Independent Insight

Your Portfolio Needs Moneyball & Eyeball Tests

When constructing a portfolio, investors need to use quantitative i.e. data-driven tests in tandem with old-fashioned eyeball tests. Just like in baseball where management teams crunch data using the so-called Moneyball method and finalize roster decisions based on what they see on the field. This according to David Kaufman, founder & CEO of Westcourt Capital. Here he compares how winning teams are assembled with how investors can create successful portfolios using a similar approach.

Why Electrical Vehicle Maker Workhorse is Lame

Why Electrical Vehicle Maker Workhorse is Lame

Anything electric vehicle-related is on fire again. But beware. While investors can make some good money with their EV investments and trades, they can also get burned if they buy into all of the hype. Nikola Motor is an example of that. And Workhorse Group may be, too. The story of the company proposing to manufacture electric delivery trucks has yet to be fully written. However, there are ample questions surrounding Workhorse after a recent short seller report cited “critical failures” at the company and said the stock could collapse. Here are the hi-lights of that report and a link to the full report. 

Three Simple But Tricky Rules of Investing

These are three basic-looking but difficult to execute rules of investing from David Kaufman, founder & CEO of Westcourt Capital. They appear easy in theory but investors often allow emotions and bad habits to get in the way. Here’s how to avoid those pitfalls. 

How to Build Your Portfolio Like a Champion

How does the tactical manoeuvring Blue Jays management executed on its 1992 and 1993 World Series championship rosters compare to building a winning investment portfolio? Find out from David Kaufman, founder & CEO, Westcourt Capital, who advises ultra-high-net-worth investors. He weaves a compelling baseball analogy.

Six Reasons Why the Bull Market is Broadening Out

Six Reasons Why the Bull Market is Broadening Out

Ed Yardeni of Yardeni Research relentlessly produces high-quality research on an almost daily basis. As we’ve noted before, he’s generally been bullish and correct since 2009 in the wake of what he calls the Great Financial Crisis (GFC). In his latest note, Yardeni shows through charts why the stock market is no longer bifurcated when large technology stocks led and most other stocks lagged. He explains that the bull market is now broadening out partly as a result of the vaccine news from Pfizer and BioNTech and Moderna. Here are six reasons why.

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How to Invest Like the Ultra-High-Net-Worth

David Kaufman knows all about what ultra-high-net-worth investors want from their investments. As Founder & CEO of Westcourt Capital, Kaufman advises these ultra-wealthy individuals and families, foundations, trusts, and pension funds on how and where to invest, and whom to trust in constructing their multi-million dollar portfolios. In this conversation, Kaufman reveals the risk-reward mindset, strategies, and tactics he helps his clients deploy to find the right managers and the right investments which, thanks to new products, retail investors can get close to mirroring.

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Fits & Starts: Market Will Track Pace of Virus

Investor money will flow back and forth the next several months from reopening stocks to stay-at-home stocks depending on the pace of the virus and vaccine distribution. That’s according to John  Johnston, EVP & Chief Strategist at Davis Rea Investment Counsel. Hear what he has to say about political gridlock, vaccines and the key data to watch. 

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It’s the Volatility, Stupid.

It’s the Volatility, Stupid.

Keith McCullough would be the first to tell you he’s a polarizing figure. But he doesn’t care. Since 2008, the Canadian-born founder & CEO of Hedgeye has been on a mission to deliver “hedge fund quality research to everyday investors.” The former hedge fund manager sharply and continually criticizes “Old Wall Street” and CNBC for what he believes is a dead wrong emphasis on stories, valuations and feelings. Instead, McCullough and his team focus on their “process”, which can all be a bit intimidating for the uninitiated. Fortunately, Hedgeye, which offers at least 10 paid products, pulls back the curtain occasionally on its weekday morning Macro Show. Here’s a link to a recent episode that is a good starting point in understanding the basics of the Hedgeye approach.

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Amazon. Apple. Shopify. Monopolies or Not?

Amazon. Apple. Shopify. Monopolies or Not?

We know the U.S. government is investigating big technology companies for their market dominance and possible monopolistic behaviour. But which markets and are these companies really monopolies? Does Amazon have 40% market share or 10%? Does Apple have 15% or 80%? UK-based independent technology analyst Benedict Evans explains that it depends and that the answers are not that simple. Here he provides investors with the building blocks to better understand the ongoing anti-trust cases.

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Why Mega-Cap Tech Bubble Can Continue

Why Mega-Cap Tech Bubble Can Continue

What causes market bubbles and what causes them to pop? We feature highlights of a research report that takes a deep historical look at those questions and puts a microscope on large cap technology stocks. Are they in a bubble and, if so, are the conditions ripe for it to burst or not?

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Thank You! Please Watch This Brief Welcome Video.

Thank you for signing up to Uncommon Sense Investor. Please watch this brief welcome video with Mark Bunting and John O’Connell to give you an idea of what kind of investment content we offer. And find out how to easily get in touch with us to let us know what topics you’d like us to explore, which guests you’d like to see, what you like, and what you don’t like (be gentle). Plus, you can get a free, no obligation, no hassle consultation on your investments from John or someone from his team at Davis Rea Investment Counsel. 

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Four Strategies to Battle the “She-Cession”

Four Strategies to Battle the “She-Cession”

We’ve talked before about how women have been disproportionately affected in the labour force due to the pandemic. At the bottom of this article you’ll find a study from RBC Economics detailing the sectors and demographics most impacted. Here’s a piece via Inc.com that outlines four strategies employers could adopt to thwart the so-called “she-cession.” 

