# TSX Underperformance



## rhvic (Oct 7, 2014)

*DOW minus TSX*

I have noted over my years of investing that the values of the DOW and TSX300 tend to track each other, but with quite some differences.

Now I realize that market indexes may not be the best way of comparing markets. The DOW only covers 30 stocks, whereas the TSX covers 300 - hardly representative of the broader markets at all. But it is a place to start.

I have noted over the years that sometimes the DOW number is far above the TSX, and other times the TSX is higher. So I have made a graph, using data from the web, of the monthly values of each index, and plotted them. The more interesting plot though is the difference between the two lines. Yes, it is an artificial construct, but I think it reflects the relative merits of the manufacturing-based DOW against the commodity-based TSX. I was looking for any periodicty which might show when one market is preferred to the other. I have not seen this analysis done anywhere else, but if someone has already done this, my apologies.









On the graph, the TSX is higher than the DOW for about ten years (1984-1995), then the DOW is higher for most of the next ten years. This is followed by about six years of the TSX being higher again, after which the DOW climbs back sharply above the TSX to where it is today.

Any thoughts?


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## Rhaegar (Feb 21, 2014)

Your chart should begin with both indexes at the same point and track it based on a relative % scale. 

Comparing the actual number value of the index is utterly meaningless.



For example I just put both into a compare on google finance and from 1999 to present (the max view it will show me) the TSX has been above the DOW the entire time, with a final return of 80% for the dow and 120% for the TSX.


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## gibor365 (Apr 1, 2011)

If you do comparisson , you have to do it in "neutral" currency.... Just over last 15 years FX rate was from 0.6 to 1.2


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## Rhaegar (Feb 21, 2014)

gibor said:


> If you do comparisson , you have to do it in "neutral" currency.... Just over last 15 years FX rate was from 0.6 to 1.2


Yes, that is also a factor.


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## cheech10 (Dec 31, 2010)

Also the Dow is price-weighted, which is a really strange way to weight an index, compared to a cap-weighted TSX.


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## rhvic (Oct 7, 2014)

I appreciate the comments from others on my graph; all valid points.

That said, it is interesting to update the current point difference between these two indexes - the difference is now nearly 5400 points (DOW at 20837 and TSX at 15463). A far cry from when the DOW was 2000 points lower than the TSX - a change of over 7400 points in the difference!

Makes one wish that investments were in the US market rather than the Canadian.


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## gibor365 (Apr 1, 2011)

> Makes one wish that investments were in the US market rather than the Canadian.


 True! I wish I'd buy even US MM in 2007


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## lonewolf :) (Sep 13, 2016)

I think best to look @ price pattern of each index individually then based on price structure make investment moves when appropriate


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## Spudd (Oct 11, 2011)

The other thing is that the DOW is price weighted while the TSX is market cap weighted. It would make more sense to compare the S&P 500 vs the TSX as those are both market-weighted indexes.


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## rhvic (Oct 7, 2014)

In Feb 2017 I noted that the difference between the two indexes had risen to 5400. Well today it is close to 6700. And that with the Donald running the US economy. Difficult to explain.

Surprised some Wall Street firm hasn't started to market derivative futures based on the difference.


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## rhvic (Oct 7, 2014)

Well here it is just four months later, and the difference has now risen to about 8000. This is getting absurd. Does this spell BUBBLE?


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## zylon (Oct 27, 2010)

*In Canada, it's all about "stuff".*


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## robfordlives (Sep 18, 2014)

Historically the Canadian market has outperformed both the S&P and DJIA up until 2010. Since then the S&P has beat the TSX by nearly 70% on an absolute return and in only one of those years has the TSX beat the S&P. This is obviously due to the TSX's heavy weighting in Energy. Despite doubling of WTI in the last couple years alot of the energy names have done much of nothing. Meanwhile dividend growth in some of the stalwart companies such as telcos, banks and pipelines has been strong and currently the index is yielding approximately 2.7%

Can we expect some kind of reversion to the mean where the Canadian market outperforms the US markets in the next 5-10 years?


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## doctrine (Sep 30, 2011)

If oil and commodities come into demand, then very likely. Gold and oil haven't been doing very well, unfortunately. Although oil has doubled, it is still half what it was in 2014. I am optimistic on oil over the next 3-4 years, I think avoiding the TSX would be a bad idea; if oil returns to $80, it has a long way to go.


