5 from 5i - Chasing Manager Performance

Michael Southern Nov 11, 2016

Donald Trump was elected the 45th president of the United States in a stunning victory, beating his opponent Hillary Clinton. After initially falling to below 50 percent, the market-implied odds of a hike are back over 80 percent. Caterpillar (CAT) soared on hopes that a Trump administration would reinvigorate investment in infrastructure. Drug stocks including Pfizer (PFE) and Johnson & Johnson (JNJ) rallied as Trump’s win diffuses fear of tough action on drug pricing. Canfor (CFP) and other Canadian lumber producers dropped after Donald Trump’s win damped prospects for a trade pact on softwood lumber. Manulife (MFC) and Sun Life (SLF) both reported strong results. Higher bond yields weighed on defensive sectors, such as utilities, telecoms and consumer staples.  Here are a few links we found interesting this week: 

  1. Even a fund manager that knew the biggest long-term winners/losers would be fired. 
  2. Young home buyers need to consider more than rent vs. mortgage payments.
  3. Investors should focus on improving cash flows for 'big oil' and less so earnings.
  4. Making inflation great again.
  5. A 'strategy' on how to earn 2% return (at best) over the long-term - With the benefit of hindsight, this is particularly interesting as even though 'Chris' hedged the Trump win appropriately, he still got the market move call totally wrong and is a great example of difficulty in timing the markets (even if your thesis is right!).

ICYMI, you can see our thoughts on the US election result here.

1 comment


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Nov 22, 2016
I enjoyed these articles. Thanks for posting these little gems.