Cardinal Capital – August Update

North Korea – What Should An Investor Do?

• We are all worried about the current standoff with North Korea. Kim Jong-Un took over as Leader of North Korea in 2011 and has launched 17 missile tests in 2017 alone; more tests than in 20 years from 1991 to 2011 before he took charge. The problem is that North Korean missile technology has improved enormously in the past few years versus previous decades when it was common to hear the country announce a missile test only to have it fail to launch………
• The trouble with attempting to move to cash in advance of one of these events is that markets tend to start moving sharply higher well before the crisis in question is actually resolved. And of course, there is also the very real possibility that the situation does not get worse, in which case investors will likely drive the market higher in a relief rally. As an investor, doing nothing can feel like a difficult move, but history suggests it is the best move.

Click here to read more:  Cardinal Update – August 2017

Cardinal Quarterly – July 2017

MARKET OUTLOOK – The global economy continued to strengthen in the second quarter with Canada’s GDP leading the pack at 3.7%. The Canadian economy has been boosted by continued strength in the housing market, the weak Loonie, and decent economic growth in the U.S. The long-struggling European economy has also been showing signs of life after consistently weak growth for most of the past decade. Sooner or later, improving growth in the global economy will lead to higher inflation, which is causing most central banks to reconsider their loose monetary policies.

Click here to read more:  Cardinal Quarterly – July 2017

Provisus Monthly Insight – July 2017

COMMODITIES BOTTOM OUT – Typically, commodity prices go through longer bear market cycles compared to bull market cycles while the opposite is usually true for stock prices. While Canadian equity markets are slightly off the record highs set in February 2017, commodities, relatively speaking, are dirt cheap. In fact, they are basically the cheapest they have been since the all-time high was reached in June 2008. Commodity prices have fallen 56.9%, based upon the decline in the S&P GSCI Commodity Index over the past 9 years.

Click here to read more:  Monthly Insight – July 2017 – Commodities Bottom Out

DM Summer Newsletter 2017

FOCUS ON INTRINSIC GROWTH, LET PRICE FOLLOW – In presentations to clients and prospective clients, we spend significant time discussing company cash flow and why this metric is so important within our investment process. From our perspective, firms that are generating (and especially growing) excess cash have a relatively quantifiable intrinsic value and don’t require us to rely as much on possible future corporate developments for investment return, events which regularly fall short of market expectations.

Click here to read more:  DM-Monthly-Report-Summer-17