read

Value in the Canadian Dollar

The weakness in the Canadian dollar is pretty easy to explain. U.S. inflation has ticked higher, as has the American economic data. ...

Craig Basinger

byCraig Basinger

Market Ethos
Apr 08 - 20245 min read

Dividend Depression

Dividend investing is supposed to be easy. Find quality companies with long track records of paying or even increasing their dividends, buy some shares, collect your regular tax-advantaged payments over time and watch the share price go higher....

Craig Basinger

byCraig Basinger

Market Ethos
Apr 01 - 202414 min read

WHY?

Financial literacy is predicated on asking the question, “Why?” Why does this market keep moving higher? Why is inflation fading so slowly? Why are home prices high given low affordability?...

Craig Basinger

byCraig Basinger

Market Ethos
Mar 25 - 20246 min read

IPOs – Where Art Thou?

There is no denying the equity markets are in the throws of a strong advance. The S&P is up 21% over the past six months, Europe is up 19%,  and Japan is up 25%. ...

Craig Basinger

byCraig Basinger

Market Ethos
Mar 18 - 20246 min read

Inflation - Not Going Quietly Into the Night

Now with 2024 well underway and the equity market up smartly, should we be concerned that inflation doesn’t seem to be going quietly into the night?...

Craig Basinger

byCraig Basinger

Market Ethos
Mar 11 - 20246 min read

What’s Up With Gold?

If you have ever held gold within your portfolio, it is a safe assumption that you found the experience frustrating. Sometimes, the stars align for gold, such as positive retail/bank flows, falling real yields, a weaker US dollar, and war breaking out somewhere. ...

Craig Basinger

byCraig Basinger

Market Ethos
Mar 04 - 202413 min read

A Bubbly World

The history of markets is filled with examples of bubbles, creating great wealth on the way up and subsequently destroying much wealth on the way back down. ...

Craig Basinger

byCraig Basinger

Market Ethos
Feb 26 - 20247 min read

Cash vs GICs vs Bonds

So far this year, investors have piled into cash, added into bonds and sucked money out of equities....

Craig Basinger

byCraig Basinger

Market Ethos
Feb 20 - 20246 min read

Nobody Controls Risk in an Index

The steady redemptions over the years from active managers and reallocation to passive have created more steady selling pressure in strategies that focus on value or fundamentals....

Craig Basinger

byCraig Basinger

Market Ethos
Feb 12 - 20245 min read

American Exceptionalism

Over the past month or so, the economic data from America has certainly turned up somewhat. A strong Q4 GDP print of 3.1%, two back-to-back months of 300k+ job gains, and even manufacturing activity has ticked higher....

Craig Basinger

byCraig Basinger

Market Ethos
Feb 05 - 202416 min read

Conflicting Forces

In the heart of every market lies a fierce clash between bulls and bears, where optimism battles pessimism and greed contends with fear. Buyers and sellers engage, and their sheer will is one of the most important factors driving the markets. ...

Craig Basinger

byCraig Basinger

Market Ethos
Jan 29 - 20245 min read

Do Valuations Matter?

One could certainly question the importance of valuations in this market. If you were bold enough to buy Nvidia a year ago, ignoring the 60x price-to-earnings (forward earnings), you made money....

Craig Basinger

byCraig Basinger

Market Ethos
Jan 22 - 20248 min read

Moody Market

Markets certainly move around a lot. Last summer, the stock market rallied over a number of months into the end of July before going on a three-month decline due to rising bond yields. ...

Craig Basinger

byCraig Basinger

Market Ethos
Jan 15 - 20246 min read

Maybe It Was Transitory After All

The illusion of causality is a behavioural bias in which we believe there is a cause-and-effect relationship at work which just isn’t there....

Craig Basinger

byCraig Basinger

Market Ethos
Jan 08 - 20247 min read

60/40: The Reports of My Death Are Greatly Exaggerated

It was not that long ago, perhaps about a year at its peak frequency, that you couldn’t go far without coming across another report extolling the death of the plain vanilla 60/40 portfolio allocation. ...