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## robfordlives (Sep 18, 2014)

Despite doubling of WTI, oil stocks have not participated much in this rally of the base commodity. Hopefully with leaner structures they will do so shortly. In addition the best performance for the TSX was always in higher inflationary periods and I suspect inflation will rear itself up - all the factors that would cause inflation seem to be there at this time.


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## GoldStone (Mar 6, 2011)

Your opening statement is not really true. From 1970 to 2010, S&P 500 and TSX are neck and neck. 9.77% vs 9.86% annualized, both measured in Canadian dollars.

Going forward, who knows. I can see a wide range of outcomes. Wild cards: oil and other commodities, NAFTA, real estate market.


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## james4beach (Nov 15, 2012)

Also consider the 15 years, 2003 to 2018

TSX 60 (using XIU) 15 year annual return is 8.98%
S&P 500 (using SPY) 15 year annual return is 9.74% in USD, however it's 8.07% annual in CAD.

As GoldStone said, the performances are awfully close. Over the last 15 years counting up to Friday, the TSX has returned more than the S&P 500. And even more once you consider the tax advantages of XIU with eligible dividends vs SPY and foreign income.

I continue to have no hesitation recommending XIU as a core holding.


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## OnlyMyOpinion (Sep 1, 2013)

robfordlives said:


> .


Wow, first time I'm aware of a ghost post. 
OP you have 2 prior posts back in 2014. 
Then Rob Ford died March 2016.
Here you are in 2018.:eek2:


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## Jimmy (May 19, 2017)

The S&P 500 has trounced the TSX in most periods. In $ CDN % , 5 yrs 21.92 to 8.79 , 10 yrs 11.08 to 4.66, 30 yrs 10.86 to 8.52. Was only less minimally in the 20 yrs period, 6.69 to 7.13. 

Right now though it is overvalued after 17.73 % last year so TSX is probably a better bet.


Click on Nov 2017 " Market Statistics November 2017"

https://www.pwlcapital.com/en/The-Firm/Market-Statistics


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## rhvic (Oct 7, 2014)

Another three months, and the difference is now over 9000. The absurdity continues. The difference has grown by about 3600 in 10.5 months.

Is the US market really that much better, on a percentage growth basis?


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## james4beach (Nov 15, 2012)

rhvic said:


> Is the US market really that much better, on a percentage growth basis?


Not over the long term, no. For time periods like 15 or 20 years, the Canadian and US markets have performed about the same. The same is true even in much longer term (100+ year) analyses. Basically, Canadian and US equity markets have about the same long term performance.

If one were to assume that they will continue to have the same performance (reversion to the mean) this would suggest lightening up on the US and loading up more on Canada.


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## james4beach (Nov 15, 2012)

I merged two threads that seemed to be on the same matter, Canada under-performing the US.


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## rhvic (Oct 7, 2014)

The Dow accelerated past the TSX by another 500 points just in the past week; the difference is now about 9500. Can this continue at this pace?

Are there any derivatives or other investments which track this disparity bwteen Dow and TSX?


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## robfordlives (Sep 18, 2014)

rhvic said:


> The Dow accelerated past the TSX by another 500 points just in the past week; the difference is now about 9500. Can this continue at this pace?
> 
> Are there any derivatives or other investments which track this disparity bwteen Dow and TSX?


It's been disheartening to see oil double in price yet the energy stocks have not done much of anything and they make a big part of the index. Likely because alot of them get WCS price and not WTI? Financials also have some headwinds with the new mortgage rules and possible housing bubble, however higher inflation/interest should be good for both financials and commodities which in theory should mean TSX out-performance as has been the case in previous such cycles.

Someone mentioned DJIA is not a good index due to how it's structured differently than say the S&P. I don't quite understand that - can anyone explain?


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## rhvic (Oct 7, 2014)

This is ludicrous - another ten days, and now the difference between the Dow and TSX is 10200! A further increase of 700. In less than two months (since the end of November) the Dow has increased 2200 points more than the TSX!

This can only be very painful indeed when the US market comes crashing back to reality. Or is it that the Canadian markets will surge forward to catch up?


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## doctrine (Sep 30, 2011)

rhvic said:


> This is ludicrous - another ten days, and now the difference between the Dow and TSX is 10200! A further increase of 700. In less than two months (since the end of November) the Dow has increased 2200 points more than the TSX!
> 
> This can only be very painful indeed when the US market comes crashing back to reality. Or is it that the Canadian markets will surge forward to catch up?


