2018

It Ain’t Different This Time

Good day,

In life we become wiser by learning from our experiences but for some reason this doesn’t always apply to investing. We tend to quickly forget past experiences and make the same mistakes again and again and/or have the same fears and anxiety we’ve previously experienced during multiple periods of market contraction.

One of the best things advisors could do for their clients is to use recent examples to point out this phenomenon, in an effort to guide them to a successful and less emotional investment pathway.

From January 1st to October 3rd of this year (191 trading days), the S&P500 saw a 9.42% increase, but over the short period of the next 18 trading days (October 4th – 29th), that same index dropped 9.72% and the index’s entire year’s gains were eliminated resulting in a -1.21% return for the S&P500 from January 1st – October 29th. Undoubtedly this led certain investors to question their decision to invest in the markets. They may have wondered if their advisor lost his/her mojo in a month, paid attention to their accounts etc.

Over just the next 8 trading days (October 30th – November 8th), the S&P500 bounced back 6.27% and the index’s year-to-date return is once again positive again (4.98%). As such, it’s not impossible that the next 5% or so needed to bring the index back to its October 3rd high, couldn’t occur in a matter of days/weeks.

After reading this, some readers might feel a sense of relief and remove market decline worries from their list of problems, switching focus to other things going on in their lives. The better thing investors could do today is to spend a little time reflecting on how they felt and/or reacted during October and try to hang on to that memory longer than just a handful of days. If we add the impact this October’s market action had on us to the inventory of our experiences, perhaps we can better assess market action the next time around.

Charts below – Have a good weekend!

Danny

 

Jan 1 – Oct 3: 191 trading days

Oct 4 – Oct 29: 18 trading days

Jan 1 – Oct 29:

Oct 30 – Nov 8: 8 trading days

YTD:

Danny Popescu

“I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone and may not reflect the views of Harbourfront Wealth Management. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by Harbourfront Wealth Management Inc.”

Disclaimer – This information transmitted is intended to provide general guidance on matters of interest for the personal use of the reader who accepts full responsibility for its use and is not to be considered a definitive analysis of the law and factual situation of any particular individual or entity. As such, it should not be used as a substitute for consultation with a professional accounting, tax, legal or other professional advisor. Laws and regulations are continually changing, and their application and impact can vary widely based on the specific facts involved and will vary based on the particular situation of an individual or entity. Prior to making any decision or taking any action, you should consult with a professional advisor. The information is provided with the understanding that Harbourfront Wealth Management is not herein engaged in rendering legal, accounting, tax or other professional advice. While we have made every attempt to ensure the information contained in this document is reliable, Harbourfront Wealth Management is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is,” with no guarantee of completeness, accuracy, timeliness or as to the outcome to be obtained from the use of this information, and is without warranty of any kind, express or implied. The opinions expressed herein do not necessarily reflect those of Harbourfront Wealth Management Inc. The particulars contained herein were obtained from sources we believe to be reliable but are not guaranteed by us and may be incomplete. The opinions expressed are not to be construed as a solicitation or offer to buy or sell any securities mentioned herein. Harbourfront or any of its connected or related parties may act as financial advisor or fiscal agent for certain companies mentioned herein and may receive remuneration for its services. The comments and information pertaining to any investment products (The Portfolios) sponsored by Willoughby Asset Management are not to be construed as a public offering of securities in any jurisdiction of Canada. The offering of units of The Portfolios is made pursuant to the Offering Memorandum or Simplified Prospectus and only to investors in Canadian jurisdictions. Important information about The Portfolios is contained in the Offering Memorandum or Simplified Prospectus available through Willoughby Asset Management. Commissions, trailing commissions, management fees, performance fees and expenses all may be associated with investments in The Portfolios. Investments in The Portfolios are not guaranteed, their values change frequently, and past performance may not be repeated. Historical annual compounded total returns including changes in unit value and reinvestment of all distributions do not take into account sales, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Unit values and investment returns will fluctuate and there is no assurance that The Portfolios can maintain a specific net asset value. Harbourfront Wealth Management Inc. (“Harbourfront”) has relationships with related and /or connected issuers, which may include the securities or funds discussed in this commentary and are disclosed in our Statement of Policies Regarding Related and Connected Issuers. This policy is included in your new client package, on our website, or can be obtained from your investment advisor on request.

Comments (1)

  1. Welcome to the world of adult Dating loveawake.ru