Craig Basinger

byCraig Basinger

Market Ethos
Jan 02 - 202410 min read

2023 Year in Review

Let’s just say it: despite all the headlines, twists and surprises along the way, 2023 was a great year for investors. The S&P 500 was the star at +23% (all returns are total returns in CAD). ...

Craig Basinger

byCraig Basinger

Market Ethos
Dec 18 - 20233 min read

Top 10 Ethos of 2023

In keeping with our annual tradition, below are our favourite Market Ethos publications of the past year. In chronological order....

Craig Basinger

byCraig Basinger

Market Ethos
Dec 11 - 20236 min read

Is the “Buy the Dip” Era Over?

2023 may not be over yet, but with only a few weeks left, it appears to have been a great year to be an investor. Global equities are up about 15%, led by the S&P and Europe at +20%, followed by Japan at +13% and the TSX at +7%....

Craig Basinger

byCraig Basinger

Market Ethos
Dec 04 - 202331 min read

2024 Outlook – The Great Reset Final Act

Over the past couple of years, we have been enduring a great reset following a decade-long period that was characterized by disinflation, lower economic growth, low yields and lots of monetary stimulus. ...

Craig Basinger

byCraig Basinger

Market Ethos
Nov 27 - 20236 min read

Japan Still Rising

Have you ever noticed when a manager or advisor or investor talks about their portfolio, they tend to focus much more on what has worked out well and often gloss over detractors?...

Craig Basinger

byCraig Basinger

Market Ethos
Nov 20 - 20236 min read

Inflation Victory Lap

Grab that bottle of Veuve and give your sabrage skills a test; inflation is over, and it's time to party. Well, that is the way the equity markets have rejoiced on a handful of data points supporting the view that inflation risk is quickly fading. ...

Craig Basinger

byCraig Basinger

Op-Ed
Market Ethos
Nov 10 - 20239 min read

Portfolios with a Purpose – Active vs Passive

The debate between passive and active is not something new. There are strong arguments that can be made for both sides, but in our eyes, there does not necessarily have to be a clear winner of this battle....

Brett Gustafson

byBrett Gustafson

Market Ethos
Nov 06 - 202312 min read

Year-End Rally?

2022 was certainly a rather painful year for investing. There were more central bank rate hikes than any of us would care to count, yields moved from ultra lows to the highest in a few decades, and markets took it on the chin. ...

Craig Basinger

byCraig Basinger

Market Ethos
Oct 30 - 20235 min read

Earnings Hits and Misses

We are about halfway through the U.S. earnings season, with 245 of the S&P 500 having already reported. Earnings are rather backward-looking, kind of like GDP reports, since the quarter started in July and ended in September....

Craig Basinger

byCraig Basinger

Market Ethos
Oct 23 - 20237 min read

The Thematic Riddle

Okay, we will start this week with full acknowledgement that this edition is a bit self-serving; it’s about thematic investing, and yes, we launched a thematic-focused strategy last week....

Craig Basinger

byCraig Basinger

Market Ethos
Oct 16 - 20236 min read

Sometimes, Even a Free Lunch Can Taste Bad

Harry Markowitz, the father of modern portfolio construction, is often quoted as saying, “Diversification is the only free lunch” in investing....

Craig Basinger

byCraig Basinger

Market Ethos
Oct 10 - 20235 min read

Crowding Out Risk

Now, that was a blockbuster jobs report. The U.S. economy added 336k jobs in September, based on the nonfarm payroll report, which was much stronger than expected. ...

Craig Basinger

byCraig Basinger

Market Ethos
Oct 02 - 202313 min read

From Bayes to Bulls: A Probabilistic Look into Market Strategy

Here comes some good news: given the drop in August and September, markets are pretty oversold. Sentiment has turned more bearish, which is bullish....

