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
July 2022 Update
Stocks and bonds fell for the first half of June before rallying strongly into the end of the month. As of the writing of this note on June 28th, Growth is down 2.2% over the last year, Income is down 2.3%, American Growth is up 5.4%, and Small Cap is down 14.6%.
Though declines are not a pleasant experience, we welcome the substantial outperformance, keeping in mind that our portfolios are starting their recoveries from comparatively higher ground. Our view is that high quality stocks have seen their lows for this cycle and that gains are more likely than usual going into year-end, making this a particularly advantageous time to put money to work.
We offer six reasons to remain optimistic:
Model Portfolio Highlights
Growth Portfolio
In June we took partial profits on Dollarama and Loblaws to buy a new position in Pembina Pipeline. Pembina transports petroleum products through key hubs in Canada and the US. The stock sports an attractive dividend yield which we believe has some room to grow, and will likely attract investors as markets stabilize and interest rates halt their ascent.
American Growth Portfolio
We made no changes to the portfolio in June.
Income Portfolio
In June we sold our real estate position and purchased a basket of US blue chip dividend stocks, taking advantage of the recent market volatility. We see the USD exposure acting as a valuable “hedged growth” opportunity, whereby on the market’s down days the USD usually goes up, making for less downside. This helps protect the portfolio while still exposing us to the eventual upside of recovering prices plus dividends along the way. We believe this should lower the portfolio’s volatility while preserving our conservative growth and income objective.
Small Cap Portfolio
We made no changes to the portfolio in June.
Across all portfolios we look for mispriced opportunities, considering only those with a significant margin of safety and minimal risk of permanent capital loss. After identifying such opportunities, patience is the most important factor in realizing our expected long term return.
If you have any questions about your portfolio, financial planning or investments please be in touch. Click to book a meeting: https://calendly.com/bwk-wapw
Thank you.
Yours,
Ben
Ben W. Kizemchuk
Portfolio Manager & Investment Advisor
Wellington-Altus Private Wealth
Office: 416.369.3024
Email: [email protected]
Book a meeting
Ben Kizemchuk offers full service wealth management for high net worth Canadians including families, business owners, and successful professionals. Ben and his team provide investment advice, financial planning, tax minimization strategies, and retirement planning.
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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.