Cardinal Update – December 2020
The Great Adaptation of 2020 – 2020 has been an unprecedented year as the COVID-19 pandemic forced businesses to adapt to a rapidly changing environment.
Consumer-facing companies that rely on foot traffic in their stores have had to completely revamp their go-to-market
approach and investments have been made in e-commerce, curbside pickup, and delivery to ensure access to products for consumers.
COVID-19 has radically accelerated the digital transformation of retail and strong operators such as Canadian Tire and Alimentation
Couche-Tard have not only navigated the environment well, but are also stronger companies today than they were back in March.
Click here to read more: Cardinal Update – December 2020
DM Monthly Report – November 2020
WHAT WILL THE PANDENIC MEAN FOR ESG? – The widespread inclusion of environmental, social, and governance (ESG) factors in analytical models has been one of the most significant developments in investment management over the past decade and the current crisis may actually accelerate this push. Within the broad economy, a sharper focus on workplace safety and best practices, propelled by a vivid reminder of the connection between our health and our environment, could provide a positive legacy from an otherwise grueling year. At the same time, money managers will be increasingly asked to support and encourage this positive corporate behaviour.
Click here to read more: DM-Monthly-Report-Nov-20
DM Portfolio Commentary – Q3 2020
STOCK MARKET * ECONOMY – In what has already been one of the most jarring and upside-down years in modern investing history, it’s perhaps not surprising that both equity bulls and stock market bears have used variations of the same argument to justify their positions. Those who are positive on stocks, despite the recent plunge in economic activity, have regularly dismissed naysayers with the retort “the market and the economy are not the same thing”, while pessimists forecasting more trouble ahead warn that “stocks have become dangerously disconnected from the real economy”. Since both views are expressed frequently without much in the way of supporting evidence, we’ve devoted this commentary to examining their validity.
Click here to read more: DM-Portfolio-Commentary-Q3-20
Cardinal Update – August 2020
Strength That You Can Bank On – The current global crisis has created challenges for the broader economy, which in turn, has led to weakness in the share prices of Canadian banks. Coincidentally, Canadian bank shares recently traded down to lows last seen in the Global
Financial Crisis, which also represents the last period of great stress the Canadian banks have gone through. Despite reaching comparable valuation levels, we remain heartened by the position of strength the Canadian banks are in both on an absolute basis and in relative comparison to this period.
Click here to read more: Cardinal Update – August 2020
