Monthly Message

The Wutherich & Co. Composite was down 0.6% in June. This compares with the S&P/TSX down 0.8%, the BMO Small Cap Index up 0.1%, S&P 500 (US$) up 0.6%, the DJIA (US$) up 1.7%, while the NASDAQ (US$) was down 0.9%.

July 2nd marks my 25th anniversary in the investment business and there has been nary a dull moment! The beauty of this business is that there is always something interesting to study. Growth versus value investing is a frequent topic of debate. Growth has trounced value for the last several years led by many of the marquis technology names (think FANG stocks, or some variation thereof). Whenever I see a singular focus by the investment community on one investment style (growth), narrow group of companies (FANG) or investment vehicle (ETFs), I suspect that parts of the market get overpriced. This creates opportunities in other parts of the market. We are always interested in the other parts of the market.

Though I call myself a growth stock manager, I always pay close attention to valuation and so am somewhere between the growth and value worlds. While I know that we have not gotten rewarded for the value of the names in our portfolio over the last several years (I share your pain), I believe that we will when the market turns its attention away from its current obsessions. In my 25 years, I have seen it time and again.

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