5 from 5i - A Need to be Patient and Flexible

Michael Southern Nov 04, 2016

There are only days left to the election, and investors are getting nervous. A Trump victory is now no longer a 'hail mary'. Broad markets have fallen over the week and the S&P500 haas closed lower eight trading sessions in a row. A barrel of WTI is trading below $50 as the commodity headed for its biggest weekly loss in almost 10 months. Performance Sports Group (PSG), the parent company of Bauer, Easton and Mission sports equipment, said it had filed for bankruptcy protection in the U.S. and Canada to facilitate a restructuring and sale of almost all of its assets. According to The Wall Street Journal, Valeant Pharmaceuticals (VRX) is in advanced talks to sell a big stomach-drug business to Japan’s Takeda Pharmaceutical Co. for about US$10B. Otherwise, earnings season is in full swing and we have seen solid results from PBH, KXS and WCP to name a few. Here are a few links we found interesting this week:

  1. Some issues with DCF valuations
  2. Since 1950, 7% of trading days have been 'new highs'.
  3. Featuring short-sellers is not media irresponsibility.
  4. Small-cap investors need to balance patience with flexibility 
  5. Investors would be wise to apply intelligence fallacies to their investment analysis.

ICYMI, we outlined where assets may be best located across investment accounts.

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