A Comment -- General Comments From an Expert (A Commentary)

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Market Movers: October 2022. The TSX composite index declined 4.6% during the month and 13% YTD. While this was not a terrific performance, it was significantly better than the major US Indexes. The principal contributor to this decline was the aggressive stance taken by the Central banks who promised to continue hiking rates going forward in order to fight inflation. Unlock Premium - Try 5i Free

Believes negative sentiments in the markets are creating good buying opportunities. Markets are oversold and could mean that we have reached a bottom. US Federal Reserve moderation on interest rate increases (50 basis points instead of 75) will be interesting to watch.

Falling stock and bond prices are a rare occurrence. Usually bonds rise and/or fall inversely to equity prices. Looking into defensive sectors to protect investor capital. Auto industry is presenting good opportunities.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Small Caps Tend to Lead Markets Higher. We are biased here as we have always focused on small- and mid-cap stocks, but small companies tend to lead the market higher in a recovery. And they are historically cheap. Right now, they are about as cheap as they’ve ever been versus large caps, because scared investors are paying more for the perceived safety of larger companies. Small caps tend to have purely domestic revenues, so you don’t have to worry about the war or recessions in China and Europe. Small caps tend to have clean balance sheets, since banks don’t want to lend them much money. Small caps tend to have higher insider ownership, so executives are highly motivated and aligned with shareholders. Unlock Premium - Try 5i Free