Market Commentary
Every quarter, we review the market’s performance, major events and trends, macro-and-micro economic activity, and investment opportunities and pitfalls. We provide a clear rationale for our investment decisions and our future predictions.
DISCLOSURES
The information contained herein is for general information purposes and does not constitute a solicitation for the purchase or sale of securities. The full details of the Fund, its investment strategies and the risks are detailed in the Fund’s current simplified prospectus and fund facts document, copies of which may be obtained from Sedar, your dealer, Veritas Asset Management Inc. (“VAM”) or at Veritasfunds.com. Please read the prospectus before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. All performance data assume reinvestment of all distributions or dividends and do not take into account other charges or income taxes payable by any unitholder that would have reduced returns. The performance of the Fund is not guaranteed, unit values change frequently and past performance may not be repeated. Performance is presented in Canadian dollars, unless otherwise stated, and is net of fees of Series F units of the Fund. VAM is an affiliate of Veritas Investment Research Corporation (“VIR”) by virtue of being under common control that may also from time to time have certain common directors, officers and/or employees. VIR produces and issues independent equity research regarding public issuers to investors and other capital markets participants. VAM is a client of VIR and receives research reports from VIR at the same time as VIR’s other clients. VIR and VAM have implemented policies and procedures to minimize the potential for and to address conflicts of interest, which are available upon request.
Cautionary Note Regarding Forward-Looking Statements
Some information may contain forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that Veritas Asset Management Inc., the Portfolio Manager, or any affiliates thereof (the ‘Companies’) believe, expect, or anticipate will or may occur in the future (including, without limitation, statements regarding any targeted returns, projections, forecasts, statements, and future plans and objectives of the Companies) are forward-looking statements. These forward-looking statements reflect the current expectations, assumptions or beliefs of the Companies based on information currently available to the Companies. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Companies to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Companies.
For a list of factors that could cause actual results or events to differ materially from current expectations, please refer to our Prospectus and the section ‘Risk Factors’. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Companies disclaim any intent or obligation to update any forward-looking statement, whether as a result of new information, future events, or results or otherwise. Although the Companies believe that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Making Sure to Plan Ahead
Explore how global political changes in 2024, including major elections, are shaping our investment strategies. Discover how we think this will impact markets and how our funds are positioned for long-term growth.
Read moreEnjoy the Sprint but Run the Marathon
So far this year, the U.S. economy has surprised to the upside, with strong labour markets and a pickup in growth. With better-than-anticipated economic data and slower progress on inflation, bond yields are up and rate cut expectations have been pushed back to later in the year.
Read moreWhen Goldilocks Can’t Get Comfortable
Markets enter 2024 with most economic readings in decent shape: inflation is coming down; credit conditions appear to be holding up; and unemployment remains at multi-year lows. Even so, markets can't seem to get comfortable with where things stand.
Read moreQuarterly Checkup
As we enter the fourth quarter of 2023, the global economy is now well into the second-order effects of the inflation cycle, triggered by wage pressures, rising input costs, and higher interest rates as central banks try to contain price increases. On balance, the more time passes at higher inflation and borrowing rates, the more stress it puts on consumers and the economy. In this update, we review our YTD performance, consider the health of the U.S. and Canadian consumer, and outline how we are navigating current market risks.
Read moreTracking the Tides
Looking ahead, labour markets remain tight, consumer spending is healthy and inflation is decelerating. As encouraging as the economic data may be, we see signs that the global economy is struggling to adjust to cost pressures and higher interest rates.
Read moreA Tech Rally but What’s Next?
Hopes for an end to the current cycle of rate hikes spurred a strong start to equity markets in 2023. Much of the rally was due to a resurgent Information Technology sector which contributed more than two thirds of the first quarter index move in the S&P 500 and roughly one third of the return for the S&P/TSX.
Read moreRedefining Normal
Exiting the pandemic, we all hoped that the world would get back to normal, and in many ways it has. The investment landscape of the last twenty years has been atypical, however, with very low interest rates and significant monetary interventions.
Read moreInflation and the Inversion
With the U.S. 10-year Treasury yield currently 80+ basis points below the U.S. 2-year yield, 2022 has seen the yield curve steepen to a level not seen since the Fall of 1981, at the height of the Volcker inflation-fighting regime in the United States.
Read moreWhat is in Your Index? Why Canada Should Outperform in 2023
For the first year since 2016, the S&P/TSX is on pace to beat the S&P 500 in 2022, with a return of -3.3% through November 15th, versus -15.1% for the S&P 500.
Read moreAt the Mountains of Volatility
The third quarter of 2022 carried historically high volatility, with daily returns on the S&P/TSX posting an annualized standard deviation of more than 16%.
Read moreCaution, Earnings Ahead
Although markets do not always lead changing fundamentals, markets traded down ahead of weaker earnings in the first half of 2022.
Read moreHalf Full Glasses
Since the end of June, global equity flows have been negative and F23 earnings estimates for the S&P 500 are down 7%, yet the index has rallied more than 11%. We chalk the move up to two things.
Read more