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Oil in Cyclical Bull Market

Oil has been mostly out of favour since 2014 and, after recovering from its lows in April, mostly trading in a range. But crude is in a cyclical bull market and could be on the cusp of a multi-year uptrend as the U.S. dollar prepares to reverse the uptrend it’s had going since 2011. This according to John Johnston, Chief Strategist at Davis Rea Investment Counsel. He says while it’s too early to make a “great contrarian call” on oil, that time is coming. Find out why and see some great long-term oil and U.S. dollar charts. 

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Global Stock Outlook Through 2021

“Now is the time to move more of your money away from the U.S. toward international stocks…away from tech and growth toward value stocks.” Peter Berezin, Chief Global Strategist at BCA Research, details his investment strategy advice for this key inflection point in the market and how investors should be positioning themselves as inflation looms.

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Not Time to Dump “At-Home Revolution” Stocks

Not Time to Dump “At-Home Revolution” Stocks

Altimetry describes itself as a boutique financial research and publishing firm providing individual investors with unique, unbiased investment recommendations and analytics. Anthony Scilipoti, President & CEO, Veritas Investment Research, turned us on to them and their Altimetry Daily Authority. Today, Altimetry’s Chief Investment Strategist, Professor Joel Litman says investors are getting too excited if they think the coast is clear to pile into stocks beaten down by the pandemic. Here’s why. 

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Recuperating Economy Choppy But Encouraging

John Johnston has some very informed and definite thoughts on what political gridlock in the U.S. means for investors. The Chief Strategist of Davis Rea Investment Counsel also has insights in this video on the prospects for COVID-19 vaccines and the unanswered questions that surround them. And Johnston assesses the state of the economic recuperation through revealing charts, and what key data investors should watch. 

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Light At The End Of The Tunnel But Five Risks Remain

Light At The End Of The Tunnel But Five Risks Remain

Even though we’ve all become epidemiology experts over the past several months, Peter Berezin walks the walk. The Chief Global Strategist at BCA Research earned a Master of Science from the London School of Economics back in the day so his insights into possible COVID-19 vaccines likely hold more weight than the opinions of average, well-meaning folk. Berezin can see a post-pandemic horizon but there are five key risks along the way investors should be aware of. 

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“I Would Be Moving Into Value Now Shifting Away From Growth.”

Here’s one vote for value stocks. Peter Berezin has waded into the debate about whether investors should start reducing their exposure to big technology growth companies and start putting money into the type of stocks that have been clobbered by the pandemic. In this new video, the Chief Global Strategist at BCA Research says now is the time to shift to beaten down companies because they’re inexpensive and, while their are many uncertainties, we can now look through to a time next year that a COVID-19 vaccine is rolled out on a mass basis.

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Great Debate on the “Great Rotation.” Has it Started or Not?

Great Debate on the “Great Rotation.” Has it Started or Not?

A debate is raging about whether we’re in the midst of a major shift, years in the making, from growth stocks to value stocks, now that a COVID-19 vaccine appears to be on the horizon. Some market participants say the time is now to buy inexpensive stocks exposed to a recovering economy, while others say we’re not there yet and that big technology stocks will continue to lead. Here’s a good overview on the current range of opinions on whether the “Great Rotation” has actually begun. 

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Is Air Canada’s Stock Ready for Takeoff?

Is Air Canada’s Stock Ready for Takeoff?

We got a taste of the appetite for out of favour stocks inordinately affected by the pandemic after Pfizer said its COVID vaccine was more than 90 per cent effective. So-called “garbage stocks” took off, the possibility of which we flagged in our article on October 21. The rally is unlikely to be sustainable and there are many questions unanswered about the vaccine and how quickly it could be distributed. But if you’re looking for a company ripe to benefit in the lead up to what we hope is a post-pandemic environment, Air Canada is at the front of the queue.

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Chief Strategist on Biden Win & Pfizer Vaccine

Chief Strategist on Biden Win & Pfizer Vaccine

The double whammy of Joe Biden’s victory and Pfizer and BioNTech’s news that their COVID-19 vaccine is more than 90 per cent effective has sent the major U.S. indices back to all-time highs. Here’s a first blush take on what it all may mean for the economy and financial markets from John Johnston, Executive Vice-President and Chief Strategist at Davis Rea Investment Counsel.

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Updated: The Trend is Still Your Friend

Updated: The Trend is Still Your Friend

In his monthly letter to clients, John O’Connell asserts that, despite the massive distraction of the U.S. election, what investors truly care about are interest rates, government spending, economic outlooks, jobs, income growth, and corporate earnings. The trend remains up and, as the axiom says, the trend is your friend until it ends. 

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Why Big Banks & Value Stocks Should Thrive Post-Election

Why Big Banks & Value Stocks Should Thrive Post-Election

We’re looking forward to next week when we’ll interview BCA Research Chief Global Strategist, Peter Berezin. We’ve published excerpts of many of his previous reports, which are always thoroughly researched as he makes salient points about the economy and how investors should be positioned. And, as always, Berezin’s research is peppered with a number of informative charts that help us visualize his key points. What follows is a condensed version of Berezin’s latest report entitled Election Fireworks in which he looks at the political state of play, the economy post-Trump and how big banks and value stocks should thrive.  

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The Black Opportunity Fund

Dennis Mitchell was one of 50 co-founders of The Black Opportunity Fund. The Chief Executive Officer and Chief Investment Officer of Starlight Capital explains how the coalition of Black executives and business leaders is designed to combat systemic racism and create intergenerational wealth to benefit all Canadians. 

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