Turns out, cutting federal taxes by 40% has a huge impact. Unless Canada does the same, do not expect the trend to change. In fact, it might get worse, because the US economy may surge forward and the incremental investment dollar will flow from Canada to the US. The strong Canadian dollar, and weak Canadian oil price makes it all worse. 

Things could not be better for the US, and worse for Canada. The high Canadian dollar is a great opportunity to buy more foreign assets.


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## james4beach (Nov 15, 2012)

These things always seem to mean-revert over long enough time. The MSCI EAFE was doing very badly for a long time (EFA or XIN in Canada) and I kept complaining about it. Then it just started going wild, and the 5 year return of XIN is now 10.5% per year.

I'm still inclined to think that, if anything, these are good times to direct new investment money into the Canadian allocation rather than the US at all time highs. Sure, perhaps it underperforms for a few years, but these are 20 year games we play.


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## gibor365 (Apr 1, 2011)

rhvic said:


> This is ludicrous - another ten days, and now the difference between the Dow and TSX is 10200! A further increase of 700. In less than two months (since the end of November) the Dow has increased 2200 points more than the TSX!
> 
> This can only be very painful indeed when the US market comes crashing back to reality. Or is it that the Canadian markets will surge forward to catch up?


YTD SPY is up 6% (about the same other developed countries), TSX practically flat , and this is despite that major Canadian asset - oil is up almost 10%! , Without it TSX would be down 4-5%
IMHO, Canadian market is not gonna surge anywhere... on the opposite it will lag more and more... new NAFTA will screw it even more....
and CAD$ is extremely overvalued


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## GoldStone (Mar 6, 2011)

rhvic said:


> This is ludicrous - another ten days, and now the difference between the Dow and TSX is 10200! A further increase of 700. In less than two months (since the end of November) the Dow has increased 2200 points more than the TSX!
> 
> This can only be very painful indeed when the US market comes crashing back to reality. Or is it that the Canadian markets will surge forward to catch up?


US market capitalization is 52% of the world stock market. Canada is 3.2%.

What is *your* allocation to US and Canadian equities? Does it suffer from the home country bias?


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## Eder (Feb 16, 2011)

I like it lagging...I can and have been buying stuff like BCE & Fortis cheaper yet all my equities are paying dividends and in most cases increasing them. Why would you want stocks becoming 40% more expensive right now?

For those starting out investing many blue chip Canadian based corporations have pulled back to allow a less risky entry point.


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## robfordlives (Sep 18, 2014)

Eder said:


> I like it lagging...I can and have been buying stuff like BCE & Fortis cheaper yet all my equities are paying dividends and in most cases increasing them. Why would you want stocks becoming 40% more expensive right now?
> 
> For those starting out investing many blue chip Canadian based corporations have pulled back to allow a less risky entry point.


I own both of these and have no plans to sell but I would not be surprised if they get absolutely destroyed in the rising interest rate environment. Canada will continue to do poorly as they clearly have a CLOSED FOR BUSINESS (higher taxes, more regs and forced equality measures) sign up at the moment relative to the US. As hopefully as I am for a revision to the mean I highly doubt it will happen as the macro environment has permanently changed.


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## birdman (Feb 12, 2013)

robfordlives said:


> I own both of these and have no plans to sell but I would not be surprised if they get absolutely destroyed in the rising interest rate environment. Canada will continue to do poorly as they clearly have a CLOSED FOR BUSINESS (higher taxes, more regs and forced equality measures) sign up at the moment relative to the US. As hopefully as I am for a revision to the mean I highly doubt it will happen as the macro environment has permanently changed.


Not so sure that rising rates will have a huge impact as I expect businesses, like banks, and presumably companies who have high capital requirements, manage the risk. Spent a few minutes reviewing FTS statements which show a total of $21 million in long term debt of which 17 million has maturities in excess of 5 yrs. Some of their long term debt goes out to 2040 and I expect for the most part is at a fixed rate. Complex statements which I do not intend to spend days trying to understand.


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## robfordlives (Sep 18, 2014)

frase said:


> Not so sure that rising rates will have a huge impact as I expect businesses, like banks, and presumably companies who have high capital requirements, manage the risk. Spent a few minutes reviewing FTS statements which show a total of $21 million in long term debt of which 17 million has maturities in excess of 5 yrs. Some of their long term debt goes out to 2040 and I expect for the most part is at a fixed rate. Complex statements which I do not intend to spend days trying to understand.


