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Sharon Kubicek
Alisa Carli
Christine Duggan

1 First Canadian Place
40th Floor , P.O. Box 150
Toronto, ON
M5X 1H3


February 2019
Equity Strategy

Feb 19: Echoes

Overhead the albatross hangs motionless upon the air
And deep beneath the rolling waves in labyrinths of coral caves
The echo of a distant tide
omes willowing across the sand

Roger Waters, 1971 
Great apropos lyrics from the best progressive rock band in history. The albatross certainly still hangs over investors’ sentiment despite the strong rally we have witnessed since the beginning of January. However, the echo we are referring to is not so distant. In fact, one only has to go back to 2016, three short years ago.
So why was 2016 significant? It was the last calendar year the Canadian market outperformed the U.S. since 2010. In other words, periods of TSX outperformance have been very few and far between in the last decade. In fact, looking back at over 100 years of historical data clearly shows that Canada only tends to outperform the U.S. market when commodity price are strong. And a better commodity environment is one of the key reasons we believe this year has a good chance to break Canada’s losing streak. So far so good, with the TSX off to the best January since 1987! 
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Do not hesitate to give either of us a call at 416 359-7565 or 416-359-7564 or email Sharon Kubicek or Alisa Carli if you have any questions respecting your portfolio and the prevailing investment, economic and political issues at play today.


Sharon and Alisa