As with tradition, this is the last Ethos of the year and we are going to run down the most popular editions based on clicks/eyeballs. We would like to thank our readers for your continued attention and will continue to endeavor to provide context and insight for the ever-changing markets.
Cash vs GICs vs Bonds (26 Feb)
There have been some really big moves in cash over the past few years as yields moved higher. In this Ethos, with all three yielding about the same we discussed the pros/cons of cash (HISA), GICs and Bonds. It was really what happened next that would determine the right decision.
Carrymageddon (6 Aug)
For most of the past year, markets went up, but not in the early days of August when the yen carry trade was unwound by many market participants, leading to a sudden drop in the markets and a spike in volatility. Would also add this may have been our favourite pic/graphic from our talented marketing team.
Return of the Dividends (23 Sep)
The dividend factor really lagged broader markets during 2023 and the 1st half of 2024. With yields available everywhere, there is a lot more competition for income-oriented dollars. But the back half of 2024 certainly saw a comeback.
Our Worst Tilt of the Year (19 Jul)
In this self-deprecating Ethos, we dove into one of our worst portfolio tilts, being equal weight for a chunk of our U.S. equity exposure. It was more of an exploration as to the rationale and thinking behind this tilt.
Four More Years (11 Nov)
Not surprisingly, anything that talks about Trump seems to garner more eyeballs. We are in for a more exciting four years on the political side. This Ethos talked about starting points and how markets may be less reactionary; they do get used to this sort of thing.
Portfolio Playbook (9 Sep)
This one was kind of fun. Behind the scenes, we often contemplate various market scenarios. Of course, the markets are full of surprises, but this process helps ground our thinking, especially when markets become more volatile. Nobody plans to fail; many people fail to plan.
WHY (1 Apr)
This Ethos was a bit about a different report the expanded team creates – the WHY report. Ethos is more of a go-anywhere publication, with topics often driven by our readers. The WHY report is a monthly deck that provides rationales on most of our tilts in the multi-asset space. It is a window into our thinking and process. You can sign up HERE, if interested.
Energy’s Shifting Sands (26 Aug)
Energy is one more important sectors within the Canadian market. In this Ethos, Derek dove into providing context on the space and our thinking. At the time of writing, we believed the share prices had become a bit disconnected from the commodity prices and decided to reduce exposure in our dividend strategies.
Multi-Trillion-Dollar Questions (16 Sep)
With all those dollars that piled into cash vehicles and GICs, a potential tsunami of cash was now sitting on the sidelines. In this post, we discuss our thinking as to where some of the cash may migrate as central banks reduce overnight rates and how much of it may never be bound for markets.
Value in the Canadian Dollar (15 Apr)
At the time, with CAD trading at 72 ½ cents, we highlighted our overarching view that U.S. assets should not be hedged. The USD is often a safe haven asset, providing a good diversifier for Canadian portfolios. However, that conviction was starting to wane, given the weakness in CAD. Well, fast forward to today, with CAD just below 70 cents, it is getting really cheap now.
Thanks again for reading and the support over the year. Enjoy the holidays from your Market Ethos team.
— Craig Basinger, Derek Benedet and Brett Gustafson
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Sources: Charts are sourced to Bloomberg L. P.
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