Posted on: March 11, 2019
With the December market correction in both the US, Canada and elsewhere slowly receding into the past, it is a good time to review what exactly happened and how clients have reacted to the recent events.
To put December into context, it was the most severe correction late in the year since the early 1930's. The market valuations improved dramatically as a result of the correction with Price\Earnings (P\E) multiplies falling by 5 points, which is the most in about 25 years and has happened only about 5 times in history.
Posted on: February 11, 2019
If your way of assessing the state of the world is only through stories gleaned from the regular media, then you are likely missing out on all the marvelous and wondrous advancements of human society over the previous years and decades.
With news reports during the final months of 2018 focusing on market volatility and US budget problems, it has become very easy for investors to focus their attention mostly on short term and transitory issues.
Posted on: November 12, 2018
It is that time of year again when news broadcasters turn our thoughts to the how the world and the investment markets may run into trouble. There are special reports stating that markets are at record levels, interest rates are rising, Trump, Trump and more Trump, trade deals, China, the end of globalization, inflation is rising, inflation is a non-factor...well you get the drift.
Posted on: November 12, 2018
When asked if they had any regrets, Baby Boomers wished they had started investing and saving at a much earlier age. Hindsight being 20/20, the Boomer generation can pass on some much needed advice and guidance to their kids and grandkids. It is normal for younger people to focus on earning money to accommodate their lifestyle but few have the foresight to pay themselves first. It is easy for younger generations to imagine their whole life ahead of them and have the attitude that of course I'll be financially set when I'm ready to retire'.
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: May 7, 2018
There are many different types of global economic risks that financial advisors take into account when preparing a financial action plan for their clients. This is where advice and judgment come into play when working with you as a client. One area that is gaining increasing prominence is the role of the United States and its dollar in international affairs.
Posted on: April 9, 2018
Advisors offer clients many value-added services, in addition to investment planning, insurance and risk management planning and general financial and Estate Planning advice. This often leads to a discussion by clients of what is hot in the market and what is actively being discussed in the media and whether the client should participate in the “action” or not. There are many times when these hot investment themes turn into financial duds over the longer periods of time. But sometimes clients get involved in something where they defy the odds and score a large investment return.
Posted on: August 7, 2017
The current compensation model for financial industry participants*, who promote the use of investment funds and other managed investment products for retail clients, has been mostly unchanged for over 30 years.
Posted on: November 7, 2016
By the time you read this, the 45th President of the United States will be elected. 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.
Posted on: February 8, 2016
"Everyone has a plan until they get punched in the face."
With RRSP season upon us, it might be useful to see how the wealthy invest their funds for some indication as to how they differ from average Canadians. As Baron Rothschild famously stated, “The time to buy is when there's blood in the streets…”, and so do the wealthy, even in difficult times. In other words, they are contrarian investors who do the opposite of what everyone else does, which is a lesson that all investors can profit from.