Monthly Message

The Wutherich & Co. Composite was up 2.8% in August. This compares with the S&P/TSX being down 1.6%.

Stutter Step during August? We have been talking about the Two Step in the last few Newsletters as it seems that the Wutherich Portfolio is taking two steps forward one month and two steps back the next. August should have been two steps back if this pattern held. But no, it advanced modestly. We say modestly because most of our companies have reported quarterly results in the last few weeks and for the most part, the results have been excellent, with their outlooks continuing to be strong. The response of their stock prices has been modest in comparison to the outsized gains in their operations. The disconnect is informative. Clearly, investor fears around geopolitics and the macro-economic environment are discouraging them from getting more positive about stocks, regardless of how well the companies are doing.

And now we head into September, a notoriously difficult month for stocks. Two steps back anyone? We still have plenty of cash left from the takeover of Points.com. We hope to use it to buy positions that become unduly cheap as a result of any sell-off.

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