We offer regular reviews of topics that are important to asset owners and managers who trade capital markets. Our opinions and insights are freely shared.

Awaiting PDAC 2020

A favorite time of the year for me is the beginning of March in Toronto where the weather outside is often miserable, but inside the Metro Convention Centre it’s always a rollicking good time as the miners hit town from every place imaginable on earth. Toronto is the centre of the mining universe and its

Awaiting PDAC 2020

Early Warning to the 2007-2008 Global Financial Crisis: Precursor to 2020-2021?

Bill Cara October 17, 2019 While searching the internet the week for an article I wrote on Bahamas while living and working there in 2006, I discovered a blog by somebody called wabrew that referred to a selection of my extensive Week In Review report dated October 14, 2006. Earlier that year the editors of

Early Warning to the 2007-2008 Global Financial Crisis: Precursor to 2020-2021?

We Are The Watchdogs

“Notre maison brûle, et nous regardons ailleurs. Nous ne pourrons pas dire que nous ne savions pas” (Our house is burning, and we choose to look away. We will not be able to say that we did not know) These words were pronounced by the late French President Jacques Chirac in 2002 during the 4th

We Are The Watchdogs

These Companies Will Boost Your Portfolio Performance… And Your Morale

Global companies’ performance on environmental, social, and governance (ESG) issues is rapidly becoming more critical to their competitiveness, profitability and share price. We are writing this commentary and re-orienting our own investment philosophy, because we profoundly care about environmental issues. We can also get onboard with the social and governance aspects of ESG investing because,

These Companies Will Boost Your Portfolio Performance… And Your Morale

No, It’s Not Too Late To Buy Oil Stocks

The attack on Saudi oil fields was, of course, unexpected. But this oil-positive news came after oil stocks were already in the midst of their best month since January 2019. The S&P Oil & Gas Exploration & Production Index (XOP) was already up +8.58 for September before the attacks. As is often the case, news

No, It’s Not Too Late To Buy Oil Stocks

Is The Writing On The Wall?

August has already proven to be an eventful month. Trump started the festivities, as he did at the beginning of May, with a tweet announcing new tariffs on China. While equity markets fell on the news, traders initially began buying on the belief that markets typically don’t react to repeat news (ie, May’s correction would

Is The Writing On The Wall?

Governance Issues At Canopy And CannTrust

Summary Big questions cannabis investors need to be asking. Hidden rooms and pesticides. Canopy can be added to watch lists for the future.   What really is happening in the cannabis industry? This article is not about a particular investment thesis of CannTrust Holdings (CTST) and Canopy Growth (CGC) but about how these two companies

Governance Issues At Canopy And CannTrust

Taking a Risk with a Promising Natural Gas Stock

Natural Gas today is at $2.312 per MMBtu, well down from January’s 2019 high of $3.722 but bouncing back a bit after hitting a three-year low on June 16. Over the past two years, we have owned shares of four of Natural Gas companies in our Natural Resource portfolios: Devon Energy (DVN), Encana Corporation (ECA),

Taking a Risk with a Promising Natural Gas Stock

A Decision-making Process for Equity Investors

Buying stock is always easy. But, for independent-minded portfolio managers, the decision-making always comes down to a matter of choice and therein lies a problem. This week we had two stocks under consideration to buy for the WMA Cara Natural Resources Portfolio: the large cap diversified metal and coal miner Teck Resources (TECK) and small

A Decision-making Process for Equity Investors

The Single Most Important Indicator For Equity Investors

Buy Company Stocks For The Real Reason To Buy Stocks Many have expressed frustration in trading equities over the past few years. Between central banks holding interest rates at inappropriately low levels, official direct intervention (Swiss National Bank, Bank of Japan and undoubtedly clandestine government equity purchases) to support the stock market, and a massive

The Single Most Important Indicator For Equity Investors

Comparing the ‘Cannabis 50’ to the S&P 50

This week we compare many corporate fundamentals of the ‘Cannabis 50’ companies to the largest 50 of the S&P 500 companies. If we are going to buy, sell or hold the stocks, then we ought to understand how they stack up to the world’s best-known companies. In fact, for both sets of 50 companies we

Comparing the ‘Cannabis 50’ to the S&P 50

THE ‘BILL CARA CANNABIS 50’ COMPANIES

This week we focus on 50 cannabis companies for which we, as portfolio managers, capture comprehensive investor-related data. We show how we capture the data and apply it to a proprietary algorithm to generate decision-support information. We will let the data speak for itself. But new readers will first need an explanation. Every week my

THE ‘BILL CARA CANNABIS 50’ COMPANIES

What I have learned over 50+ years of trading

Change is constant. Markets are competitive. For the owners and managers of assets, only students of the market survive. We must learn to adapt to change. That involves the continuous study of  ​social and political change, macro-economic data and business conditions, international trade and taxation, commodity prices, interest rates and market liquidity, emerging markets, industry life cycles, corporate balance sheets and operating fundamentals, investor sentiment, trading research methodologies, and so forth. Needing to be a specialist at just one thing is a myth. Multiple interests and skills are required.

We all have it in our power to develop sufficient expertise to trade as well as most professionals. However, like anything in life, the experience needed to survive and prosper takes time and should not be rushed.

How to trade, survive and prosper

Through our publications, we offer a practical guide that incorporates an holistic approach to trading capital markets. Before we should buy any security, we need to understand the market and how to trade.

We believe we should buy only what we need and to buy the highest quality. The basic choices are Growth, Value or Yield. You should ignore any other marketing label put by to the sell-side. Understand that large-, mid- and small-cap companies or companies that operate in different regions of the world is simply your preference.

To ascertain the highest quality for Growth, Value and Yield requires a study of corporate fundamentals, comparing performance of one company to all other companies. In our proprietary database of almost 5,000 companies, we input the data of about 15 datapoints from Bloomberg and Thomson Reuters and then calculate weekly composite scores for Growth, Value and Yield, which we then rank from best to worst. For the most part, we are interested only in the highest quality companies. For order entry timing optimization, we study the market price & volume data for each of these companies from about 50 datapoints we capture from various sources on a daily and perhaps intra-daily basis.

Each portfolio is created and managed to meet different investor requirements; however, the trading methodology we use is consistent with what we know from experience works.

To guide our readers, we produce a Cara 100 list that balances Growth, Value and Yield considerations. This freely accessible list of what we consider to be quality companies is updated at the end of each quarter year, based on relative fundamentals, giving a range of large-, mid- and small-cap companies.