Craig Basinger

byCraig Basinger

Market Ethos
Sep 25 - 20236 min read

Markets Yield to Higher Yields

Not a very kind September so far, as equity markets are down: TSX -2%, S&P -4%, NASDAQ -6%, and international -2%....

Craig Basinger

byCraig Basinger

Market Ethos
Sep 18 - 20235 min read

Dividends for Sale

Investing isn’t easy. The markets rarely behave the way most think they should and seem to often behave to make the most people wrong. The financial media is filled with tales of fat tails – either things that went exceptionally well or extremely poorly....

Craig Basinger

byCraig Basinger

Market Ethos
Sep 11 - 20236 min read

Little Trouble in Big China

There’s no denying the Chinese stock market has had a tough go. Over the past 3-years, the Shanghai Shenzhen CSI 300 index is down about 15%. ...

Craig Basinger

byCraig Basinger

Market Ethos
Sep 05 - 202312 min read

AI to the Rescue (Again)

August was a difficult month for both stocks and bonds. Rising rates tightened financial conditions and sent both asset classes into the red. At one point, the S&P 500 was down nearly 6% from the July highs. ...

Craig Basinger

byCraig Basinger

Market Ethos
Aug 28 - 20236 min read

What Happens on the Other Side

Each year since 1978, the Federal Reserve Bank of Kansas City has sponsored a symposium on an important economic issue facing the U.S. and world economies....

Derek Benedet

byDerek Benedet

Market Ethos
Aug 21 - 20235 min read

In Need of Some Bad News

Markets have enjoyed a great advance in June and July, thanks to a number of factors....

Craig Basinger

byCraig Basinger

Market Ethos
Aug 14 - 20236 min read

Bulls, Bears, and Pumpkin Spice

Investor sentiment is a pendulum that swings back and forth between extreme optimism and extreme pessimism and never sits still. Every individual stock has its own little pendulum. At times investors rapaciously bid up shares, believing prices will continue driving prices to irrational levels....

Derek Benedet

byDerek Benedet

Market Ethos
Aug 08 - 20235 min read

Earnings: Economists vs Analysts

Here we are again, closing out the Q2 earnings season for the U.S. and Canadian equity markets. The S&P 500 is now over 84% complete and has seen positive surprise rates of about 80%, keeping with standard practice....

Craig Basinger

byCraig Basinger

Market Ethos
Jul 31 - 20239 min read

Time Flies

Time often seems to slow down during market sell-offs or corrections, as the volatility creates a more news-filled world. On the flip side, when markets keep going up, time flies. So if you are wondering why this summer seems to have flown by quickly, blame the stock market. ...

Craig Basinger

byCraig Basinger

Market Ethos
Jul 24 - 20237 min read

Currency Matters

At the beginning of the year most strategists expected a few things: recession to soon materialize, the Fed to stop hiking, pivot mid-year, and then aggressively cut in the second half leading to U.S. dollar weakness....

Derek Benedet

byDerek Benedet

Market Ethos
Jul 17 - 20237 min read

Style Postmortem

While we have kept up with our peer group thanks to some other contributors such as Japan, an overall overweight in international equity and manager selection within fixed income, our style tilt has been, well, wrong so far in 2023....

Craig Basinger

byCraig Basinger

Market Ethos
Jul 10 - 20235 min read

Jobs

Well, it looks like AI (artificial intelligence) has not replaced everyone’s job just yet. Last week saw a surprisingly strong ADP employment report of 497k – double what economists were expecting....

Craig Basinger

byCraig Basinger

Market Ethos
Jul 03 - 202311 min read

Everything Has Gone K-Shaped

Economic parlance often tries to use a single letter to capture what is happening. For example, a V-shaped recovery in the economy or market represents a sudden drop followed by a sudden rise; L-shaped is a sudden drop followed by a muted recovery. ...

Craig Basinger

byCraig Basinger

Market Ethos
Jun 26 - 20236 min read

Does the Market Need to Drink to Have a Good Time?

