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INTRODUCTION

“Successful investing is about managing risk, not avoiding it.” – Benjamin Graham

A year ago, we were contemplating whether the economy was heading towards recession, driven by tit-for-tat tariff increases resulting from the U.S. and China’s trade negotiations. Many investors were questioning if the bull market that began in 2009 was over and if the 20% correction in the S&P 500 was the start of something much worse in 2019.

We now know that it was ultimately a buying opportunity and that the market was far too pessimistic about the economy. We also know that it is important to ride out downturns in the market and even increase our exposure to equities when the market goes “on sale”. After bottoming on Christmas Eve day, the SPY (S&P 500 ETF) went on to return almost 40% through the end of 2019. [Read more…] about Q4 2019 Investment Letter

INTRODUCTION

“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.” – George Soros

Everywhere we turn there are postulations and predictions of how we are heading into a recession and how the market is poised for a crash. While there are a number of unsettling developments in the areas of politics, the economy and demographics, it is important to remember that the market is forward looking and discounts what is expected. [Read more…] about Q3 2019 Investment Letter

INTRODUCTION

Investing with a long-term focus has consistently been a successful strategy for wealth creation.  Most people would not disagree with this point, yet we constantly find ourselves questioning what the market is going to do over the next few weeks or months.  With the financial media and an increasing number of bloggers focused on attracting eyeballs to their websites, the number of sensational stories and “doomsday” predictions has proliferated.  Do not fall into their trap.  Even a broken clock is correct twice a day. [Read more…] about Q2 2019 Investment letter

INTRODUCTION

There has been a lot of talk about how the structure of the financial market has changed in recent years. The size and magnitude of the correction and subsequent recovery of the equity market over the last few months reinforces that view. [Read more…] about Q1 2019 Investment Letter