The bear market in the Canadian dollar has passed its period of maximum pessimism, and important bottoming action should begin soon.   Over the last four years, the Canadian dollar has been deteriorating at an ever steeper slope. Bearishness has fed upon itself and the result has been a curvilinear descent that has become so steep that the summary trend line is almost vertical. Everybody is now familiar with the perils of a resourced based economy during a period of moribund global growth.

THE NORMAL STOCK MARKET PERIODS OF 20% OR SO CORRECTIONS HAVE BEEN “PUT OFF” BY THE CORPORATE BUYBACKS COUPLED WITH NEAR ZERO INTEREST RATES. HISTORICALLY, SEVERE CORRECTIONS AND EVEN BEAR MARKETS OFFER TREMENDOUS OPPORTUNITIES TO INVEST WHILE STOCKS ARE “ON SALE.”  BECAUSE OF THE ABUSE OF THE “BUYBACKS,” WE WILL SOON SEE THE “PAYBACKS’ THAT MANY OF  THOSE  “BUYBACK” COMPANIES’ STOCKS WILL HAVE TO ENDURE.

In analyzing smaller companies, in particular those that have not yet achieved commercial success, comprehensive analysis requires attentive monitoring of the “buys and sells” of the officers and directors personally owned shares. Yes, their personally owned shares! We comment below on the notable amount of shares bought by the officers and directors of Cartier Resources, Niogold Mining and Yorbeau Resources.

In his more than four decades of successful financial management, Claude Lemire has seen it all; perhaps too much at times. Claude was a founder and later president of the very successful Canagex Placements, a $14 billion Montreal based money management firm that was later acquired.