Cardinal Quarterly – April 2023
March 2023 Market Outlook – Despite some surprising bank failures in the U.S. and Europe and another interest rate hike from the U.S. Federal Reserve, most developed market indices moved higher in the first quarter. Inflation, the most important factor, has continued to fall and employment has remained strong. The Chinese economy also looks set to post strong GDP growth now that it has reopened from COVID-19 lockdowns. We continue to remain positive on stock market returns in 2023.
Cardinal Rule #11: STAY BALANCED – It’s easy to look at the long history of stocks that have gone to the moon and
kick yourself for not going all-in when you had the chance.
Click here to read more: Cardinal Quarterly – April 2023
DM Portfolio Commentary – March 2023
March Madness – Though October has long been regarded as the most treacherous month for stock investors, it may be time for March to claim that dubious title. So far in this young millennium, the vernal equinox has coincided with the popping of the dot-com bubble, the final market plunge of the Great Financial Crisis, the covid crash, and now a burst of bank failures. As it stands, we might all be better off if the investing calendar comprised only 11 months!
Focus has also recently shifted from inflation and interest rates to the financial system, with notable events like the collapse of Silicon Valley Bank and Credit Suisse’s merger with UBS. In this note, we aim to answer some of the questions that might have come to mind as you think about your portfolio and family wealth in light of recent news.
Click here to read more: DM Portfolio Commentary – March 2023
DM Monthly Report – March 2023
VPI Balanced Pool Wins Industry Award – for 5th straight year – In late 2007, Value Partners Investments launched its VPI Canadian Balanced Pool and hired DM as the mandate’s sole manager. In VPI’s words, the intent of the fund was to “deliver long-term capital appreciation and income generation by investing primarily in large, medium, and small companies that generate sustainable cash flow, are operated by competent management teams, and have track records of wealth creation. The portfolio manager will also purchase fixed income securities that provide attractive returns through both capital appreciation and interest payments.”
Click here to read more: DM Monthly Report -March 2023
DM Commentary on US Bank Failure – March 2023
Slowly, then all at once – At the end of last week, the 16th largest bank in the US, Silicon Valley Bank, was shut down by regulators when it became clear that it wouldn’t be able to stem a run on deposits. Rumors had been swirling for some time that SVB was headed toward (if not already in) violation of its regulatory capital requirements, which was precipitated by a significant duration mismatch between its liability book – i.e. customer deposits – and its asset base, represented primarily by mortgages purchased near the top of the fixed income market.
Click here to read more: DM Commentary – US Banking Update – Mar 2023