If the punch bowl is stimulus, it is safe to say over the past number of years, the market has become rather hooked on this sweat-intoxicating elixir. QE, rate changes, and twists all had pretty big impacts on stock prices, both up and down. ...

Craig Basinger

byCraig Basinger

Market Ethos
Jun 19 - 20238 min read

Dividend Divergence

The headlines are currently dominated by stories or ‘financial explanations’ as to the jump in U.S. equities, enjoying one of the best weeks in months. AI, Fed pausing rate hikes, some decent economic data, and improving breadth are the most prevalent....

Craig Basinger

byCraig Basinger

Market Ethos
Jun 12 - 20237 min read

It's Priced In

Have you ever heard the words “it's priced in,” referring to the market or an investment pricing in some sort of potential negative event? The TSX is trading at 13x earnings estimates, historically low for this index, clearly pricing in some uncertainty or potential recession ahead....

Craig Basinger

byCraig Basinger

Market Ethos
Jun 05 - 202310 min read

Two Tales of the Same Market

Global equities, as measured by the Bloomberg World Equity Index, are up 9% so far in 2023. So, is it safe to give the all-clear with a soft landing and markets go higher? ...

Craig Basinger

byCraig Basinger

Market Ethos
May 29 - 20235 min read

Is the Third Time a Charm?

For the third time in as many years, gold is brushing up against the 2,000/oz zone, raising the question of whether this resistance level will hold once again or will the yellow metal finally break out. ...

Craig Basinger

byCraig Basinger

Market Ethos
May 23 - 20235 min read

Buy the Dip or Sell the Tip?

Looks like we have a deal. Markets are pleased that a debt ceiling appears to be within reach, avoiding all the potentially bad stuff that this politically motivated crisis could have unleashed....

Craig Basinger

byCraig Basinger

Market Ethos
May 15 - 20236 min read

Good News, Good News, and More Good News

Over the past few weeks, we would say the news has been tilted solidly towards the ‘good’ side. The world’s largest central bank (Fed) effectively announced the cessation of rate hikes, ending a fourteen-month journey that raised overnight rates from 0.25% to 5.25%. Yay!!!...

Craig Basinger

byCraig Basinger

Market Ethos
May 08 - 20235 min read

Leaning Back a Bit

Good news – the world’s largest central bank hit the pause button on rate hikes last week. After embarking on a rate hiking cycle in March of 2022, it would appear the Fed is done for now after hiking from 0.25 to 5.25%. Yay!! ...

Craig Basinger

byCraig Basinger

Market Ethos
May 01 - 202311 min read

Hold the Line

The S&P 500 is up about +8% so far this year, the TSX +7%, Europe is up well over 10%, and Asia is doing pretty well, too. Even bonds are up. This bear market rally (assuming we are still in a bear market) is being fuelled by a healthy dose of good news....

Craig Basinger

byCraig Basinger

Market Ethos
Apr 24 - 20237 min read

Bigger Is Not Always Better

For broad U.S. market exposure, bigger isn't always better. In a multi-asset portfolio, we've long argued the case that being active can provide long-term added value. But being active doesn't necessarily mean solely relying on active managers....

Derek Benedet

byDerek Benedet

Market Ethos
Apr 17 - 20234 min read

Glass Half Full

It’s been a good month with the S&P and TSX bumping up against the top of a range that has existed for half a year now....

Craig Basinger

byCraig Basinger

Market Ethos
Apr 10 - 20235 min read

Bonds Being Bonds Again, Who Knew?

For years bonds had a single job in portfolios, providing a ballast during periods of equity market weakness. Ok, maybe spin off a little income along the way....

Craig Basinger

byCraig Basinger

Market Ethos
Mar 31 - 202313 min read

Active Defence

Investing is never easy, even at times like back in 2021 when it actually was easy. Just about everything went up in 2021, but this year isn’t the same. ...

Craig Basinger

byCraig Basinger

Market Ethos
Mar 27 - 20236 min read

Stuck

If you take a step back from the day-to-day market gyrations, it appears we are stuck. How could the market become unstuck and, most importantly, in which direction?...