Banks will do fantastic in the same environment and I am overweight. It's not so much the cost equation that will do the damage, it's that these companies are bond proxies and as bonds pay higher distributions these proxies look much less attractive. Why take the equity risk for a utility that pays around 4% when you can get a risk free 3% from a bond? Having said that I still own FTS and other utilities as there is a place for them in a well rounded portfolio I think


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## gibor365 (Apr 1, 2011)

> Why take the equity risk for a utility that pays around 4% when you can get a risk free 3% from a bond? Having said that I still own FTS and other utilities as there is a place for them in a well rounded portfolio I think


Because utilities not only pay dividends, but also increase them every year, for example 3 most popular utilities FTS, CU,EMA have 10 years average dividend growth 7-9% .... with bond , you gonna get those 3% for 10 years.
You can buy BBB bond with similar like utilities yield (like fairfax or REIT), but I'm not sure if chances that FTS, CU,EMA cut dividends are higher than some BBB bond will go belly up


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## milhouse (Nov 16, 2016)

Eder said:


> I like it lagging...I can and have been buying stuff like BCE & Fortis cheaper yet all my equities are paying dividends and in most cases increasing them. Why would you want stocks becoming 40% more expensive right now?
> 
> For those starting out investing many blue chip Canadian based corporations have pulled back to allow a less risky entry point.


I was thinking the same thing as I'm still in accumulation phase/growing my nest egg and buy individual stocks on the TSX. Personally, if the companies of the stocks I own/want to buy are looking solid, growing their divies, etc, I'm not too concerned that share prices are lagging. I might be more so if I held a TSX index etf (which I did in previous years and got tired of the underperformance. lol). But as was stated, it's cyclical. 

And others in retirement looking reap some gains for cash might not feel the same.


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## robfordlives (Sep 18, 2014)

milhouse said:


> I was thinking the same thing as I'm still in accumulation phase/growing my nest egg and buy individual stocks on the TSX. Personally, if the companies of the stocks I own/want to buy are looking solid, growing their divies, etc, I'm not too concerned that share prices are lagging. I might be more so if I held a TSX index etf (which I did in previous years and got tired of the underperformance. lol). But as was stated, it's cyclical.
> 
> And others in retirement looking reap some gains for cash might not feel the same.


It comes down to the old argument of total return versus dividend growth focused investment. We know where Buffet stands on this. I have come to the realisation that it's total return that matters most and these dividend growth stocks do not provide increased protection during a downturn....and they have had abnormal returns during a declining interest rate environment the last twenty years.


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## milhouse (Nov 16, 2016)

robfordlives said:


> It comes down to the old argument of total return versus dividend growth focused investment. We know where Buffet stands on this. I have come to the realisation that it's total return that matters most and these dividend growth stocks do not provide increased protection during a downturn....and they have had abnormal returns during a declining interest rate environment the last twenty years.


I'd have to disagree in that this is a total return versus dividend growth discussion (wrt to Eder's comment and mine).
Instead it's about identifying solid companies that are potentially being undervalued. However we can debate if a growing dividend is a good indicator of that. And the other side of the discussion is that the TSX is not broadly represented by a wide range of sectors and its performance can be dependent on how a few sectors perform.


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## Eder (Feb 16, 2011)

I guess Buffets advice to be opposite to the herd doesn't resonate with everyone, but it is most likely the soundest advice I have read and try to follow to fund my retirement.


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## john.cray (Dec 7, 2016)

It seems to me that this week has been particularly bad for TSX equities. Both XIC and my X-pack are well in the red.

Anybody managing to stay above water ?


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## Dilbert (Nov 20, 2016)

Ugh, it’s been awful. Glad I have some cash and US weighting....


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## john.cray (Dec 7, 2016)

Dilbert said:


> Ugh, it’s been awful. Glad I have some cash and US weighting....


Good for you on the US side. I've been timing the US market for my initial entry since Trump's election. So far I have failed miserably. Market timing doesn't work, eh ?


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## gibor365 (Apr 1, 2011)

john.cray said:


> It seems to me that this week has been particularly bad for TSX equities. Both XIC and my X-pack are well in the red.
> 
> Anybody managing to stay above water ?


Yes, TSX is already down 2% YTD, starting yesterday my portfolio is also in negative territory, but much less than TSX , thanks to some US/International holdings (even though raising CDN$ depressing them a bit)...
On the other hand, my dividend income is up 5% comparing to Jan 17


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## gibor365 (Apr 1, 2011)

_The TSX Composite staggered badly out of the gate in 2018, falling nearly 1.6 per cent to post the fourth-worst performance to start the year among 93 global exchanges. _
After today it may take a lead as the worst performing market in the World , and WTI is doing pretty good....

https://www.bnn.ca/tsx-starts-2018-as-the-fourth-worst-performing-global-market-1.985108


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## Dilbert (Nov 20, 2016)

john.cray said:


> Good for you on the US side. I've been timing the US market for my initial entry since Trump's election. So far I have failed miserably. Market timing doesn't work, eh ?


