DM Monthly Report – Sept 2019
ARE THE STOCKS IN YOUR PORTFOLIO A CONTRARIAN POSITION? It’s a curious thing. Even though publicly traded shares are a direct connection to the wildly successful free market system and the easiest way to grab a share of the wealth that has been and will be created by the capitalist economy, individuals are surprisingly ambivalent about owning them. In fact, the calls we get about stocks are often tinged with a trace of dread. If markets are up, people are skeptical about how long it’ll last and if they’re down, they worry that the dip is the beginning of something worse.
Click here to read more: DM-Monthly-Report-Sep-19
Cardinal Update – September 2019
Don’t Fear a Recession When You Have a Quality Portfolio: The “R Word” has been cropping up as of late, especially since the U.S. 2 year and 10 year yield curve inverted briefly. When you add this signal to the trade disputes, slowing global growth and various geopolitical events, it certainly raises the risk of a recession in the next year or two.
It’s not yet a done deal as employment remains strong, inflation is low and economic growth, while slowing, is still positive. There are also some unusual forces including the search for positive interest rates, central bank quantitative easing, flight to quality and aging demographics that are pushing longer-term interest rates down. But ignoring the warning signs can be perilous.
Click here to read more: Cardinal Update – September 2019
Which Term Life Insurance is Right for You?
Once you have decided on how much life insurance you need, your next decision is whether you are going to use term insurance or permanent insurance to provide it. For many Canadians, while permanent cash value life insurance offers a significant opportunity for them, many initially utilize renewable and convertible term life insurance. Most life companies in Canada offer 10-year, 20-year and 30-year renewable term policies. In deciding which one is right for you, attempt to match the need to the term. While 10-year term might have the lowest entry level cost, the renewal premiums will be significantly higher. If you have a young family, ask yourself, will I still need protection beyond the 10th year? If that answer is yes, then a longer renewal period is more appropriate.
In making your choice, it is important to understand how renewable term policies function. In Canada, the renewal of the coverage is automatic (unless you decide not to renew) and guaranteed. The premium on renewal, however, will increase dramatically. Anyone who has 10-year renewable term insurance, instead of renewing it, should re-write the policy for a new term period. Read more 
Cardinal Update – August 2019
What’s Weighing Down the Banks – Over the past year, the equal-weighted average total return of the Big Six Canadian banks has underperformed the broader TSX index.
Some of this underperformance if due to broader industry concerns, while the balance relates to name-specific concerns that have dragged down total returns.
Within the industry itself, Canadian housing, interest rates, and credit are the main areas of focus.
Click here to read more: Cardinal Update – August 2019
