Over the years we have
tended to find our best deep value stocks in markets where people were most
negative. Presently, we believe that far too many investors are overly
pessimistic on the U.S. equity market. This negativity, we believe, is
particularly true for U.S. small capitalization stocks.
Currently, we are
uncovering 3 or 4 undervalued American stocks for each Canadian one we find.
With the pending passage of the Canadian federal budget and the elimination of
the 30% foreign content restriction for Canadian RSPs and pensions, an
opportunity is being presented. Accordingly, we intend to adjust our
country mix in our two Canadian funds to a weighting of 50-50 U.S. and Canadian
stocks. |