Craig Basinger

byCraig Basinger

Market Ethos
Mar 16 - 20237 min read

It Is 2023, Not 2008

It’s fair to say that investors remember the last bear market the best; the one before that is a hazy memory, and if they have been investing long enough, the one before that is almost forgotten. ...

Craig Basinger

byCraig Basinger

Market Ethos
Mar 13 - 20237 min read

Thinking Long-Term Returns

It is fair to say we spend a good portion of our time researching, thinking and talking about what will happen this week, next week, next month, and next quarter. Will inflation come back down? Is there a recession coming, and if so, how will it look? How could capital markets react? ...

Craig Basinger

byCraig Basinger

Market Ethos
Mar 06 - 202315 min read

Worth a Read or Two

Markets and the economy never travel in a straight line, and the last few months have had more than their normal share of zigs and zags....

Craig Basinger

byCraig Basinger

Market Ethos
Feb 27 - 20236 min read

Know Thyself

The S&P 500 is roughly where it was two years ago, around 4,000. But during this short time frame, it has visited 4,800 (+20%) and 3,600 (-10%) – clearly not a flat journey. The TSX has fared better, starting at 18,500, rising up to 22,000, back down to 18,500 and then up to 20,000....

Craig Basinger

byCraig Basinger

Market Ethos
Feb 20 - 20236 min read

Tightrope

Sometimes good economic news is bad (when inflation is the most significant risk), and sometimes bad is bad (when a recession is the risk). Today, this market appears to be walking on a tightrope where either good or bad economic news could elicit a bad market reaction....

Craig Basinger

byCraig Basinger

Market Ethos
Feb 13 - 20237 min read

Thematic ETFs Are Missing Something

Thematic ETFs have exploded in popularity as imaging future long-term secular trends is very exciting. But there appears to be a problem....

Craig Basinger

byCraig Basinger

Market Ethos
Feb 06 - 202316 min read

Rent This Rally, Don't Buy It

2023 has started off with a bang – a good bang, that is. After a tough 2022, which saw most asset classes, including stocks and bonds, moving lower, 2023 has started off on the right foot, with stocks jumping higher and bonds moving up too....

Craig Basinger

byCraig Basinger

Market Ethos
Jan 30 - 20237 min read

Risk – It Depends on You

Investing is all about balancing risk and return to achieve your long-term goals. I think everyone understands returns (especially when they're negative), but what about risk?...

Craig Basinger

byCraig Basinger

Market Ethos
Jan 23 - 20237 min read

Beep Beep

Markets, like Wile E., can be so singularly focused on one thing (inflation) that they can for better or worse be oblivious to approaching danger (recession)....

Derek Benedet

byDerek Benedet

Market Ethos
Jan 16 - 20236 min read

Hockey & Dividends

Another thing Canadians love is dividends or, more aptly, dividend-paying companies. So are we also really good at producing some of the greatest dividend-paying companies?...

Craig Basinger

byCraig Basinger

Market Ethos
Jan 09 - 20236 min read

A Job-Filled Recession?

Our team absorbs a lot of different economic/market views and opinions from a lot of different sources. We also do a ton of our own analysis. To put it bluntly, 2023 is lining up to be one confusing year....

Craig Basinger

byCraig Basinger

Market Ethos
Op-Ed
Jan 04 - 202319 min read

Purpose 2023 Outlook – Bear Market End Game

The current bear market began roughly the same time the ball in Time Square dropped to usher in 2022, which means with the more recent ball drop this bear celebrated its one-year anniversary. There is no blueprint for bear markets. Sometimes they are short (2020), sometimes long (2000-03)....

Craig Basinger

byCraig Basinger

Market Ethos
Dec 19 - 20226 min read

Our Top 10 Market Ethos of 2022

It's that time of year again when market activity subsides, and many investors enjoy their holidays. We have authored 39 Market Ethos publications this year, not including the Investor Strategy editions that come out at the start of every month....

