Fall/Winter 2021 Newsletter
Christine Fortin - Nov 29, 2021
I’m always astounded at how in speaking with industry professionals the layers of complexity they add onto conversations around investing. The concepts are really quite simple. So, why? Is it to make themselves appear smarter than others? Is it that they want to provide the illusion that they have discovered the secret sauce? Click here for my video on the reasons our industry complicates things.
These types of comments pop up all the time in the financial news. There is typically a spin to it that makes it complete garbage. However, this time, with this title it would be true!
What is this magical investment? Well, the S&P500 of course. And the cash return in question is, of course, its dividend.
Last week, I saw a “news” item on my usual financial “news” website, to the effect that a high-profile market strategist was “warning” of the “risk” of a 20% decline in stock prices. Should we be concerned?
I'd seen essentially the same headline, attributed to a different expert/guru/seer, the previous week. And another the week before that. I confidently expect to see it again next week. Somebody somewhere is always opining about a market decline of some significance. And financial journalism, which feeds avidly on anything that's even potentially negative, will be sure to pick up on it every time.
Institutional investors have long had an unofficial rule they call the Odd Lot Theory. Its premise is that when small and odd-lot investors (those who purchase investment shares in odd lots rather than in multiples of 100) buy, that is a signal for larger investors (those who buy in multiples of 100 or more) to sell. Does it hold true?
Does it hold true?
Cyber criminals are taking advantage of Covid-19, our remote work and our personal devices. If you suspect a hack, take these actions immediately.
We are proud to say that our team has been designated as one of the two Wealth Management leads on the Athlete Advisory Team in BC, which focuses on providing all-encompassing solutions for professional athletes locally and across the continent. Do you know the rate at which NFL players go broke? What about NBA players? The unfathomable income is not all it is cracked up to be.
When we begin to dissect these causes, we can readily see that this is not just a professional athlete problem, but a societal problem that begins with a lack of financial literacy taught at a young age. The prevalence of this issue is just magnified when looking at professional athletes because their income level and notoriety is that much greater.
Its been a really busy year for our team on the accomplishment front.