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Investing 101: Lump-Sum vs. Cash Flows

Time is money, and money is time. One of the founding principles of investing is that cash upfront is almost always better than spread out over a period of time. To achieve the same ending amount, less money is required if it is provided in full upfront than spread out over time. To demonstrate this, we show below that $10,000 upfront grows to ~$25,000 in 12 years, growing at an annual rate of 8%. Conversely, an investor would require 12 payments of $1,225 ($14,700 total) earning 8% annually to have $25,000 by the end of 12 year period. Therefore, $10,000 upfront growing at 8% achieves the same ending goal as $14,700 spread out over 12 years.
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He's underweight, and has been for some time. His portfolio position on banks is ~15%, compared to 20-25% of the index. It's not a market-timing call, but more of a long-term structural call. Better places to put $$. For individual clients, he doesn't mind selling some bank stocks to fund expenses. Otherwise, he's happy to hold and collect the dividends. 

All of them are quite rich, he's not buying right now. And we're still not at peak reset for Canadian home mortgages, which will be end of this year and into next. He'll be watching that.

Lots of cross-currents in the energy market. President south of the border encouraging "drill, drill, drill", which will likely add to supply. Some pressure may be coming off geopolitically. Price of oil is moving a bit lower. We're coming out of the seasonally weakest time of the year.

Large-cap energy companies have traded better than you'd expect, given where oil is. The big names have been outperforming. The big Canadian oil companies are very different from those in the US, which are producing shale oil. Our reserve life should be worth a lot more.

Strength in the Markets Despite Global Tensions: Earnings are Surprisingly Good

For this year, looking at S&P 500 earnings, just completed third-quarter earnings growth is projected at about eight per cent year-over-year, marking the ninth consecutive quarter of earnings growth for the index. For the full year, earnings growth is expected to be around 10.9 per cent to 11 per cent, with revenue growth of about 6.1 per cent. Looking out to next year, earnings growth is forecast to accelerate, with estimates around 13.8 per cent year-over-year, according to data firm FactSet Research Systems Inc. Revenue growth for 2026 is estimated around 6.6 per cent. Earnings truly drive the market, and the surprisingly robust showing — even in the face of tariffs and a possible recession — has made investors confident enough to spend their cash.
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Biotech tends to be a very binary business, boom or bust. He's not an expert in biotech, so is not comfortable participating. The pharma side has been subject to a lot of political noise.

That leaves medical devices as the one area he's been willing to be in. He likes ABT and ALC.