Tag Archives: Historical Market Performance

OUR OCTOBER RESULTS

Our weighted average return in October was -3.88%. Since 2015, we have generated a net return of +40.48%.

In terms of investment strategy performance, our weighted average net returns for September were (a) -1.36% for conservative strategies, (b) -6% for balanced strategies, and (c) -2.97% for aggressive strategies.

October was a brutal month. In all of 2017, the S&P 500 index had 12 trading days where the daily change in price exceeded 1%. October had 10 such trading days. The monthly performance for key equity index ETFs were as follows: S&P 500 index -6.91% (SPY US), Euro Stoxx 50 index -8.18% (FEZ US), and MSCI Emerging Markets index -8.76% (EEM). Bonds outperformed equities, but there was nowhere to hide in the fixed income space as well. The Vanguard Total Bond Market ETF was -0.86% (BND US), the iBoxx $ High Yield Corporate Bond index (HYG US) was -1.98% and the JPMorgan Emerging Market Bond index (EMB US) was -2.42%. Ugly numbers. The only safe haven was the US dollar, which increased 2.59% versus the euro.

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OUR SEPTEMBER RESULTS

Our weighted average return in August was +4.74%. Since 2015, we have generated a net return of +46.16%.

In terms of investment strategy performance, our weighted average net returns for September were (a) +.03% for conservative strategies, (b) +1.70% for balanced strategies, and (c) +9.37% for aggressive strategies.

September marked the 10th anniversary of the collapse of Lehman Brothers. Despite considerable media mention of this painful theme, US equities continued to trade higher and gained 0.59% in September, posting an impressive gain of 7.7% for the third quarter of this year. In terms of economic data, US consumer confidence hit its highest level since 2000 (around the peak of the ‘dot.com’ bubble), while US small business confidence hit its highest level since the National Federation of Independent Businesses began its survey in 1974. Moreover, monthly average unemployment figures hit their lowest level since 1969 – the year the US Apollo Mission successfully landed on the Moon.

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OUR AUGUST RESULTS

Our weighted average return in August was +2.67%. Since 2015, we have generated a net return of +39.53%.

In terms of investment strategy performance, our weighted average net returns for August were (a) -0.33% for conservative strategies, (b) -0.71% for balanced strategies, and (c) +7.18% for aggressive strategies.

August was a difficult month for almost all asset classes other than US stocks, as it remains quite clear that international trade tensions have done little to dim US business confidence.

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OUR MARCH RESULTS

OUR MARCH RESULTS

Our weighted average return in March was -1.94%. Since 2015, we have generated a net return of +33.05%.

In terms of investment strategy performance, our weighted average net returns for March were (a) -0.61% for conservative strategies, (b) -1.60% for balanced strategies, and (c)-3.37% for aggressive strategies.

Financial markets continued to experience significant volatility in March and no sector was spared.

The prospect of global trade war, coupled with heightened tensions in Syria meant waking up every morning to new headlines that sent markets into tailspin or euphoria. By the end of the month, ‘tailspin’ had gotten the upper hand.

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OUR FEBRUARY RESULTS

Our weighted average return in February was -3.18%. Since 2015, we have generated a net return of +35.68% with a Sharpe ratio of 1.24.

In terms of investment strategy performance, our weighted average net returns for February were (a) -0.36% for conservative strategies, (b) -3.25% for balanced strategies, and (c)-4.37% for aggressive strategies.

February was a difficult month. January’s euphoria gave way to massive selling across all asset classes and served as a reminder that investing in capital markets is not easy.

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OUR JANUARY RESULTS

We are pleased to announce that our weighted average return in January was +2.07%. Since 2015, we have generated a net return of 40.14% with a Sharpe ratio of 1.56.

In terms of investment strategy performance, our weighted average net returns for January were (a) -0.41% for conservative strategies, (b) +0.64% for balanced strategies, and (c) +4.59% for aggressive strategies.

January was dominated by three major themes: (1) excellent returns in global equity markets, (2) US dollar weakness, and (3) a selloff in US treasuries.

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OUR DECEMBER RESULTS

We are pleased to announce that our weighted average return in December was +2.72%, resulting in total net return of +18.39% in 2017. Since 2015, we have generated a net return of 37.30% with a Sharpe ratio of 1.48.

In terms of investment strategy performance, our weighted average net returns were (a) +4.34% for conservative strategies, (b) +15.34% for balanced strategies, and (c) +28.40% for aggressive strategies.

In our November commentary, we mentioned that many of our favoured sectors had performed poorly. In December, they stormed back with a vengeance. Our largest individual equity holding – Canadian mining company Teck Resources Ltd. – rallied 15%. Our largest equity fund holding – the Polar Biotechnology fund – increased by 4.75%. Both have continued to trade up strongly in the New Year.

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OUR OCTOBER RESULTS

Our weighted average return in October was +1.5%, bringing our year-to-date net return to +15.68%.

Last month, equity markets traded up strongly and US corporate earnings continued to show impressive growth – most notably from the information technology (+22% EPS growth in Q3) and energy sectors (+156% EPS growth in Q3). According to Goldman Sachs “S&P 500 earnings grew by 7% in 3Q, the latest piece in a mosaic showing an extremely healthy operating environment for US corporates.” Furthermore, “S&P 500 earnings grew two percentage points faster than expected by consensus in 3Q. 51% of companies reported positive EPS surprises, in line with the first two quarters of 2017 and above the 15-year average of 47%.”

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OUR SEPTEMBER RESULTS

Our weighted average return in September was +0.60%, bringing our year-to-date return to +13.97%.

Equity markets continued to generate strong returns is September and bond prices weakened due to the continued prospect of higher rates in the US.

Last month, we mentioned that the energy sector looked oversold. We increased our energy exposure and benefited from a continued price recovery in energy stocks.

Our investments in base metal equities did not fare so well, but volatility is part of the price of admission in this sector and we have already seen a nice recovery in October.

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