DM Monthly Report – Nov 2024
“NEW PRESIDENT, NEW MARKET” – With so few Americans left in the “middle”, the 2024 election was always going to be a polarizing event. And in the area that concerns us most — investment markets — the initial reaction was just as galvanizing, with the Dow leaping by more than 1500 points the day after votes were cast and soaring further in the sessions that followed.
FEATURE STOCK – Shopify INC. (SHOP) – As seems to be the case at least once a decade, SHOP (or rather our absence from SHOP) was previously the bane of DM Canadian Equity. Like Nortel, Research in Motion (aka Blackberry), and Vale ant Pharmaceuticals before it, SHOP was briefly the most valuable company in the TSX.
Click here to read more: DM Monthly Report – Nov 2024
Cardinal Update – November 2024
The Art of Doing Nothing – Staying the Course with Investments Through Both Turbulent and Calm Waters
We wanted to highlight the importance of avoiding knee-jerk reactions to unfavourable news headlines. Equity markets often fell immediately after events such as the start of the COVID-19 pandemic, but they always recovered and hit new highs. Stay the course and you’ll be rewarded.
COMPANY FOCUS: PEPSICO
PepsiCo owns some of the most beloved and well-known brands in the world, ranging from 7up and Gatorade to Doritos, Tostitos, and Lays. While most people know this multi-national behemoth for its namesake soda, only 40 per cent of the company’s revenue comes from its beverage division. The remaining 60 per cent coming from its snack side. It has raised its dividend every year for more than half a century.
Click here to read more: Cardinal Update – November 2024
Cardinal Q3 Newsletter – Oct 2024
The Running of The Bull Market Expands Beyond “The Magnificent Seven” – IT’S NO LONGER ALL ABOUT APPLE, MICROSOFT, AMAZON, ALPHABET, TESLA, META, AND NVIDIA
The Bull Market in equities roared higher in the third quarter with just about every major market index finishing in positive territory. We’re not surprised because the combination of falling interest rates, and a growing economy tends to be very positive for stocks. We expect both trends to continue over the next year, which should keep the Bull Market charging.
Click here to read more: Cardinal Quarterly Newsletter – Oct 2024
DM Monthly Report – Oct 2024
“IT’S THE ECONOMY, STUPID” – Those words were famously delivered to his charges by James Carville, Bill Clinton’s campaign strategist, as the 1992 race for the White House entered its final days. A year earlier, George HW Bush had enjoyed a 90% approval rating amongst Americans following the US military’s successful reversal of Iraq’s incursion into Kuwait; but now the economy had dipped into recession and household focus was shifting to the pocketbook.
FEATURE STOCK – Fortinet Inc. (FTNT) – In late August, we funded a new position in FTNT by selling homebuilder, DR Horton Inc. (DHI), which had more than doubled since our original purchase three years ago.
Click here to read more: DM Monthly Report – Oct 2024
