Q1 Market Commentary By Tall Oak

As long-term fundamental investors with near three decades of experience, multiple cycles and 70+ years of combined investment experience, the team has witnessed many challenging moments. Before we dive into the challenges facing investors today, it is extremely important to stress the key investment pillars for us as investment professionals.

  1. Time in the market, not timing the market is most important to long-term wealth creation. Every cycle since the crash of 1929 has been followed by a strong recovery.
  2. Markets always exhibit either greed or fear. Last year we prepared portfolios for the coming fear and today, we scour the markets looking for great long-term investments while the market is fearful. We relish these opportunities; great businesses are coming closer to great prices.
  3. This too shall pass. We can show over the long term that markets are upward sloping. Inflation is real and we believe the equity market is the best hedge against inflation for patient long-term investors.

While we navigate these challenging times, we work to preserve capital for the next big uptrend, by investing in what we believe are the highest quality businesses with strong balance sheets, wide moats and proven business models and management teams. As we show in our commentary, some of the companies we own, benefit from the changing regime we have been discussing over the last year.

Lastly, the market for many recent years has been driven primarily by very large mega capitalization stocks. The market levels you hear or read about are not the entire market. We expect and have expected a divergence in outcomes for broad markets versus a collection of strong, well-priced companies, with excellent prospects for some time. Our job is to find them on behalf of our investors’ base as more and more opportunities are arising every day.

We welcome those of you who would like a more in-depth view into these comments to read the detailed report here:

The views expressed in this commentary are those of Tall Oak Capital Advisors as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Statistics, factual data and other information are from sources Tall Oak believes to be reliable but their accuracy cannot be guaranteed. This commentary is intended for distribution only in those jurisdictions where Tall Oak Capital Advisors are registered. Securities-related products and services are offered through Raymond James Correspondent Services Ltd., member Canadian Investor Protection Fund. Insurance products and services are offered through Gryphin Advantage Inc., which is not a member-Canadian Investor Protection Fund. This commentary may provide links to other Internet sites for the convenience of users. Tall Oak Capital Advisors is not responsible for the availability or content of these external sites, nor does Tall Oak Capital Advisors endorse, warrant or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same Privacy Policy which Tall Oak Capital Advisors adheres to.