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Thomas S. Caldwell, C.M.

Back in December 2018 you wrote a piece that was published in the Globe and Mail Opinion called “Making sense of the current market volatility”. Seems like nothing has changed regarding volatility over the past year.

Posted: March 3, 2020

Making sense of the current market volatility

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A transcript of this episode is available below, modified for a more enjoyable reading experience. For more posts exploring the ideas we talk about in the episode, check out our Related Reads links.

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Thomas Caldwell
Thomas S. Caldwell, C.M.

Chairman & Founder, Director

Thomas S. Caldwell graduated from McGill University in 1965, and has been actively involved in the investment industry since that time.
Mr. Caldwell is Chairman of Caldwell Investment Management Ltd., an organization founded in 1990. Caldwell Investment Management Ltd. is a diversified investment company providing investment management to a broad spectrum of investors throughout Canada.
In 2014, Mr. Caldwell was inducted into the IIAC Investment Industry Hall of Fame.
Mr. Caldwell is CEO and a Director of Urbana Corporation, a publicly traded investment company and Chairman of the Canadian Securities Exchange (“CSE”), “The Exchange for Entrepreneurs”. He also serves on the Board of the Conference of Defence Associations Institute in Ottawa. Mr. Caldwell was appointed Honorary Lieutenant-Colonel of The Lincoln and Welland Regiment in January 2014.
Mr. Caldwell is a past Governor of the Toronto Stock Exchange and one of the leading experts in capital markets, particularly in trading environments. He is recognized as one of the world’s foremost investors in securities exchanges. Mr. Caldwell manages the investment pools he is responsible for on a value/strategic overview basis.
Caldwell Investment Management Ltd. and its affiliates were the second-largest owners of the New York Stock Exchange prior to the NYSE’s demutualization.
Mr. Caldwell has, through his career, been actively involved in addressing social and community needs.
He was awarded Her Majesty’s Golden Jubilee Medal in 2002 for his activities on behalf of Canadian Veterans. In 2003 he was appointed a Member of the Order of Canada for his work in assisting those in need as well as contributing to institutions working to better the lives of others. In 2012, he received Her Majesty’s Diamond Jubilee for his efforts on behalf of the disadvantaged.
Mr. Caldwell and his wife Dorothy have been married since 1966 and have two sons, Brendan and Theo, and four grandchildren.

00:16 Absolutely. The theme of that article still holds the volatility is essentially technical in nature and what I mean by that is exchange traded funds have to liquidate when their underlying holders want to sell and a lot of these are people trading on emotion.
00:31 So the ETF offs are big sellers algorithmic trading program to words program to all kinds of variables they sell automatically and of course the hedge funds join in. So essentially what I mean by technical is it's market participants dealing in the stock market prices. It is not necessarily connected to the fundamentals of individual industries or companies. That means these technical induced swings in market provide an opportunity to position in good companies or to switch from ones that haven't declined as much to the ones who have been massacred.
01:07 So there's a great opportunity here to really upgrade a portfolio and acquire fundamental values at almost bargain basement prices.