DM Monthly Report – May 2019
IS THERE A RELATIONSHIP BETWEEN INTERST RATES & STOCK VALUATIONS? In last month’s missive, we tackled the topic of persistently low interest rates and gave our theories as to why yields have not tracked the significant economic recovery from the depths of 2009. Understandably, this anemic backdrop imparts a direct impact on expected bond performance, but should it also influence how we think about stocks? In a recent interview, Warren Buffet said, “I think stocks are ridiculously cheap, if you think that 3% on 30-year treasury bonds makes sense”. Buffet wasn’t saying that corporate earnings are about to explode or that companies are going to double their dividend payouts, but was instead suggesting that relative to their primary alternative, the expected return for stocks (and hence their current valuation) looks compelling.
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Cardinal Quarterly – April 2019
MARKET OUTLOOK – After falling close to 20% in December 2018, most developed markets have experienced a V-shaped recovery and are approaching record highs. A change in interest rate policy from Central Banks has probably been the biggest factor behind the change in sentiment. Coming into the fourth quarter of 2018, the Federal Reserve seemed intent on pushing short term rates higher to guard against higher inflation in 2019 and beyond. However, inflation has remained weak, as it has for most of the past decade, bolstering the argument for continued low interest rates through 2019.
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DM – Q1 Portfolio Commentary
Is this bull ready for pasture? Ten years ago, almost to the day, stocks began a prodigious ascent that has been unceremoniously dubbed “the most hated bull market of all time”. A sluggish and patchy economic recovery, expanded involvement of central banks in financial markets and, of course, the long shadow of the global financial crisis have all conspired to darken what should have been a glorious time for equity investors. If stocks climb a wall of worry, as investing lore would have it, then they’ve been forced to scale a rampart that even an ardent border blockader would have to admire.
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Prepare Your Kids for the Real World by Turning Monthly Bills into Lessons
By, Carla Hindman, Director of Financial Education, Visa Canada
When you’re a kid, a few dollars can seem like all the money in the world. It can take weeks, sometimes months, to save up your allowance. When you finally decide to spend it, you might realize that $10 or $20 isn’t as much as it seems.
As a parent, you can help your children build important money management skills by providing experiences for them at a young age. Leading by example is a good way to start, and it can help instill good values and money habits. However, you’ll also want your children to get their hands dirty. Read more 
