REDWOOD BLOG | Sep 5, 2017

The Great ETF Bubble?

It may not be an ETF bubble, but exchange traded funds appear to be causing some distortions in the market Exchange traded funds have gained in popularity over the past few decades as a great investment vehicle to get broad market exposure at a very attractive price point. This has greatly aided investors paying lower fees, […]

REDWOOD BLOG | Aug 29, 2017

Fundamentals – the Good and the Bad

Markets calmed down last week after seeing a brief return of volatility that certainly raised some eyebrows. One aspect that has provided stability despite higher geopolitical risks has been the underlying company fundamentals. We are coming off one of the better earnings seasons for the S&P 500 that we have seen in some time. While valuations […]

REDWOOD BLOG | Aug 21, 2017

Market Cycle – How to Use It

Few would disagree that there is a lot to worry about these days. Venezuela appears to be on the edge of collapse. North Korea tensions have been on the rise, only to fade in part thanks to rising civil unrest in the United States. If you thought the U.S. government was dysfunctional during President Obama’s […]

REDWOOD BLOG | Aug 15, 2017

Investors Behaving Irrationally

The essence of money management can be encapsulated in searching for investments that are trading below their intrinsic value. That is, buying these companies low, and as the market comes to realize their intrinsic value, the price moves higher. This is the activity of price discovery, and makes for a healthy market as participants buy […]

REDWOOD BLOG | Aug 8, 2017

Charts for the Beach– 2017

It’s time for our annual August report called “Charts for the beach.” Take a look at five of our favorite charts that highlight what we think consensus is currently missing. Remember to wear your official RBA baseball cap while sitting in the sun!   An example of why you should ignore politics We have repeatedly […]

REDWOOD BLOG | Aug 8, 2017

Currency: Unhedged

Currency has clearly become a hot topic over the past few months as the loonie rose materially against the U.S. dollar, bucking a multi-year trend. We visited this topic a number of times recently including reports titled Oil, C$ & Yields and Has the C$ Turned?. In this edition of Ethos, we will revisit our expectations and […]

REDWOOD BLOG | Aug 1, 2017

Why We’re Bullish on Emerging Markets

Year to date, emerging market equities have continued their strong performance, with the MSCI Emerging Markets NR Index up 17.01% (CAD) (as at July 31, 2017). In fact, as markets continue to improve, so does our certainty that the lows seen in January/February 2016 represent the end of a lengthy bear market for EMs, and […]

REDWOOD BLOG | Jul 31, 2017

Herd Behavior in Investing

The human species learned long, long ago that sticking together is a good thing. During our evolution, larger numbers provided safety from predatory animals and other groups of humans. While this may sound abstract today given the lack of dangerous animals looking to make a meal of us, herd behavior is alive and well, based […]

REDWOOD BLOG | Jul 24, 2017

Changing Consumer Behaviours

The way we spend our time and money is changing. Selfies are a new form of ‘art’ work. More communication is done with emojis and “worser” grammar than ever before. Shopping continues to move out of the mall to your phone. The only certainty is that change will continue. Your favorite activities, brands and social networks […]

REDWOOD BLOG | Jul 18, 2017

The 3 Ps: politics, profits, and probabilities

Fundamentals, not headlines, ultimately drive financial markets. Although it is always tempting to listen to the news, successful investing depends (perhaps more than ever) on a dispassionate review of fundamentals. We’ve attempted to sift through the current noise to highlight what we think is important and not, and summarized them as “The Three Ps” of […]