Looking back to the beginning of Q3 2014, investors had basked in an incredible run in the U.S. markets and were being rewarded locally due to triple-digit oil prices and substantial movement within the energy sector; but what did investors do with those earning?
Over the past three and five year periods, the international markets have considerably outperformed the Canadian market; and as a result, investors who took advantage of this notion benefited in the face of depressed commodity prices, a large correction in the energy sector, and a substantially weakened Canadian dollar.
This month we wanted to highlight one of our Canadian companies. We discuss why we decided to buy their stock for our portfolios and why we continue to own it today. This low-key company is not a household name, but almost every adult in Canada.
Kraft announced a merger with H.J. Heinz Co., which is owned by 3G Capital and Berkshire Hathaway. This new company, called Kraft Heinz Co., is the fifth-largest food and beverage company. As a result of this development, Kraft’s stock price went up by over 30%.
As part of the National People's Congress (NPC) meetings, it was announced that the Chinese government will allow local governments to swap as much as CNY 1 trillion in high yielding debt into government bonds.
Over the weekend, the People’s Bank of China (PBOC) announced interest rate cuts of 25bps in both benchmark lending and deposit rates. Though the rate cut came as no coincidence with the slowing of China's economy, the surprise was in the timing - it was much sooner than anticipated.
Given some recent news, investors seeking diversification outside of Canada may want to consider Europe as a market worth having exposure to.
The new year is an ideal time to reflect on the year that was, and better prepare yourself for the year ahead. One of the realities investors must accept is that when it comes to investing, there are many things out of your control. However, there are many things that you can control.
Once again, Greece will dominate many of the headlines as they prepare for their national elections. We feel that Greece will undoubtedly stay in the Euro regardless of who wins the election.
There are two major forces in play right now: lower oil prices and a continued weakened Euro. Both of these forces can be viewed as positives for certain countries, and certain sectors and companies.