Part three of our conversation with John O’Connell and Don Ritchie of Davis Rea Investment Counsel.

As the Mother of All Bubbles continues to unwind, investor behaviour in certain parts of the market remains curiously exuberant.

As if the bailouts of U.S. regional banks, forced rescue of Credit Suisse and nearly $1 trillion worth of emergency funding U.S. financials have accessed the last few weeks at the U.S. Federal Reserve’s discount window and new funding program are all in the rear view and we’re good to go back into a bull market.

O’Connell and Ritchie give their views on this behaviour, how they’re managing risk as algorithms and high-frequency trading exacerbate volatility and stresses in the stock market, why it’s easier to make money now, and discuss a few signs that indicate portfolio returns will be high single digits after the Fed first cuts its key lending rate.

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