Mike Philbrick, president of ReSolve Asset Management
Focus: ETFs

MARKET OUTLOOK

I’ve noted previously that there should be an emphasis on return “of” capital rather than return “on” capital. Make sure your risk is right. Closer to the end of market cycles, investors’ risk appetites begin to expand; they increase equity exposures and reach for yield via credit in their bond portfolios, making them more equity-like. This leaves portfolios exposed to larger downside fluctuations during growth shocks.

It’s been amazing how defensive the recent gains in the S&P 500 have felt, with low volatility in particular chalking up a market-beating performance over the past 12 months. Comparisons between larger and smaller U.S. stock performances present a similarly contrary picture, with the large-cap benchmark’s 9-per-cent return over the last 12 months exceeding mid-caps by 11 per cent and micro-caps by a whopping 22 per cent. These internals are suggesting there may be more to worry about than the headline large-cap indexes are suggesting. That is, new highs are only occurring in large-cap and defensive sectors in equities and bonds.

TOP PICKS

Mike Philbrick's Top Picks

Mike Philbrick of ReSolve shares his top picks: HHF, CGLc and CCOR.

HORIZONS MORNINGSTAR HEDGE FUND INDEX ETF (HHF.TO)

HHF seeks investment results that replicate the performance of the Morningstar Broad Hedge Fund Index hedged to the Canadian dollar. The ETF uses an index replication strategy that provides exposure to futures contracts, ETFs, money market instruments and cash.

ISHARES GOLD BULLION ETF (CGLc.TO)

CGLc seeks to replicate the performance of physical gold bullion by investing in long-term holdings of unencumbered gold bullion, in 100 or 400 troy ounce international bar sizes. It’s unhedged. Investors that don’t own or at least consider owning gold as part of their portfolio either don’t understand history or economics.

CAMBRIA CORE EQUITY ETF (CCOR.N)

CCOR utilizes a combination of several strategies in an attempt to produce capital appreciation while reducing risk exposure across market conditions.

PAST PICKS: JUNE 4, 2018

Mike Philbrick's Past Picks

Mike Philbrick of ReSolve reviews his past picks: CNYA, KSA and HRA.

ISHARES MSCI CHINA A ETF (CNYA.N)

  • Then: $31.15
  • Now: $27.96
  • Return:-10 %
  • Total return: -7%

ISHARES MSCI SAUDI ARABIA ETF (KSA.N)

  • Then: $31.74
  • Now: $32.34
  • Return: 2%
  • Total return: 5%

HORIZONS GLOBAL RISK PARITY ETF (HRA.TO)

  • Then: $10.24
  • Now: $10.57
  • Return: 3%
  • Total return: 4%

Total return average: 1%

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