Monthly Message

The Wutherich & Co. Composite was down 1.2% in May. This compares with the S&P 500, up 1.3%, the DJIA up 1.4%, the NASDAQ up 2.6%, the S&P/TSX down 1.2%, while the BMO Small Cap Index was down 0.2%.

Investors are obsessed with Technology again. To a lesser extent, they love healthcare. In general, they want anything but Resources. Valuations reflect this and overall seem to matter less and less to market participants. We’ve seen variants of this before and it usually doesn’t end well for the stocks being obsessed over. While it continues to be difficult to find reasonably priced, growing companies, that is our mission. Furthermore, with a greater focus on high priced stocks, some companies will be neglected, and this is where we spend more of our time. We know that this may result in us being completely out of step with the market for an extended period of time. But ultimately, this has worked for us in generating good long-term returns.

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