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July proved to be another strong month for the stock market, as stocks continued their upward trajectory, with the S&P 500 Index now standing just 5% below its all-time highs. The market’s performance has been particularly encouraging, as what initially began as a rally in a few major stocks earlier this year has now broadened out to encompass a significant portion of the market, with over 70% of U.S.-listed stocks currently trading above their 50-day average price. Such widespread strength is historically seen as a positive indicator for the durability of new bull markets.
The market dynamics are further supported by the ongoing catch-up of smaller companies, which have been gaining ground and closing the gap with their larger counterparts. As a result, we believe that more active investment strategies are likely to experience accelerated gains heading into the year-end.
A noteworthy statistic to consider is that the S&P 500 is now on track to achieve five consecutive months of gains as of July’s month-end. Historically, in 26 out of 28 instances since 1954 where similar runs were observed, stocks continued to see positive momentum, ending on average 12.5% higher a year later. This historical context bolsters our confidence in the potential for continued growth.
It is evident that bullish sentiment is prevailing in the market, as investors are increasingly putting their cash to work. Bull markets are inherently driven by optimistic and confident investors, and the current climate appears to be fully embracing this trend.
Given the prevailing market conditions and the positive indicators we have highlighted, our outlook remains optimistic. We anticipate that stocks will continue to trend higher as we move into the year-end. We are pleased with the performance of our portfolios in the context of the prevailing market trends. As always, we will continue to carefully assess market conditions and make adjustments as needed to maximize potential returns while managing risk effectively.
Model Portfolio Highlights
Growth Portfolio
We made no changes to the holdings in July.
American Growth Portfolio
We made no changes to the holdings in July.
Income Portfolio
We made no changes to the holdings in July.
Small Cap Portfolio
We made no changes to the holdings in July.
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. If you’d like to add a friend or family to this email list, please let me know. 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@wellington-altus.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
August 2023 Update
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July proved to be another strong month for the stock market, as stocks continued their upward trajectory, with the S&P 500 Index now standing just 5% below its all-time highs. The market’s performance has been particularly encouraging, as what initially began as a rally in a few major stocks earlier this year has now broadened out to encompass a significant portion of the market, with over 70% of U.S.-listed stocks currently trading above their 50-day average price. Such widespread strength is historically seen as a positive indicator for the durability of new bull markets.
The market dynamics are further supported by the ongoing catch-up of smaller companies, which have been gaining ground and closing the gap with their larger counterparts. As a result, we believe that more active investment strategies are likely to experience accelerated gains heading into the year-end.
A noteworthy statistic to consider is that the S&P 500 is now on track to achieve five consecutive months of gains as of July’s month-end. Historically, in 26 out of 28 instances since 1954 where similar runs were observed, stocks continued to see positive momentum, ending on average 12.5% higher a year later. This historical context bolsters our confidence in the potential for continued growth.
It is evident that bullish sentiment is prevailing in the market, as investors are increasingly putting their cash to work. Bull markets are inherently driven by optimistic and confident investors, and the current climate appears to be fully embracing this trend.
Given the prevailing market conditions and the positive indicators we have highlighted, our outlook remains optimistic. We anticipate that stocks will continue to trend higher as we move into the year-end. We are pleased with the performance of our portfolios in the context of the prevailing market trends. As always, we will continue to carefully assess market conditions and make adjustments as needed to maximize potential returns while managing risk effectively.
Model Portfolio Highlights
Growth Portfolio
We made no changes to the holdings in July.
American Growth Portfolio
We made no changes to the holdings in July.
Income Portfolio
We made no changes to the holdings in July.
Small Cap Portfolio
We made no changes to the holdings in July.
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. If you’d like to add a friend or family to this email list, please let me know. 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@wellington-altus.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.
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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.