McMurtry Investment Report & Model Portfolios

Why are copper prices still rising?

April 15, 2024 Why are copper prices rising in a period of continuing strength in the US dollar globally and higher for longer interest rates? Most of you are familiar with the Wall Street algorithm that pushes commodity prices down when interest rates and the US dollar remain at elevated ;levels. Copper prices are rising… Continue reading Why are copper prices still rising?

US monthly CPI numbers hotter than expected

April 10, 2024 Nominal m/m CPI 0.40% vs 0.30% expected Nominal y/y CPI 3.50% vs 3.40% expected Core CPI m/m 0.40% vs 0.30% expected Core CPI y/y 3.80% vs 3.70% expected My recent reduction in both equities and bonds in my Model Portfolios was a result of my concern that domestic US inflation would not… Continue reading US monthly CPI numbers hotter than expected

What is a Value Trap?

April 7, 2024 Looks cheap on a P/E, P/Book Value and on a EV/FWD EBITDA basis Stock may have a high dividend yield Company comes up as an attractive purchase on a stock screen due to cheap valuation Reality: Free Cash Flow does not cover the dividend Highly levered balance sheet Highly competitive industry Low… Continue reading What is a Value Trap?

Adding a new service – Hourly Investment Tutorials

March 20, 2023 I am now offering a new educational service to help investors learn how to manage their own capital. I am offering three packages- 3, 5 and 10 hour packages in 1 hour sessions by zoom call. Learn how to read financial statements to improve your investment returns Learn how individual bonds and… Continue reading Adding a new service – Hourly Investment Tutorials

CRA’s New Reporting Requirement for Bare Trusts- Reporting Deadline is the end of March

CRA is implementing new trust reporting requirements for T3 returns for Bare Trusts. The reporting deadline is the end of March and there are severe penalties for not reporting. CRA is being intentionally confusing about who has to report. My recommendation is to check with your accountant and to review CRA’s new reporting requirements for… Continue reading CRA’s New Reporting Requirement for Bare Trusts- Reporting Deadline is the end of March

Why do we sell a stock?

February 15, 2024 It is more difficult finding the rationale for selling a stock compared to buying a stock. There are several main reasons as follows: If a single stock goes up in value and now represents more than 10% of your total market value of equities, it is important to trim back your position… Continue reading Why do we sell a stock?

Favourable Outlook for both gold and copper

December 22, 2023 Yesterday the former CEO of Franco-Nevada, Pierre Lassonde,  was being interviewed on BNN. He was being questioned about his outlook for both gold and copper. In regards to gold specifically, he stated emphatically that gold  acts as the antithesis of the US dollar. Taking into account the probability of both inflation and… Continue reading Favourable Outlook for both gold and copper

Interest Rates have peaked. Reduce short term cash and extend bond maturities

December 5, 2023 Interest rates and inflation have peaked in the US. This has resulted in a peaking of the US dollar globally. Do not remain in short term cash.  Extend bond maturity as economy slows down. Despite their current yields, avoid investing in GIC’s. The lack of liquidity is a real problem and there… Continue reading Interest Rates have peaked. Reduce short term cash and extend bond maturities

Why do most buyers of low priced stocks lose money?

July 7, 2023 Stock Market Basics I recently purchased the 7th edition of Graham and Dodd’s Security Analysis. A quote from the book is very revealing. “Public buys issues that are sold to it, and the sales effort is put forward to benefit the seller and not the buyer”. Differing from what many investors believe,… Continue reading Why do most buyers of low priced stocks lose money?

Index Investing vs. Buying Individual Securities

June 28, 2023 In a bear market there is nowhere to hide in an index fund Fundamental valuation parameters that one normally uses to value individual companies are not nearly as transparent and available for index funds. Recommendation Use index funds for broad diversification and to invest sums of capital up to $10,000 Once you… Continue reading Index Investing vs. Buying Individual Securities