Ottawa Investment Advisor John Bruce

November 2018 Update

November 2, 2018

I would like to prepare you for what is likely a decline in your accounts from the previous month. This recent sell- off, like most sell- offs, has occurred fast and with an apparent fury that it has created fear with investors. As of today’s date the Dow Jones Industrial Average, the NASDAQ and the S&P 500 have given up all their advance for the year. The TSX has fared worse and gone back to levels achieved two years ago.
The markets are moved by fear and greed and fear has taken hold.
I saw this coming and prepared you for this event with previous letters in July and August and again in October. We took profits when we could and built up our cash. What we have that has gone down has not necessarily gone down because of anything intrinsically bad within the investment. What has happened is that we have more sellers than buyers and that is sending the market lower.
That is the good news in so far as it is giving us a chance to buy the best companies in the market at sale prices.
Many are saying it is the end of the bull market, or it’s 2008 again. It is not 2008 again. We are in a very different set of circumstances than we were in 2008. I have attached a report (click on this underlined area) from Drummond Brodeur, CFA, Senior Vice-President and Global Strategist with Signature Global Asset Management. He is one of a few fund managers that I value and respect.
His perspective is encouraging and factually supported. I invite you to read it.
Please call me if you have any concerns at (866) 860-4190 or direct at (613) 491-3344.
Sincerely,

John S. Bruce
Investment Advisor

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