I can’t take any credit for the US holdings, they consist of grants from my employer that have restricted trading periods....turns out to be a good problem to have.:friendly_wink:


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## robfordlives (Sep 18, 2014)

Problem is many of us are facing huge tax bills if we liquidate more of TSX index. I think CCP needs to seriously re-look at their recommended portfolios as all you hear about is how the index is garbage yet they recommend it???


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## GoldStone (Mar 6, 2011)

I'm not sure I buy this narrative but FWIW...

*Blame the 'Trudeau Effect' for why Canadian stocks are doing worse than the rest*



> George Athanassakos: Trudeau's policies hurt productivity and undermine the competitiveness of the Canadian economy


George Athanassakos is Managing Director of the Ben Graham Centre for Value Investing and a professor of finance at the Ivey Business School at Western University.


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## gibor365 (Apr 1, 2011)

GoldStone said:


> I'm not sure I buy this narrative but FWIW...
> 
> *Blame the 'Trudeau Effect' for why Canadian stocks are doing worse than the rest*
> 
> ...


I was blaming him fo a long time


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## stantistic (Sep 19, 2015)

*Total Return*

I notice that in this thread and elsewhere, where "total return" is required over significant time period, the only way to obtain it (as far as I know), is to manually calculate it. This can be laborious. For a given Canadian stock, is there a website which expedites the process? 
.


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## robfordlives (Sep 18, 2014)

If the TSX is so cheap according to some, why have there been virtually no buybacks in the last few years??? Shouldn't these companies be buying their stocks super cheap now to boost the share price?


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## Eclectic12 (Oct 20, 2010)

Or maybe there hasn't been enough research to conclude there are "virtually no buybacks'?

Seems weird for there to be a G&M article suggesting a TSX buyback index ETF ... if there are no buybacks. 
https://www.fool.ca/2018/01/17/3-tsx-stocks-to-own-that-make-money-from-buybacks/

It would seem there is a fair number of TSX buybacks if the columnist is going to:
a) highlight the First Asset Canadian Buyback Index ETF.
b) have picked the best two last year then do a repeat for this year.
https://ca.finance.yahoo.com/news/tsx-2-best-buyback-stocks-163325975.html

The four companies from the article are Onex, CP Rail, Magna International and Metro.
Dollarama is reported as having spent $2.6 Billion over the last six years on buybacks.


Cheers


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## doctrine (Sep 30, 2011)

robfordlives said:


> If the TSX is so cheap according to some, why have there been virtually no buybacks in the last few years??? Shouldn't these companies be buying their stocks super cheap now to boost the share price?


Or, maybe most Canadian companies have chosen not to bankrupt their balance sheets with buybacks at relatively still high prices. Many S&P 500 companies have basically no book value anymore.

Look at Boeing and Home Depot, for example. Combined market cap of $400 billion, and barely $5 billion of actual net shareholder equity, because of share buybacks. $400B of company value that is basically worth zero if they sold all of their assets today, including IP and intangibles, at full value, after paying down debt. Very scary.

Dollarama is an example of a Canadian company that has also gone shareholder equity negative recently. If they sold their brand, every store, and all inventory at full value, there would be nothing left.


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## james4beach (Nov 15, 2012)

doctrine said:


> Or, maybe most Canadian companies have chosen not to bankrupt their balance sheets with buybacks at relatively still high prices. Many S&P 500 companies have basically no book value anymore.


Right. The big US companies have played many games to juice their shares in the last few years. And taken lots of new debt to do so.


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## My Own Advisor (Sep 24, 2012)

As long as interest rates remain low James I'm not too worried. If we continue to see a few 25 basis pt. hikes every year for the next few years, it could be an issue for some companies.


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## Koogie (Dec 15, 2014)

My Own Advisor said:


> As long as interest rates remain low James I'm not too worried. If we continue to see a few 25 basis pt. hikes every year for the next few years, it could be an issue for some companies.


That is what I am worried about, as well. I've pretty much decided to cull two of my interest rate sensitive stocks.
As they say, it's only when the tide goes out that you see who has been swimming naked.