Craig Basinger

byCraig Basinger

Market Ethos
Dec 12 - 20226 min read

Data, Shmata

Big week next week, with the US inflation number released on Tuesday. Expectations are for YoY CPI to continue to drift lower, falling from 7.7% in October to 7.3% in November. ...

Derek Benedet

byDerek Benedet

Market Ethos
Dec 05 - 202212 min read

Canada Is Alright

There has certainly been more good news in the markets over the month or so. Inflation stopped going up, and even appears to have softened a smidge. As we discussed, this is a bear market caused by inflation, so when the root cause begins to improve, the market reacts very positively. ...

Craig Basinger

byCraig Basinger

Market Ethos
Nov 28 - 20225 min read

Will Santa Make It to Xmas?

The term Santa Claus rally has been coined over the years for a good reason. Data back over a century reveals that December has the highest probability of any month to be in the green for the TSX and S&P 500 – 77% and 76%, respectively. ...

Craig Basinger

byCraig Basinger

Market Ethos
Nov 21 - 20226 min read

Regression to Reflexive

Someday this bear market will end, and this does appear to be the end of the market cycle that began in 2009. We believe the next bull cycle will look very different than the last, and this will have significant portfolio construction implications. In fact, it already does....

Craig Basinger

byCraig Basinger

Market Ethos
Nov 14 - 20225 min read

Kapow!

Well, that was a day! A better-than-expected U.S. CPI (inflation) print kicked off the largest one-day rally the market has seen since the 2020 pandemic bear....

Craig Basinger

byCraig Basinger

Market Ethos
Nov 07 - 202215 min read

Two Different Roads

The bear market in global equities is now in its 11th month, not necessarily long for a bear market but indeed approaching the average duration. Then again, global bonds are in their 23rd month of a bear market....

Craig Basinger

byCraig Basinger

Market Ethos
Oct 31 - 20226 min read

Defanging

2022 is not a fun year to be an investor, an advisor, and – most definitively from personal experience – not a portfolio manager. Inflation remains the market’s biggest angst, there is a potential recession of sorts on the horizon, and it is already well into a bear market....

Craig Basinger

byCraig Basinger

Market Ethos
Oct 24 - 20227 min read

No White Flag

After posting its third consecutive quarter of declines, the stock market has managed to stay slightly positive so far in October—despite bond yields continuing to climb. Both Canadian and U.S. 10-year bond yields posted new highs this past week with U.S. 10-years rising to 4.25%....

Derek Benedet

byDerek Benedet

Market Ethos
Oct 17 - 20227 min read

What the Dickens?

Last Wednesday, if you somehow had a premonition that U. S. Consumer Prices (CPI) were NOT going show signs of cooling but instead surprise to the upside to bring core CPI to its highest annual pace in four decades, you would have expected markets to tumble on Thursday....

Craig Basinger

byCraig Basinger

Market Ethos
Oct 11 - 20225 min read

Is Something Going to Break?

This bear market started off rather orderly. Due to inflation, central banks were hiking rates at speeds not seen in many decades and longer yields were also rising pretty fast from very low levels....

Craig Basinger

byCraig Basinger

Market Ethos
Oct 03 - 202218 min read

Investor Strategy - When Does the Bear Market End?

For the first half of the quarter, it looked hopeful that the markets were through the worst of it. By the midpoint of the quarter in August, both the S&P/TSX & S&P 500 were both chugging along nicely, up +7.8% and +13.9% (USD), respectively....

Craig Basinger

byCraig Basinger

Market Ethos
Sep 26 - 20226 min read

Searching for a Floor

Ok, we are not fans of seasonal trends in the market for the simple reason it is never that simple. Nonetheless, September, which has a history of lower returns and higher volatility, is certainly giving the seasonal supporters strong evidence this year....

Craig Basinger

byCraig Basinger

Market Ethos
Sep 19 - 20226 min read

Stock & Bond Correlation

The path to the greatest wealth creation is to load up a portfolio into one security – you just have to pick the right one. Ask Jeff Bezos or Bill Gates. Unfortunately, choosing the right one is either impossible or luck with incredibly impossible odds. ...

