Generation PMCA Corp.

01/27/2025

Check out our latest article, "A Grand Illusion?", by Randall Abramson, CFA, excerpted and edited from our quarterly newsletter to clients dated November 20, 2024.

Only time will tell whether today’s lofty index valuation levels represent a grand illusion relative to prevailing and forthcoming economic underpinnings. Either way, our macro and micro analysis suggest that investors are simply too optimistic about stocks generally, boosting overall risks. Marke...

05/15/2024

Check out our latest article, "A Constant Battle", by RJ Steinhoff, Head of Research.

Successful investment strategies are dependent on a robust infrastructure. Outperformance is the accumulation of many small edges, so every component of the investment process is critical, and must be continuously analyzed for areas of improvement.

11/28/2023

Check out our latest article, "Extending Duration" by RJ Steinhoff, Head of Research

We expect the Bank of Canada to stand pat with interest rates, and there’s a strong possibility of cuts starting in 2024. Consequently, we have switched our duration stance from below benchmark to above; we’re now targeting investment grade bonds with duration greater than 7 years.

10/26/2023

Check out our latest Meet the Expert series article, "RJ Steinhoff, CFA on the Investment Grade Income Model"

As safer and less volatile income securities, investors cannot expect the same total return that other income alternatives like high yield bonds, high dividend yielding equities, real estate, or infrastructure provide over an expansionary economic cycle. However, over the entire economic cycle, inve...

09/25/2023

Check out "Aversion to Reversion", excerpted and edited from our quarterly newsletter to clients dated August 24, 2023.

Most don’t practice value investing—instead relying on buy and hold, momentum, or index strategies, all much easier on the psyche in the short term. To us, it’s simple common sense to embrace mean-reversion strategies—those offering better upside potential, especially during a period when mo...

08/09/2023

Join virtually on August 9th to hear about how investor outlooks have changed amidst uncertain economic conditions and how Generation PMCA is positioning its investments for Canadian investors so they can still grow while protecting the downside. Register: https://bit.ly/43RhBhI

03/13/2023

Check out our latest article, "Tall Expectations Warrant Short Exposure" by RJ Steinhoff, Head of Research.

Many indicators of past economic slowdowns are now sounding an alarm. Yield curves in most major economies around the world are inverted. Despite these bright red lights, investors appear sanguine.

02/21/2023

Check out "Are We Having a Recession Or Not?", excerpted and edited from our quarterly newsletter to clients dated February 14, 2023.

Globally, growth is waning, though at a tepid pace because of the prior avalanche of government stimulus, rebuilding of supplies, and extremely low unemployment. Will central bank restraint lead to a mere petering out of growth, if inflation is quickly perceived to have been ameliorated, or is reces...

12/09/2022

Check out "Up and Down," excerpted and edited from our quarterly newsletter to clients dated November 18, 2022.

And up and down. Like a toilet seat, yo-yo, a game of Snakes & Ladders, not straight up and down like an elevator, but more like the ups and downs of a rollercoaster—that’s how the financial markets have felt lately. Unusually volatile, reacting to headlines related to inflation, rising interest...

11/15/2022

Learn how Generation PMCA is tackling controversial ESG issues.

ESG—THE GENERATION WAY ESG vendors and ESG managers/ETFs have come under scrutiny for opaque processes, poor performance, and priorities that are not necessarily aligned with investor needs. Many have questioned whether an ESG strategy should even be considered. We believe one should always contem...

09/15/2022

Check out "Depressing the Optimists," excerpted and edited from our quarterly newsletter to clients dated August 19, 2022.

Our glass is typically half full. Lately, the contents have been evaporating. What would fill it again? Either a substantial market decline lowering valuations, or a sudden reduction in core inflation levels along with a commensurate decline in interest rates. Neither are likely to occur in the shor...