One of Canada’s most famous investors got burned by the so-called Trump Bump. Prem Watsa’s Fairfax Financial suffered more than a billion dollars in losses on its investments in the fourth quarter. Watsa is blaming the hit on “fundamental changes in the U.S.” The post-election run-up has also convinced him to abandon his bearish view of the markets: Watsa says Fairfax has dropped all its defensive equity hedges.

To put things into context, consider what Watsa said on Nov. 3 in Fairfax’s third-quarter earnings release:

"We are maintaining our defensive equity hedges and deflation protection as we remain concerned about the financial markets and the economic outlook in this global deflationary environment.”

Not attributable to Watsa, but here’s more from that earnings release: “In response to the significant appreciation in equity market valuations and uncertainty in the economy, the company has hedged its equity investment exposure. At September 30, 2016 equity hedges represented 112.7 [per cent] of the company's equity and equity-related holdings.”

Jameson Berkow will take the lead on this on monitor Fairfax’s conference call at 8:30 a.m. ET. Click here for more on Watsa’s new approach.

TSX GOES EIGHT FOR EIGHT

It was hit or miss for most of the afternoon, but the TSX notched another gain yesterday. Making it eight in a row and five straight record closes. This matches the winning streak that ran from Feb. 25 - Mar. 7 last year. Still a way to go before TSX takes out the next milestone: The 12-session streak that went from Feb. 4-20, 2014.

---

BNN ADVISOR: ROBO ADVISORS VERSUS THE REAL THING

Finding a hybrid model that works

The great debate: What happens when clients see their fees for the first time?

The great debate: Providing value for the dollars

---

BLACKBERRY FACING CLASS ACTION

Ottawa-based Nelligan O’Brien Payne LLP is launching a class action against BlackBerry, alleging some 300 workers were transferred to Ford, only to find out that they had effectively resigned and thus would lose recognition for their years of service. “BlackBerry has breached its duties of good faith and honesty, and has knowingly misled the employees,” Nelligan O’Brien states in its press release. We are seeking comment from BlackBerry.

RELEASES/EVENTS:

- Notable earnings: Enbridge, Air Canada, Deere & Co.

- Notable data: Canadian international securities transactions

- 6 a.m. ET: Trudeau arrives at German Chancellery in Berlin

- 6:20 a.m. ET: Trudeau holds working lunch with Angela Merkel

- 7:30 a.m. ET: Trudeau, Merkel news conference

- 8:30 a.m. ET: Fairfax Financial earnings conference call

- 1 p.m. ET: Agriculture and Agri-Food Canada releases 2017 Canadian Agricultural Outlook

- 2 p.m. ET: Trudeau delivers speech in Hamburg

Every morning Commodities host Andrew Bell writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Today's note was written by BNN's Managing Editor Noah Zivitz. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.