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## john.cray (Dec 7, 2016)

robfordlives said:


> If the TSX is so cheap according to some, why have there been virtually no buybacks in the last few years??? Shouldn't these companies be buying their stocks super cheap now to boost the share price?


Exco (XTC) is initiating a repurchase of 1M shares
There you go : https://globenewswire.com/news-rele...mited-Announces-Normal-Course-Issuer-Bid.html


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## robfordlives (Sep 18, 2014)

Koogie said:


> That is what I am worried about, as well. I've pretty much decided to cull two of my interest rate sensitive stocks.
> As they say, it's only when the tide goes out that you see who has been swimming naked.



Curious as to what those are. I'm in the same boat and on the fence. If we are headed for something bad typically things like utilities whether the storm better than most.


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## robfordlives (Sep 18, 2014)

So XIU on google finance shows 17.34% return for 10 year chart. PH&N Bond fund (bond ETF's don't seem to have much of a history in CAnada so pulled up PH&N as "good enough") has annualized 4.4% return in the last decade. Brutal stuff...in Canada there is no equity risk premium I guess.


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## james4beach (Nov 15, 2012)

robfordlives said:


> So XIU on google finance shows 17.34% return for 10 year chart. PH&N Bond fund (bond ETF's don't seem to have much of a history in CAnada so pulled up PH&N as "good enough") has annualized 4.4% return in the last decade. Brutal stuff...in Canada there is no equity risk premium I guess.


Google Finance is really bad for ETFs and their data quality has been getting progressively worse. I suggest using Morningstar or the ETF issuer's own web site.

But yeah, the 10 year performance is bad. XIU has 4.4% annual return over the last 10 years and XBB 4.1% so that's very much a lost decade for Canadian stocks. A fixed income investor has done about as well as a stock investor! However this time period starts right at the TSX peak before the 2008 bear market.

If you look at 15 year performance, XIU annual return was 8.68% and XBB 4.68% so obviously Canadian equities performed quite strongly in that period. Mind you the same (reverse) criticism exists, which is that this time period starts right at the low in the stock market


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## Spudd (Oct 11, 2011)

stantistic said:


> I notice that in this thread and elsewhere, where "total return" is required over significant time period, the only way to obtain it (as far as I know), is to manually calculate it. This can be laborious. For a given Canadian stock, is there a website which expedites the process?
> .


LongRunData.com used to do this super well, but it seems like it's no longer working. Still, worth keeping in your back pocket in case they bring it back to life. 

StockCharts.com shows its charts in total return, not just price, by default. So you could chart the stock in question and calculate the total return yourself.


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## stantistic (Sep 19, 2015)

​Thanks Spudd. But as far as I can see, Stockcharts.com will only go back 5 years.


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## GoldStone (Mar 6, 2011)

stantistic said:


> ​Thanks Spudd. But as far as I can see, Stockcharts.com will only go back 5 years.


Morningstar Canada goes back 15 years. For example, here's TD.

http://quote.morningstar.ca/Quicktakes/stock/perf.aspx?t=TD&region=CAN


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## Jimmy (May 19, 2017)

stantistic said:


> ​Thanks Spudd. But as far as I can see, Stockcharts.com will only go back 5 years.


In the 'performance' charts? I know in the sharp charts you can add 'Price - performance' as an indicator and set teh range to any period. So you get price and Performance %. Unless there is an easier way to do this


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## james4beach (Nov 15, 2012)

stantistic said:


> ​Thanks Spudd. But as far as I can see, Stockcharts.com will only go back 5 years.


It goes back much further but you have to manually enter the start date. Here's an example, showing total return of WCN over the last 10 years: http://schrts.co/zwxMU1

This shows 231.66% total cumulative return including divs. To annualize this, convert that to the return as a ratio, which is: 3.3166 (remember that 100% return is a 2.0 ratio because you doubled your money). Use the formula:
CAGR = RATIO^(1/YEARS) - 1
= 3.3166^(1/10) -1 = 12.7% annual return

Sometimes Morningstar has longer history, sometimes Stockcharts does. However I don't always see agreement between them. Someone let me know if my above calculation is wrong 

One thing stockcharts will not adjust for are internal distributions in ETFs. But I think on regular stocks, they include dividends and the numbers they show seem about as accurate as anything you can hope to find online.


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## stantistic (Sep 19, 2015)

*CBC view of underperformance*

​http://www.cbc.ca/news/business/canada-stock-market-performance-laggard-1.4526473


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