As I write this Thanksgiving has just passed. The crop is in the bin, the garden still a work in progress, the cows have gone on to their next home and the place has gone quiet. Our Thanksgiving celebration took place at the farm. Turkey, gravy, family, and friends together. Guests arrived with their contribution to the meal and to the gathering. News from all, engagements, babies, new jobs, politics, graduations, retirements, holidays, sadness and joy are part of the sharing of our lives. Thankfully, we are all in this together and what we all have in common, are the opportunities to gather and celebrate the important events in our lives. Thankfully we live in a place that planning for the future is possible and supported by healthcare, access to education, security and the rule of law. While we don’t all agree about how the tax dollars should be spent, we do all share the same needs. Supporting our families, setting aside savings, sharing with others less fortunate through charitable gifts and personal effort make us who we are. There is a lot of disruption in the world at the moment. Technology and geopolitical turmoil leave all of us uncertain about what the future holds. Good nonpartisan leadership is what we need. Our next political leader needs to put their own interests aside and focus on what will support families in their challenging role. Again, we are all in this together and my belief is that doing what is right for the family is doing what is right for the country. We need the ability to develop our industries, compete with our neighbors and do it in a way that reflect our values as Canadians. We need to instill in our children the responsibility to remain aware of foreign and domestic issues. Confidence in our society and our way of life is essential. To live within our means, to take responsibility for our acts, to be respectful of our laws, to be proud of our customs and to engage with others around the world to make the planet a better place. Markets go up and down. Politicians and governments come and go. To have been born or to have the opportunity to live in this country is a great benefit and for that we are most fortunate.
The financial service industry is always in a state of change. Artificial Intelligence, Passive investing, Growing Regulatory burdens, Privacy and Security and the Outsourcing of important services to foreign call centers are all areas that we follow closely. The content of the continuing education we receive is expanding continually and we are always looking for ways to improve our service.
From our family to yours we are grateful for your loyal support and look forward to doing our best for you.
Don
GEOPOLITICAL DISRUPTIONS AND INVESTMENT STRATEGIES
Political turmoil, the prospect of slowing economic growth, an inverted yield curve, monetary policy pivots, trade wars and disrupting tweets have all been a common occurrence of 2019.
Despite the volatile environments stock indexes were nearing record high levels, until October and the fourth quarter began. With fresh signs of economic slowdown and Trump facing a push for impeachment, investors are showing concern. This ongoing disruptive news has increased investors recessionary fears and fueled a flight to safety. Global Market Strategist at Invesco, Kristina Hooper however, explains “that investors should try to identify the geopolitical disruption that really matters for the economy and markets, and ignore the event’s that are just background noise”. Kristina and I share the same view ‘’the majority of the news is just noise’’.
Geopolitical disruption isn’t going anywhere and is likely to become more unpredictable. Its not unreasonable for investors to expect ongoing volatility. We can take this as a reminder of the importance in being properly diversified. In addition, we can take advantage of the opportunity created by the downward volatility to buy reputable companies at a discount.
The swing of emotions an investor can experience during market volatility are normal. But while these intense reactions are common, they ignore two important points. The long- term trend of the stock market is positive and the above-average returns from stocks have compensated for their volatility. It is time in the market versus timing the market that creates long term success.
So, if we can’t time the market, then what can we do? We can implement a sound financial plan and review it regularly. We work to understand your situation and recommend a properly diversified portfolio tailored to your risk tolerance and objectives. We hire professional investment management companies with proven track records and specialized teams with discrete investment perspectives. They operate under a disciplined philosophy and process with strong risk oversight. These companies focus on investment management that eliminates the distractions that compromise results.
With professional advice comes improved savings behaviour. The opportunity to identify tax-efficient investment vehicles, support to build and maintain long-term investment strategies, counsel against poor financial decision-making, as well as objective opinions that help mitigate emotional investing habits.
We are here to use our knowledge and experience to assist our clients in achieving and maintaining financial well-being through the implementation of personalized and realistic strategies. I look forward to seeing you in the coming months for review!
Allison Stone
We hope you had a wonderful Thanksgiving and wish you all the best this fall season! Don, Allison, and Penney.