Monthly Message

The Wutherich & Co. Composite was up 0.7% in July. This compares with the S&P 500 (US$) up 3.7%, the DJIA (US$) up 2.9%, the NASDAQ (US$) up 6.6%, the S&P/TSX up 3.9%, while the BMO Small Cap Index was up 3.8%.

The Golden Rule: He who owns gold stocks rules! This sector continues to drive Canadian indexes. The Wutherich & Co Composite has only modest exposure here with just under 10% in two gold producers. These are positions that we have held for years. We have recently talked to several traders that commented on how several money managers that they do business with started the year with no golds and now have large positions in the sector. It sounds like many managers are stampeding into the sector rather than making sound investment decisions based on long-term fundamentals. While we continue to look at individual names in the Golds, we have no intention of joining the herd. Rather, we own a diversified portfolio of strong small to mid-sized companies that we are happy to hold for many years and don’t feel compelled to own any one sector based on current market sentiment.

To view the complete Monthly Message and Factsheet click here