Solid returns recorded in the first half of 2021

We believe the market is in transition from a momentum driven growth mode to a more consistent growth mode. It is our view that the market/investors are too focused on macro details, which gives us an advantage with our individual stock selection process. In other words, it’s a stock pickers market. Diversification is still important; we want to have exposure to value and growth stocks and we want to diversify across sectors and market capitalization. Although, our bias is towards large cap, highly liquid stocks, we also maintain exposure to mid cap and small cap stocks in sectors that are most relevant given the current economic environment. We are focused on the strength in the U.S. market overall and the consistency of earnings that are being reported in general on both sides of the border. Although, the Canadian market is outperforming year-to-date, we still maintain the thesis that a U.S. economic recovery will pull Canada along for the ride. Our long-term sector thesis favours Communications and Technology stocks over the next few years.

If you would like a copy of our full June market commentary, please email us.