Hunting for Value

Sep 24, 2019 | Jeremy Goldfarb


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Contrary to popular belief, when markets are testing high water marks, that is an opportunity for investors to watch closely for a buying opportunity. A technical argument that we can discuss some other time.

 

I was reviewing some numbers recently and would like to share some of that information with you

  1. the TSX is up over 20% since the lows seen at the end of 2018, however....it's up only 2% since January of 2018. Not a big move over almost a 2 year period
  2. the S+P500 is up almost 11.5% over that same period
  3. The TSX is up a paltry 12% since the highs of 2008, while the S+P500 is up almost 114% over that same period
  4. The MSCI (International) is still 24% below it's 2007 high

So where is the value? Be careful with Canadian markets as it is easy to be fooled by a value trap. Internationally, we need to be just as careful, however there are real pockets of value to be found! Looking at the numbers presented above, it is hard to argue for investing in the S+P, however that is the only trade that has materially worked for any length of time. It begs the question.......where to put the money.

 

This is the very reason it makes sense to balance a portfolio and have a very good advisor to help you. (Shameless plug insert here)