How Much Can You Bear?

In last week’s edition of Sagacious, we explored the rationale for shifting away from a traditional balanced portfolio (60 percent equities, 40 percent fixed income) based on recent comments from Dr. Jeremy Siegel, a finance professor at Wharton. However, just because a portfolio may be deemed efficient, doesn’t mean that it’s necessarily right for all…

Good Old Faithful, or Just Old?

The popular 60/40 balanced portfolio (60% equities, 40% fixed income) has been a staple for many investors through their lifetimes and deservingly so. According to a recent piece by M. Batnick, 60/40 portfolios have boasted an annualized rate of return of 7.5% and positive rolling five-year returns in 99.4% of cases over the past half…

What is Driving the Surge of Interest in Stocks?

Whether it’s from speaking to friends and family or browsing social media feeds, it’s easy to see that there is a renewed interest in the stock market among retail investors. At first glance, having more people interested in their personal finance and investing in financial markets seems like a very positive thing. However, after closer…

Some Things Never Change

As humanity emerges from the most recent crisis, we will read about how things have forever changed. People will write about the impact on how we work, commute, interact, and shop, as well as how the economy and markets will be affected. One thing that will remain constant, however, is human behaviour. Morgan Housel shares his…

I’m Smarter Than You

Over recent weeks, the recovery of equity markets has left many scratching their heads. In particular, some distressed companies, such as Hertz (NYSE: HTZ) and Chesapeake Energy Corp. (NYSE: CHK), have experienced monumental gains after releases of negative news. A recent piece out of the Wall Street Journal explores how the overconfidence of investors contributes…

Your Guess Is as Good as Mine

From February 19th to March 23rd, the S&P 500 plummeted -34 percent. From March 23rd until time of composition, the same index climbed approximately 50 percent. Do not confuse this as a net gain. (Refer to our blog series on risk and volatility for how path dependency is important for the geometric compounding of investment…

Active or Passive? Find Out With This Barometer

In the world of investment management, the hotly debated topic of active versus passive is ubiquitous. Managers that have built careers selecting individual securities with the hope of beating passively-managed, and often lower-cost, index funds have been coming under fire as more and more data becomes available showing just how difficult this task really is….

Know Thyself

The current whipsaw action of markets has resulted in a wide spectrum of forecasts ranging from a V-shaped recovery to the erosion of economies resulting in a prolonged recession. With forecasts abound, famed investor, Howard Marks, tackled this topic in his most recent memo. Mr. Marks notes one shock event is enough to throw forecasts…

The Intricacies of Commodity ETFs

The collapse of oil prices in mid-April garnered quite a bit of media attention given that oil traded (and settled) in negative territory on April 20th. One of the main catalysts for this historic day was the fact that storage in Cushing, Oklahoma – where physical delivery of oil takes place – was scarce. To…

Preparation vs. Prediction

After a precipitous decline from February 19th to March 23rd, equity markets have rebounded significantly. Simultaneously, oil prices and volatility have experienced extreme fluctuations, central banks are implementing waves of stimulus, and governments are considering the relaxation of social distancing restrictions. This leaves many investors, including the famed and veteran varieties, unsure on a path…