In The News

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Read Through Our Latest News Posts To Gain Insights Into The Market.

Re-opening the Economy
April 22, 2020
As we await warmer spring weather and cherry blossoms, symbolizing a time of renewal, investors are focused on the rolling re-opening of the economy and the first quarter earnings season. A successful reopening strategy is likely to involve a sharp r...
Client Update
March 25, 2020
Neither Bull markets nor Bear markets last forever! We must remind ourselves that “this too shall pass.” We are in uncharted waters as we have never shut down a large part of the global economy before and we do not know when this will end – but we k...
The Coronavirus, the Financial Markets, and LDIC Inc.'s Operational Plan
March 13, 2020
It goes without saying the news over the past weeks has been concerning.  In times of uncertainty, it is also important to cut through a lot of the noise and the flash headlines over the past weeks... To read more, click here....
What this fund manager is buying, selling, and hearing from investors about Trump
October 25, 2017
BRENDA BOUW SPECIAL TO THE GLOBE AND MAIL Michael Decter understands why some investors are so obsessed with the actions of U.S. President Donald Trump, especially when a single tweet threatens to start a war, trade or otherwise. While Mr. Trump may...
LDIC Healthcare Special Opportunities Fund Investor Update
June 19, 2017
The June-July 2017 Investor Update for the Healthcare Special Opportunities Fund is now available. Download the PDF for more information....
Understanding Market Corrections
August 28, 2015
Stock market corrections are a normal part of any cycle. Unfortunately the cause and timing of corrections are virtually impossible to predict. The trigger this time was China devaluating their currency in an attempt to boost exports and prevent a fu...
Healthcare Special Opportunities Fund OPENS Toronto Stock Exchange
August 10, 2015
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LDIC Inc. Featured in Financial Post
June 11, 2014
LDIC is proud to announce its feature in the June 10 edition of the Financial Post, by Jonathan Ratner. It details the LDIC North American Energy Infrastructure Mutual Fund, launched in May 2013. Read the excerpt below. How to play the energy buildi...
Announcing the LDIC North American Energy Infrastructure Mutual Fund
May 03, 2013
LDIC is thrilled to announce the launch of its first mutual fund, the LDIC North American Energy Infrastructure Mutual Fund. Building on our more than fourteen years of experience investing in energy, and its related infrastructure and recognizing ...
We are marketing our investment services to Foundations!
August 02, 2012
Our historical marketing strategy is evolving to expand our assets under management of Foundations. The focus will support the investment objectives specific to the challenges of Foundations. LDIC Inc.’s performance track record supports a natural ev...

Markets

It goes without saying the news over the past week has been concerning.   In times of uncertainty, it is also important to cut through a lot of the noise and the flash headlines over the past week.   Let’s remember volatile markets are good for financial media networks revenue as their viewership goes up – regardless of what it does to our nerves.   

While we are all watching the market indicators throughout this week, it is worth noting that your assets under management at LDIC Inc. are not all equities, and they are certainly not concentrated in the S&P 500.  The diversification we apply to your portfolios allow for certain areas of your portfolios to soften declines during these market volatile times.  We hold bonds; preferred shares and real estate investment trust, as well as equities.

Investment is a process that involves asset allocation, diversification and decision-making to identify favourable risk/reward opportunities.  These principles have proven true over the past 20 years in both calm and disruptive markets conditions.

Volatility has been absent in financial markets for many years. During this time, LDIC and our clients have enjoyed attractive risk- adjusted absolute returns and our cash levels were kept to a minimum. In our February 28, 2020 communication, we explained our systematic process, which we began in 2019, to reduce risk in all portfolios given the exceptionally long economic cycle. As part of this program, we increased our fixed income weighting, increased the quality of our equity holdings and increased our cash levels.

Interest Rate Cuts and Stimulus

There is a massive worldwide effort underway to stimulating the global economy.

The Bank of Canada on March 4, 2020 cut its Key lending rate from 1.75% to 1.25% a 50-basis point cut.  Today March 13, 2020 the Bank of Canada cut its key lending rate further by 50 basis points from 1.25% to 0.75%.  These are two very substantial cuts. As well the office of Financial Institutions (OSFI) cut key regulatory buffer requirement from 2.25% to 1.0%. This will allow the Canadian chartered banks to increase lending by $300 billion dollars.

On March 3, 2020 the U.S. Federal Reserve cut its key lending rate by 50 basis pointes from 1.72% to a range of 1 to 1.25%. We are anticipating a U.S. Fiscal stimulus package shortly.

Coordinated overnight global efforts also included:

Australia – injected $5.6B of liquidity into their financial system – biggest injection since 2013 

India – injected liquidity of $2.5B rupee 

Norway – cut deposit rates by 50bps to 1%, first cut since 2016.

China – reserve requirement ratio (RRR) cut by 50-100 bps.

Thailand, Korea, Italy, Spain – restrictions on short selling.

Bank of Japan offered to buy $200 billion of yen bonds (QE).

These measures combined with global efforts to contain the coronavirus lead to a strong rebound in equity markets as the week ended.

Oil Price

More recently, in response to the coronavirus, oil prices have declined sharply, high-yield corporate bond spreads have spiked and U.S. and Canadian government bond yields have declined materially. In light of these recent developments, volatility has dramatically increased. At LDIC, we are monitoring daily developments and are committed to protecting our client portfolios. 

On March 6, 2020 the OPEC meeting ended without an agreement. Russia did not agree to a production cut and in retaliation, Saudi Arabia started a price war by increasing production and cutting their Official Selling Prices by the most in 20 years. The war for market share has been declared. We expect material underperformance for most of the North American Energy sector. At LDIC, we held very little in the Energy space and we have no plans to add exposure.

LDIC Operational Plan

Earlier this week we implemented the following to ensure LDIC Inc. is doing its part to prevent the spread of the virus.

• Our onsite meetings have been rescheduled to a web or phone meeting to limit the amount of traffic and exposure at our office.
• Employees who have traveled, or will be travelling will self quarantine themselves and work from home for a period of time to observe if any signs of the virus are revealed.
• Our Business Continuity Plan has been implemented and is working seamlessly.  Our team is continuing to service our clients’ needs from the office and remotely. 

Investing in turbulent times can be rewarding with the right investment philosophy and prudent execution.

LDIC Investment Team