Despite the “green shoots” we’ve pointed out in the Great White North, sooner or later, the torrid rally of the last three months must run out of gas. And at that point we’re going to see some of our recent gains evaporate, despite the fact that everything remains deeply undervalued. Read More

The most important numbers for Canadian Edge Portfolio recommendations are earnings. Canada’s trusts and high-yielding corporations still sell at steep discounts to their levels prior to the fall of Lehman Brothers last September, when the financial crisis hit in earnest. Solid earnings are the only real guarantee they’ll recover that lost ground. Read More

Erratic action was the only consistency for global markets in March 2009. The broad-based S&P/Toronto Stock Exchange Income Trust Index (SPRTCM) sold off sharply in early March, touched bottom on the 9th, rallied 23 percent, and then tailed off in the month’s last days. Its moves mirrored similar action in crude oil, as well as the Canadian dollar. Read More

Since this bear market began in summer 2007, my approach has been to stick with companies that have held together as businesses. The rationale is simply that if a company stands up to the stress tests amid this economic turmoil, it will recover its stock market losses in short order when macro conditions improve. And as for Canadian trusts of all varieties, we’ll continue to receive generous distributions while we wait. Read More

Remember, in times of turmoil, the hard numbers are your guide to that most important of all questions: Are your holdings’ underlying businesses still standing up to the stress tests behind this historic bear market. Only a “yes” justifies sticking with them. Read More

Pick any measure you like: The nearly 40 percent loss in the S&P 500, and greater losses in developing world markets; the junk bond meltdown; the crackup in commodity prices; the halving of oil prices; the implosion of the global financial system; or any one of a few dozen other once-unthinkable major disasters. Last year was easily the worst for the investment markets since the Great Depression of the 1930s. Read More

Tight credit markets and weakening global growth sent energy prices and the Canadian dollar plummeting in the second half of 2008. That took a big bite out of Canadian trusts. And even those that continued to post strong growth in cash flows and distributions weren’t spared. My bet for 2009 is we'll see many of those negative factors reverse. Read More

October was one of the most turbulent months in recent memory for the financial markets. Canadian securities were hit hard, but we've since seen some recovery. First-rate Canadian trusts and high dividend-paying corporations are still deeply undervalued, so the best course of action is to stick with those that continue to perform well as businesses. Read More

September was a challenging month for everyone. Some Canadian trusts and corporations have shown weakening in the face of the broader market's stress tests. But despite the third quarter selloff, we're still set for a fourth quarter comeback. And we have a new set of earnings reports forthcoming. Read More

Canadian trusts and corporations across all industries have been stress tested, forcing them to rely on their own resources as business conditions depress sales growth. But most have weathered the storm rather well, posting strong second quarter earnings, and look to continue growing into 2009. Read More