Written by Senior Portfolio Manager, Michael Hakes, CFA, MBA.
Not Your Average Growth Stock
We recently added Target to the Global Growth portfolio at a 2% weight. The stock has pulled back from its high of $260 in late 2021 and is now trading around $110. Target is not a typical growth company per se as it is a mature retailer in a competitive market. We believe, however, there is the potential for substantial cyclical recovery over the next 12-18 months. As part of our risk control process, we monitor the overall characteristics of the portfolio to ensure it continues to maintain a strong secular growth profile. Read
Thoughts on the Market: September Edition
Written by Head of Research, Jamie Murray, CFA
September continues to be a brutal month for equities as markets fell globally despite data that indicates strong GDP growth in the U.S. Workforce participation rates are normalizing leading to continued gains in employment but also loosening the labour market. This is leading to a slowing of wage growth. This combined with larger output volumes should slow inflationary pricing pressures but also lead to better profit margins. There is still a classic inventory correction recession in our near future once output catches up to the excess demand created during the pandemic shutdown, we would expect this to be the catalyst for the global central banks to neutralize anti-inflation policies. We believe the stock markets of the world will rally on this looking forward to a stabilized productivity driven economy with the opportunity of strong profit growth. In the short term, interest rates will continue to dominate the market narrative.
Whitecap Resources dollar cost averaging into its inventory.
Dollar cost averaging (DCA) is a simple investment strategy first coined by Benjamin Graham in his book The Intelligent Investor. A DCA strategy calls for investing an equal dollar amount every period, which helps diversify the purchase price (or book value) of an investment. It reduces the effect of market timing and ensures new purchases are made throughout the investment cycle. It has been shown to be an effective strategy for generating steady long-term returns when used consistently. Read