It is on the strength of observation and reflection that one finds a way. So we must dig and delve unceasingly. – Claude Monet
Markets
I am pleased to report all model portfolios finished higher in March. And after what’s been a raucous year, I am equally pleased to report March was relatively quiet in terms of news.
Many of the themes we’ve been anticipating are now coming to pass: the economy is reopening, inflationary pressures continue, public sentiment is improving, and we are making our way back to a feeling of normal. The companies in our model portfolios reflect these important trends and are well-positioned to capitalize on the flow. I anticipate that as long as interest rates don’t get too high, the market can stay in this mode for quite some time, delivering gains to more value-conscious investors like ourselves.
New Videos
https://www.youtube.com/watch?v=eMKjOL82-XM
Portfolio Manager Ben Kizemchuk talks about how demographic changes are driving investment outcomes, the battle between inflation and deflation, why stocks and volatility are both likely to increase, and how to take advantage of central bank policy.
https://www.youtube.com/watch?v=MG2av-NtoiY
Portfolio Manager Ben Kizemchuk reviews the Growth Portfolio, and recent investments in Canadian Banks TD and Royal Bank. Ben discusses how interest rates and fiscal policy have improved the outlook for banks over the last year.
Model Portfolio Highlights
For Model Portfolio Performance information please visit here (updated quarterly).
Growth Portfolio
This month we bought two Canadian energy stocks in the Growth Portfolio, Imperial Oil and Canadian Natural Resources. Canadian energy stocks are accelerating their recovery as the economy reopens and demand for all types of energy products increases. Notably, the drilling rig count (the number of operating oil rigs) has only seen a meager recovery over the last few months, in contrast to faster moving oil prices. This could indicate even higher energy prices ahead as North American supply comes on at a slower pace than demand.
American Growth Portfolio
In the American Growth Portfolio we continued with the same themes driving overall market performance: energy and banks. Both of these sectors are highly dependent on economic growth and tend to do well coming out of recessions. We recently added Texas’ EOG Resources to the portfolio, along with the Cleveland bank KeyCorp, lifting our financials exposure to a 25% weight in the portfolio.
Income Portfolio
The recent purchases of our Canadian and US dividend stocks were well-timed. The Income Portfolio finished the month over 7% higher as I write this. I anticipate this is only the start of a broad rotation of money out of the market’s more expensive sectors, like tech, into cheaper ones, like dividends.
Small Cap Portfolio
In the small cap portfolio we recently bought shares in two Canadian asset management companies, Cymbria and Clairvest. Cymbria is the parent company of a well-regarded fund manager, while Clairvest operates in private equity. Both companies benefit from rising markets that increase their portfolio values and hence their management fee revenues and, in some cases, performance fees. Both stocks are moving into new high territory after years of sideways trading, usually a good sign of uptrends ahead.
Across all portfolios I 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.
The Reading List
Last month’s most popular articles:
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: bwk@wprivate.ca
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.
Market Commentary
April 2021 Update
It is on the strength of observation and reflection that one finds a way. So we must dig and delve unceasingly. – Claude Monet
Markets
I am pleased to report all model portfolios finished higher in March. And after what’s been a raucous year, I am equally pleased to report March was relatively quiet in terms of news.
Many of the themes we’ve been anticipating are now coming to pass: the economy is reopening, inflationary pressures continue, public sentiment is improving, and we are making our way back to a feeling of normal. The companies in our model portfolios reflect these important trends and are well-positioned to capitalize on the flow. I anticipate that as long as interest rates don’t get too high, the market can stay in this mode for quite some time, delivering gains to more value-conscious investors like ourselves.
New Videos
https://www.youtube.com/watch?v=eMKjOL82-XM
Portfolio Manager Ben Kizemchuk talks about how demographic changes are driving investment outcomes, the battle between inflation and deflation, why stocks and volatility are both likely to increase, and how to take advantage of central bank policy.
https://www.youtube.com/watch?v=MG2av-NtoiY
Portfolio Manager Ben Kizemchuk reviews the Growth Portfolio, and recent investments in Canadian Banks TD and Royal Bank. Ben discusses how interest rates and fiscal policy have improved the outlook for banks over the last year.
Model Portfolio Highlights
For Model Portfolio Performance information please visit here (updated quarterly).
Growth Portfolio
This month we bought two Canadian energy stocks in the Growth Portfolio, Imperial Oil and Canadian Natural Resources. Canadian energy stocks are accelerating their recovery as the economy reopens and demand for all types of energy products increases. Notably, the drilling rig count (the number of operating oil rigs) has only seen a meager recovery over the last few months, in contrast to faster moving oil prices. This could indicate even higher energy prices ahead as North American supply comes on at a slower pace than demand.
American Growth Portfolio
In the American Growth Portfolio we continued with the same themes driving overall market performance: energy and banks. Both of these sectors are highly dependent on economic growth and tend to do well coming out of recessions. We recently added Texas’ EOG Resources to the portfolio, along with the Cleveland bank KeyCorp, lifting our financials exposure to a 25% weight in the portfolio.
Income Portfolio
The recent purchases of our Canadian and US dividend stocks were well-timed. The Income Portfolio finished the month over 7% higher as I write this. I anticipate this is only the start of a broad rotation of money out of the market’s more expensive sectors, like tech, into cheaper ones, like dividends.
Small Cap Portfolio
In the small cap portfolio we recently bought shares in two Canadian asset management companies, Cymbria and Clairvest. Cymbria is the parent company of a well-regarded fund manager, while Clairvest operates in private equity. Both companies benefit from rising markets that increase their portfolio values and hence their management fee revenues and, in some cases, performance fees. Both stocks are moving into new high territory after years of sideways trading, usually a good sign of uptrends ahead.
Across all portfolios I 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.
The Reading List
Last month’s most popular articles:
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: bwk@wprivate.ca
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.
Recent Posts
December 2024 Update
If you’d like to add friends or family to this email list, please sign up
November 2024 Update
If you’d like to add friends or family to this email list, please sign up
October 2024 Update
Join the mailing list here The Growth and Income model portfolios performed well in September,
September 2024 Update
Join the mailing list here We are pleased to report that our Growth and Income
GDPNow: Shaping Perceptions and Influencing Markets
Join the mailing list here Today we are witnessing a cultural shift where institutional authority
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.