Craig Basinger

byCraig Basinger

Market Ethos
Sep 12 - 20224 min read

Dominating Dollar

In normal times—if you can remember those—asset class volatility was a declining range from the most volatile equities to bonds to the least volatile currencies....

Craig Basinger

byCraig Basinger

Market Ethos
Sep 06 - 202214 min read

Fall Is Coming

Yes, the summer rally really went from oversold levels in mid June to getting a tailwind from a number of contributors. Valuations in June had become much more appealing, and second quarter earnings did not erode as many had expected from rising costs. ...

Craig Basinger

byCraig Basinger

Market Ethos
Aug 29 - 20227 min read

Risk

In the past three years, investors in the TSX have experienced a 37% drop over a one-month span, a subsequent 109% gain over two years, then a 16% decline over three months, to then see a 10% gain in the past few weeks....

Craig Basinger

byCraig Basinger

Market Ethos
Aug 22 - 20225 min read

On a Warm Summer’s Evening

On a train bound for nowhere . . . or so the song goes. Investing is NOT gambling; done right, it incorporates thoughtful portfolio construction incorporating objectives with capital market assumptions influenced by the current environment and expectations going forward. ...

Craig Basinger

byCraig Basinger

Market Ethos
Aug 15 - 20226 min read

Forecasters’ Folly – Insight Versus Inanity

Investors often look for a playbook, a way to help guide them through times of uncertainty. History is often used to write that playbook. However, markets are just like any sport – rules change, equipment improves, athletes progress, and what worked best in the past may not always apply....

Derek Benedet

byDerek Benedet

Market Ethos
Aug 08 - 20227 min read

Why?

The tech-tilted NASDAQ has risen +20% since mid-June. Still materially down on the year, but a 20% rise over seven weeks is both significant in the size of the advance and duration....

Craig Basinger

byCraig Basinger

Market Ethos
Aug 02 - 202212 min read

What Butterflies Have to Do With the Recent Market Rally

One would think that with CPI rising, the Fed hiking rates by 75bps, the Bank of Canada hiking even higher by 100bps, the U.S. GDP posting a second consecutive quarter of negative growth, and the recession chorus growing louder, things are looking dire....

Craig Basinger

byCraig Basinger

Market Ethos
Jul 25 - 20225 min read

Stars Aligning for Japan

The often-cited investment adage that stocks go up in the long run seems to apply just about everywhere except Japan. The Nikkei index is still below its peak in 1989, over 30 years ago. ...

Craig Basinger

byCraig Basinger

Market Ethos
Jul 18 - 20226 min read

Emerging Markets – Not Now, Maybe Soon

Emerging markets (EM) have a very strong allure for inclusion into the international equity component of a portfolio. ...

Craig Basinger

byCraig Basinger

Market Ethos
Jul 11 - 20226 min read

To Hedge or Not to Hedge?

Even during these troubled times for the markets with equities down, yields up, inflation in everyone’s face, lost luggage, and now recession grumblings, still the most recurring question during client events remains the Canadian dollar....

Craig Basinger

byCraig Basinger

Market Ethos
Jul 04 - 202225 min read

2nd Half Better Than the 1st

It is halftime for 2022, and if this were a football match, the markets are in dire need of a great inspiration speech before retaking the pitch....

Craig Basinger

byCraig Basinger

Market Ethos
Jun 27 - 20225 min read

There’s Good News and Bad News

Would you like the good news first or the bad news? Sorry, it's a trick question as the news for both is the same: the economy is slowing down. It's good news as it will help the inflation pressures; however, the bad news is too much slowing, and we have a whole new set of problems....

Craig Basinger

byCraig Basinger

Market Ethos
Jun 20 - 20228 min read

What a Week

One thing is for certain, if you stopped paying attention to the market for a few days a lot has changed. ...

Craig Basinger

byCraig Basinger