DM Monthly Report – Feb 2022

WHEAT & CHAFF – In our final portfolio commentary of 2021, we wondered aloud how certain market components would fare under a shifting monetary regime, in particular one where central bankers began to take back some of the liquidity they had released during the pandemic. Though we’ve so far experienced more talk than action in North America, with neither Canada nor the US having raised policy rates yet, even the prospect of tighter conditions seems to have ignited a reordering of asset valuations.

Click here to read more:  DM Monthly Report – February 2022

DM Monthly Report – January 2022

MARKETS WOBBLE TO START THE YEAR – WHAT TO DO? – After an unexpectedly strong 2021 campaign, stocks mostly limped out of the gate in January. It’s impossible to say whether the blame lies with inflation, that’s become decidedly more persistent than transitory; central bankers, who finally seem poised to reign in liquidity and raise interest rates; or simply the weight of probability, which would suggest that a nearly uninterrupted rise is probably due for some type of reset.

Portfolio Activity – Aside from rebalancing trades, in December we sold rail operator Union Pacific in DM Foreign Equity and used this capital to open a new position in Methanex Corp.

Feature Stock – Microsoft Inc. (MSFT) – MSFT shares made another big contribution to DM performance in 2021, gaining more than 50% for the year.

Click here to read more:  DM Monthly Report – January 2022

Cardinal Quarterly – January 2022

Market Outlook – Consumers Poised to Drive Market Returns in 2022 – Global stock markets hit record highs at the end of 2021, fueled by the strongest GDP and corporate earnings growth in decades. There’s no debate about the source of this growth. Since the start of the pandemic nearly two years ago, governments around the world have unleashed nearly $15 trillion in global stimulus spending to offset the negative impact of COVID-19 lockdowns. Although the benefits of stimulus spending have not been spread out evenly, consumers are poised to provide a considerable boost as they’re currently sitting on record bank deposits, lower debt and strong wage increases. 

• Our outlook for Cardinal portfolios in 2022 is for returns in the 15 per cent to 20 per cent range, although they are somewhat less optimistic for the overall market.

Click here to read more:  Cardinal Quarterly – January 2022

DM – Q4 Portfolio Commentary

2022 begins with much to consider – During what’s normally one of the quieter parts of the calendar for market news, the closing weeks of 2021 introduced at least three significant developments for investors to contemplate, each adding nuance to the inflation story that had already come to dominate financial headlines. First came the detection of the “omicron” covid variant in South Africa and its subsequent sprint around the globe; next was the press conference held by US Federal Reserve Chairman, Jay Powell, during which he left little doubt that the days of ultra-easy money in the world’s most important economy will soon be past; and, finally, there was the decision by a swing-vote US Senator to reject the administration’s multi-trillion dollar “Build-Back-Better” stimulus package.

Click here to read more:  DM Portfolio Commentary – Q4 2021