Different Makes a Difference

The Odlum Brown Research Blog

  • The Evergrande Fiasco: Short-Term Pain for Long-Term Gain?

    By Murray Leith CFA, Executive Vice President & Director, Investment Research
    Friday, November 12, 2021
    In September, shock waves reverberated through global financial markets on news that Evergrande Group, China’s second-largest real estate developer, was on the verge of defaulting on its U.S.-dollar bonds. For a brief moment, stock prices all over the world dropped as nervous investors wondered whether Evergrande’s collapse would be China’s Lehman Brothers moment, and the trigger of a major global financial disaster.
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  • A New Appreciation for Alternative Asset Managers

    By Benjamin Sinclair HBA, CFA, Equity Analyst
    Wednesday, August 25, 2021
    Alternative asset managers possess all the traits we seek in worthy investments. They tend to be consistently profitable thanks to high fees and locked-up capital, and they are part of a growing industry. Better yet, many of them have fantastic track records, in particular when times are tough. There’s no better example of that than their performance during the COVID-19 pandemic.
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  • Are Lumber Prices Really Hitting New Lows?

    By Cory O'Krainetz B.Sc., Equity Analyst
    Friday, July 09, 2021
    It has been quite a year for lumber and other wood products. Prices soared due to unexpected demand from home construction and very lean supply chains. In the early days of the pandemic, producers went into survival mode, cutting back capacity and liquidating inventory. This set the stage for record high prices early in 2021. Anyone looking to buy lumber or a sheet of plywood at Home Depot has no doubt experienced severe sticker shock. But the headlines now are highlighting an epic collapse. We think some perspective is needed.
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  • Withstanding Inflation

    By Stephen Boland CFA Equity Analyst
    Friday, June 25, 2021
    A McDonald’s in Tampa, Florida, struggling to find labour, is offering job applicants $50 just to show up for an interview. Homebuilders have seen lumber prices shoot higher. Groceries are getting more expensive. The U.S. Consumer Price Index, a broad measure of consumer prices, rose 5% in May, its highest rate of increase since 2008. In Canada, consumer prices are rising at their fastest pace in nearly a decade. Tangible examples of inflation abound. What’s less evident is whether current inflationary forces are transitory or if they will prove to be more problematic.
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  • Worrying Too Much About Capital Gains Can Be Taxing

    By Fai Lee CGA, CFA, Equity Analyst
    Thursday, June 10, 2021
    Taxes are inevitable, and long-term investors often face the reality of paying capital gains taxes when they sell stocks in their non-registered investment accounts. When this occurs, investors are left with less money to reinvest and compound over time. To offset this impact, investors want the return from whatever new stock they buy to be higher than the stock they sell. Interestingly, the theoretical break-even return required from a new stock to justify a switch may not be as high as some think. This can be illustrated through an example.
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  • Discover the Extras in the Ordinary

    By Cory O'Krainetz B.Sc., Equity Analyst
    Monday, May 03, 2021
    In the post-pandemic world, we believe boring will be rewarding. In this year's Annual Address, Equity Analyst Cory O’Krainetz discusses why the humdrum dividend-paying stocks like utilities and telecoms are particularly attractive in today’s market.
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