Posted on May 30th, 2013 by Barry Schwartz

What do you get when you combine record corporate profits, a record high stock market, a threat of a taper and no inflation? The end of zero interest rates. Let me begin by telling you that rising interest rates are not such a bad thing. Rising interest rates typically accompany an improving economy: more jobs, […]

Posted on May 13th, 2013 by David Baskin

There have been a number of stories in the press in the last month speculating that the major Canadian banks are in danger of suffering the kind of melt-down that almost destroyed the American banking industry in 2008.  The boom in Canadian home prices, so goes the argument, has left the banks exposed to risky […]

Posted on April 29th, 2013 by Barry Schwartz

You can’t say that stocks are at all-time highs. Adjusted for inflation, the S&P 500 is 25% below its previous peak over 13 years ago. You can say that stocks are cheap, given that earnings on the S&P 500 are double what they were 13 years ago (even adjusted for inflation). You can’t just put […]

Posted on April 16th, 2013 by Barry Schwartz

Normally, I would suggest that you run away from a cannibal but a stock cannibal is one you should embrace. In a recent interview, Charlie Munger suggested that one key to investment success is to look at cannibals — businesses that consistently buy back their own shares. A company that aggressively buys back its own […]

Posted on April 3rd, 2013 by David Baskin

Pundits are once again commenting on the difference in performance between the Canadian and American markets, and no wonder.  Since the market bottom four years ago, the S&P 500 has gained 136%, while the TSX has risen 70%, only about half as much.  Why the big difference, and what, if anything, should we do about […]

Posted on March 15th, 2013 by Barry Schwartz

Over the past few days, I have had a number of people tell me that the market is overheated and they are waiting for a pullback or a correction to get in. If only I had a dollar for every time someone told me that… I wonder if those are the same people who were […]