DM Portfolio Commentary – Q3 2022
The most renowned investor of them all once said, “I never have an opinion about the market because it wouldn’t be any good, and it might interfere with the opinions we have that are good. If we’re right about a business, if we think a business is attractive, it would be very foolish for us to not take action on it because we thought something about what the market was going to do.”
While most individuals understand that durable investment portfolios are the product of patience and focus such as that described above, the temptation to “do something” when the news cycle turns negative, and stocks react can become excruciatingly difficult to resist. For most of this year, we’ve found ourselves mired in one of these mettle testing environments, as a generational spike in inflation and an accompanying surge in interest rates has pummeled the interim values of virtually all assets. The investor who hasn’t fretted over his or her portfolio at some point in 2022, or wondered if previously laid financial plans remain valid, likely doesn’t exist.
Click here to read more: DM Portfolio Commentary – Q3 2022
Cardinal Update – Sept 2022
You Can Bank on Dividends – It’s during periods of inflation where suddenly the non-dividend believers start asking questions like: “What should I invest in with high inflation?” or “How can I keep my standard of living through retirement?” These are questions that Cardinal clients tend to ask far less than their non-Cardinal neighbors. That’s because the power of dividends has been a mantra repeated here since the founding of the firm, just 30 years ago.
The company focus in this month’s update is on Siemens. One of our internationally-based dividend growers, Siemens is a global leader in industrial software and automation, and also medical imaging equipment on the healthcare front.
Click here to read more: Cardinal Update – September 2022
Cardinal Quarterly – July 2022
June 2022 Market Outlook – The first six months of 2022 was the worst start to a year for stock markets in the past half-century. Clearly, the war in Ukraine and Covid lockdowns in China have not helped.
The greatest concern, however, is that central banks will raise interest rates too high and cause a recession as they combat inflation. Judging by the plummeting prices of economically-sensitive stocks, such as Paypal and Shopify, the market is now pricing in a high probability of a recession within the next year.
Click here to read more: Cardinal Quarterly – July 2022
DM Monthly Report – May 2022
INFLATION, INTEREST RATES, AND STOCKS – As everyone knows well by now, the equity market has been presented with much to worry about in a very short space of time. Paramount among concerns is surging inflation, which is almost certainly a by-product of the extraordinary conditions brought about by the Covid crisis and which is definitely being exacerbated by the war in Ukraine.
Inflation on its own, however, is not necessarily perilous for a business and companies that can boost selling prices for their products and services by more than input costs are rising may even thrive in such an environment. Instead, it’s the eventual jump in interest rates that most often trips up stock prices in an inflationary environment.
Click here to read more: DM Monthly Report – May 2022
