Optimism #11 - August 8th, 2020

Dear clients and friends,

The only newsworthy news I can see out there is that Joe Biden may have chosen a running mate and we may be closer to finding a vaccine.

Yet, what a day. What a week.

My screen is currently showing gold down 106$ or 5.2%.  My guess is the markets are realizing that things are less bad than they thought and the sky is not falling.

The Canadian dollar is up over 75 cents US so your next trip outside Canada should be a bit less expensive.

Imported goods from the US will be less expensive and fuel should be lower at the pump as well.  All good.

The combined value of Apple’s is now worth more than all of the public companies in Canada… combined.  Astonishing.  They were broke in the late 1990s.

The core holdings in our portfolios are up.  The gravitational pull bringing share prices back to their true value is at work.

Over the past five days:

TD bank is up 6.3%.

Royal Bank up 5.8%

Telus up 1.8%

CN Rail is up 5.1%

Sun Life up 9.7%

In the Globe this morning I read that Lucara sold diamonds for an average of 109$ per carat.  Interesting.  And they’re $3,000 in the store!  What a business.

You are being rewarded for your patience.

Have a great week and enjoy the good weather.  141 days until Christmas.  😊

Derek Moran R.F.P.