Outlook

There are lots of things we, as professional investors, cannot control. We cannot make Russia behave, although we wish we could. We cannot make the economy stronger, although it seems to be doing that by itself.

Many of our clients are concerned about the world situation, the stock market and the impact on their investments. This video will let you know how we are viewing the current moment, and what we intend to do (and not do).

January was the worst month for U.S. stock markets since the start of the pandemic in early 2020. While the TSX was buoyed up by strong commodity prices, the S&P 500 fell by 5.3% and the NASDAQ fell by 9%.  It is not unusual for markets to retrace gains made in strong periods, and there is no doubt that since the markets bottomed in April 2020, this has been a very strong period indeed.

If you were not surprised by the markets in 2021, you were not paying attention. At the start of 2021 nobody expected a second consecutive year of great stock market gains. Nobody expected record low unemployment, or rising (and still rising) housing prices, or that inflation would increase at rates not seen in thirty or more years. We at Baskin Wealth Management were as surprised as everyone else; pleasantly so, in this case, but we know that not all surprises are nice ones. As I settle into my new role as Chairman of Baskin Wealth Management, I would like to share four lessons I have learned from my thirty years as a professional investor. I think they can help to make you a happier, more confident, and more successful investor.

On Thursday, December 2, David conducted our first virtual Outlook event where he discussed the current inflationary environment touching on the causes, whether we should we be concerned or not and what we are doing about it. If you were not able to attend, or did and would like a recap, we have attached a recording of the event as well as a copy of David’s slides with notes.

On Thursday, December 2, David conducted our first virtual Outlook event where he discussed the current inflationary environment touching on the causes, whether you should be concerned or not and what we are doing about it. Outlook 2022   Events [...]

David revisits a theme from earlier this year, discussing the difference between speculation and investing and how important it is to understand that these are very different from each other with very different rules and outcomes. He cites some well known examples of speculation in the market and reaffirms that our approach is about being a fundamentals based investor.

The American novelist Norman Mailer wrote: “There was that law of life, so cruel and so just, that one must grow or else pay more for remaining the same.”  At Baskin Wealth Management, we have chosen to grow. In this month’s newsletter, David discusses the recent succession planning changes made by us as we lay the foundation for the next twenty or thirty years ensuring we remain the high-touch, high-knowledge service that has built our business.

After a slow start to the year, the spring and summer months brought our clients hot weather and even hotter returns.This has resulted in many asking the natural questions - "How much higher can the markets go?" and "Shouldn't we be looking at taking profits?". In this month's newsletter, Barry talks about the source and sustainability of these returns and the best way to deal with uncertainty.

At the end of the day, earnings are what drive stock prices. Companies that make money, and particularly those that grow their earnings year after year, see the prices of their shares rise. Companies that lose money, no matter the amount of hype or publicity, ultimately see their shares fall. These twin truths are particularly important to remember in this year of “meme” stocks, crypto craziness and Robinhood retail empowerment.

The number of mutual funds and ETFs has grown steadily over the decades such that there are now far more mutual funds for sale than stocks traded. These products provide some benefits such as diversification for accounts under, say, $500,000, which is why we have recently launched 2 pool funds. However, for larger accounts, holding the individual securities remains our preferred approach. In this month’s article, David provides 7 reasons why we continue to emphasize this for our clients.

Other than vaccines, and more recently the Leafs, there is probably no hotter topic these days than housing prices. In this month’s newsletter, David provides some historical perspective on housing costs and some advice to those looking for a place to live now.