Breather? (TWTW – Sept 6-10, 2021)

Breather? So apparently, last week was the first week since last February that the S&P500 Index sustained declines every single day of the week …

Are we taking a breather? Or is September going to live up to its reputation as generally the worst month out there for markets aside from October? And notwithstanding spectacular earnings growth, and a FED some could argue seemingly converted to permanent “Dove” status – are we at risk of experiencing periodical setbacks that could fall under the heading – the market needed to take a breather?

 

Of course this September, on 9/11, we mark the 20th anniversary of an ignominious day that nobody can ever forget. A day, which in my books goes down as one where the worst of humanity was in full display … then again, also a  day, where many showed incredible courage, strength, resilience, as well as compassion – the flipcoin: Humanity at its best.

Anyways, having had the opportunity to visit the 9/11 Memorial 2 years ago, I walked away that day with a strong feeling “Love is Stronger than Hate”, an hour or so after having experienced incredible sadness while walking through the site, sadness mixed with powerful anger …

But yes, as I walked out of the Memorial, having acquired the plaque pictured above “Love is Stronger than Hate”, this was exactly what I left with – convinced that no matter what horrific events took place that day, and no matter how much suffering it ultimately caused to so many in the ensuing 20 years … well, ultimately, we all must learn – Love is Stronger than Hate. Unfortunately, we may still have quite a way to go, but let us hope, let us pray 🙂

Coming up: September 20, 2021 – Election day in Canada, an election Canadians are generally angry about, given most perceive it as having been called for the simple opportunistic reason that PM Justin Trudeau believed a majority government was his for the asking (or the taking, whatever) … Anyways, as I write, I am sure it no longer seems like that slam dunk, and no longer looks like the cynical good idea it might have seemed when called …

August employment in Canada – Decent unemployment numbers out of Canada last week => click HERE! coming in at 90,200 new jobs. Certainly a better relative number than the prior week’s disappointing 235K number out of the US.

CFR – Unintended consequences? Clients focused Reforms are underway, with first phase – June 30, 2021 looking after conflict of interest disclosures, and phase 2 kicking into effect Dec 31, 2021, and covering everything else (presumably), namely KYC, KYP, as well as newly introduced Risk capacity (not just tolerance … capacity = two very different things as you can appreciate). In any event – last week’s decision on the part of several institutions regarding their product shelf generated quite a bit of headlines => Click HERE! and HERE!

Factors performance – I mentioned Factors performance in a couple of posts last week, to highlight the fact that they do not all perform the same in every market. Case in point, Canada, where Min Vol has outperformed Market Cap weighted index in recent months …

August performance highlights – BMO ETFs => Click HERE!

Vanguard Canada ETFs => click HERE!

and iShares Canada => click HERE!

News:

iShares Canada and Dynamic announce that they are parting ways => click HERE!

Impact as far as holders of the 9 Dynamic Funds ETFs affected? No notable one as far as I can see, in that the mandates will remain the same. It is at the front end with Advisors that the interaction changes, as obviously iShares isn’t going to be part of that discussion. As far as the backoffice side of things, market making etc, same thing – Dynamics will have to handle all of that on its own, without BlackRock’s involvement.

as far as relevant dates:

BlackRock Canada has called special meetings of the unitholders of the Dynamic Active ETFs (the
“Meetings”), to be held on or about November 17, 2021, to approve the proposed change in trustee,
manager and portfolio manager of the Dynamic Active ETFs from BlackRock Canada to Dynamic Funds
(the “Proposals”). BlackRock Canada is holding the Meetings solely as virtual (online) meetings which will
be conducted by way of live audio webcast. Unitholders of record of the Dynamic Active ETFs at the close
of business on September 29, 2021 will be entitled to receive notice of, and vote at, the applicable
Meeting.

Apple – unveiling its iPhone 13 on Tuesday, to great expectations … but in the meantime, the stock was lower Friday, on account of an unfavorable ruling in connection with a trial between Apple and a company by the name of Epic Games (Epic indeed …) => Read more: click HERE!

Needless to say, the ruling, which affects the company’s App Store, could be rather detrimental to the company, seeing that Apple apparently keeps anywhere between 15 and 30% of gross sales, according to the article.

and latest – Kansas City Southern indicating they are now going with CP Rail (which one could see coming a mile away, after the recent surprise decision from a US judge deeming competitor CN Rail’s trust set up as not in the public interest … => click HERE!

Have a great week 🙂