A page of history is worth a volume of logic. – Oliver Wendell Holmes
Markets
I am pleased to report another month of positive performance from each of the four portfolio strategies. Notably, Canadian Growth continues to outperform the TSX Index by a substantial margin over the past twelve months. Our strategies have adapted well to the new market environment by focusing on positive trends and identifying new growth opportunities in spite of obvious turmoil.
There is no doubt that the influence of passive investing, coupled with the recent entrance of government into financial markets, is redefining investment norms and creating new relationships between assets. I believe this unique and new environment ideally supports our numbers-first, rules-based approach, which enables us to concentrate on selecting companies that benefit disproportionately from these positive capital flows. I also believe that investors relying exclusively on theories and heuristics developed over the past 150 years may come up short-changed, as already so many traditional investment relationships have been rendered null in the past 200 days. If there was ever a time for evidence-based investing, it is now.
Financial Planning An Estate Freeze is an estate-planning technique used to lock in the current value and tax liability of property (business, real estate, holdco, etc) for the estate owner, while attributing the value of future growth to beneficiaries. This may be an ideal time to consider setting up an estate freeze since lower market value benefits the estate owner by lowering tax liability. If you have questions about your particular plan or would like to review with our team here, please be in touch.
The opinions contained herein are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Wellington-Altus Private Wealth. Assumptions, opinions and information constitute the author’s judgement as of the date this material and subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. All third party products and services referred to or advertised in this presentation are sold by the company or organization named. While these products or services may serve as valuable aids to the independent investor, WAPW does not specifically endorse any of these products or services. The third party products and services referred to, or advertised in this presentation, are available as a convenience to its customers only, and WAPW is not liable for any claims, losses or damages however arising out of any purchase or use of third party products or services. All insurance products and services are offered by life licensed advisors of Wellington-Altus. Wellington-Altus Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. All trademarks are the property of their respective owners.
Market Commentary
August 2020 Update
A page of history is worth a volume of logic. – Oliver Wendell Holmes
Markets
I am pleased to report another month of positive performance from each of the four portfolio strategies. Notably, Canadian Growth continues to outperform the TSX Index by a substantial margin over the past twelve months. Our strategies have adapted well to the new market environment by focusing on positive trends and identifying new growth opportunities in spite of obvious turmoil.
There is no doubt that the influence of passive investing, coupled with the recent entrance of government into financial markets, is redefining investment norms and creating new relationships between assets. I believe this unique and new environment ideally supports our numbers-first, rules-based approach, which enables us to concentrate on selecting companies that benefit disproportionately from these positive capital flows. I also believe that investors relying exclusively on theories and heuristics developed over the past 150 years may come up short-changed, as already so many traditional investment relationships have been rendered null in the past 200 days. If there was ever a time for evidence-based investing, it is now.
Financial Planning
An Estate Freeze is an estate-planning technique used to lock in the current value and tax liability of property (business, real estate, holdco, etc) for the estate owner, while attributing the value of future growth to beneficiaries. This may be an ideal time to consider setting up an estate freeze since lower market value benefits the estate owner by lowering tax liability. If you have questions about your particular plan or would like to review with our team here, please be in touch.
Recommended reading
Five long term trends that got sped-up by covid https://www.collaborativefund.com/blog/here-we-are-5-stories-that-got-us-to-now/
A good review of economic statistics and how the Fed is likely to respond https://blogs.uoregon.edu/timduyfedwatch/2020/07/20/federal-reserve-themes-in-the-second-half-of-2020/
Cordially,
Ben W. Kizemchuk
Portfolio Manager & Investment Advisor
Wellington-Altus Private Wealth
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The opinions contained herein are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Wellington-Altus Private Wealth. Assumptions, opinions and information constitute the author’s judgement as of the date this material and subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. All third party products and services referred to or advertised in this presentation are sold by the company or organization named. While these products or services may serve as valuable aids to the independent investor, WAPW does not specifically endorse any of these products or services. The third party products and services referred to, or advertised in this presentation, are available as a convenience to its customers only, and WAPW is not liable for any claims, losses or damages however arising out of any purchase or use of third party products or services. All insurance products and services are offered by life licensed advisors of Wellington-Altus. Wellington-Altus Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. All trademarks are the property of their respective owners.