Posted on: August 13, 2018
Our previous article looked at the increase in market volatility in 2018 in historical terms to put it in perspective. The other factor to consider is where are we in the market cycle and what this might mean for you personally in terms of your own long-term financial strategy.
Many market commentators suggest that we are past the half-way mark as far as the longevity of this equity market run since mid-2009. If history is any guide, there is very likely more time left before the next recession or bear market (defined as a 20% or more correction in the equity markets).
Posted on: July 9, 2018
This year began with some market turbulence resulting in a correction in the S&P Index in late January of about 10%, and about 7% for the TSX during the same period. You would have thought the world was ending with all the hand-wringing and hysteria stirred up by media reports at the time.
More importantly, for a couple of years now, the media has been focusing on volatility as if it’s something important that the investing public needs to be concerned about, which is akin to inventing a whole new way to look at managing money.
Posted on: January 15, 2018
The penny finally dropped a couple of months ago during a client conversation about the risk of investing in the equity markets. The client was reluctant to commit money to the investment markets and gave me several reasons - "the markets were too high and ready to crash", "there were safer alternatives", "I never fully recovered my money from the 2008 Credit Crisis" - to justify his point of view.
Posted on: February 13, 2017
Wouldn't life be better if it was easier to get ahead? For many, there's just too much month left over at the end of the pay cheque. After all, you've got a mortgage or rent and utilities to pay, food and clothes to buy, and a vehicle to operate.
Posted on: November 7, 2016
On November 8, 2016, Americans will elect the 45th President of the United States. Many Canadians have been vehement and passionate observers of every twist and turn of the campaign. Yet, once you strip away the nasty name calling and accusations of one kind or another by both candidates, you are left with their policy pronouncements.
The one area that impacts Canada and the rest of the world directly is that of economic policy, which has very little that separates the two candidates except for some subtle and nuanced differences.
Posted on: October 10, 2016
There are very passionate views on both sides of the debate as to whether it is better for individual investors to use active investment managers versus using an index approach, with its main selling feature being lower fees.
Posted on: September 12, 2016
The media in general has a tendency to take an idea or story and run with it until the original context or point is lost in a wave of misinformation, taking a form of its own. At that point, the idea can become very dangerous to you as an individual working to build your own financial wealth and assets.
While we have covered the role of your behavior in contributing to your investment success in past articles, let us explore this idea that selling all of your investments as a tactic, in more depth.
Posted on: September 12, 2016
Imagine one of the following scenarios. Suppose you have suddenly come into a significant sum of money. For the interest of this example, we will imagine that it is one million dollars. This might have come to you by way of a lottery win, an estate inherited after the death of a family member, or some other event that may have been either expected or unexpected. You now find yourself in an entirely unique financial situation from anything you have experienced before, whereas previously you were living paycheck to paycheck, you could now actually consider early retirement.
Posted on: August 8, 2016
A constant dilemma for Advisors working with clients to help them realize their goals and dreams is striking a balance between the tyranny of immediate current events with the need to stay focused on your longer term goals.
The recent Brexit vote in the U.K. is a case in point. The media created a firestorm of hysteria, speculation and anxiety with its constant and overwhelming coverage of the impending vote and its aftermath.
Posted on: July 11, 2016
After speaking with many clients and potential clients over the years, a pattern emerges in the direction that the interview takes. There is often a sense of give and take with the client wanting to get certain questions answered in their mind, giving out small bits of information, but withholding the rest as if to keep control of the situation. Perhaps there is a sense that full and complete disclosure can be used against them since information is often thought of as power.