Economic Outlook

15-Investing Rules To Win The Long-Game

It is times, such as now, where logic states that we must participate in the current opportunity. However, emotions of “greed” and “fear” cause individual’s to take on too much exposure, or worry they have too much and a crash could come at any moment. These emotionally driven decisions tend to lead to worse outcomes over time.

As Howard Marks’ stated above, it is in times like these that individuals must remain unemotional and adhere to a strict investment discipline. It is from Marks’ view on risk management that I thought sharing the rules that drive our own investment discipline. 

I am often tagged as “bearish” due to my analysis of economic and fundamental data for “what it is” rather than “what I hope it to be.” In reality, I am neither bullish or bearish. I follow a very simple set of rules which are the core of our portfolio management philosophy. We focus on capital preservation and long-term “risk-adjusted” returns…CLICK for complete article

E-Commerce Explodes As Boomers Go Digital

Things like test-driving, touching the fruit before you buy it, or even trying on clothes prior to purchase won’t be so important from here on out, thanks to a lockdown that has seen millions of Americans forced to work and stay at home to halt the advance of COVID-19 (rather unsuccessfully, it would seem).  During this time of lockdown, however, everyone–not just the younger generations–have used their spare time to hone online shopping skills.

That’s led to a wild uptick in ecommerce.

Amazon is still a leader in it, Walmart and Target are also catching up in online sales. But even the auto industry has now embraced digital platforms and ecommerce. It turns out, all it took to get people to buy cars sight unseen was a guarantee that they can return it (contactless) within a certain number of days, no strings attached.

New data from eMarketer estimates that more than 204 million people ages 14 and older will make an online purchase in 2020.

But the real disruptor for traditional retail is this bit of data: Two-thirds of those online shoppers will be 45 and older–an age group that hasn’t until now really taken to the idea that much.

The updated forecast, which factors in the pandemic’s effects, anticipates a 5.8% increase in the number of digital buyers 45 and older, up from 3.2%. This equates to nearly 5 million new users…CLICK for complete article

Shocking Stat of the Week – June 27th

It’s a question Canada refuses to ask but other countries have. How many people with an existing medical condition have died because of the lockdown. 

Mike’s Editorial – June 27th

Can the capital gains exemption on your home really be in jeopardy? Will the massive increase in government debt thanks to the lockdown be the excuse to cap it or cut it?

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Seth Levine: Emergencies May Cause Strange Market Behavior

Emergencies may cause strange market behavior. 2020 is certainly not shaping up to be the year I had hoped for. Like many, I was optimistic at the start. I underwent some major surgery late last year and 2020 was going to be “my year.” Boy did those plans derail quickly. In the blink of an eye, the coronavirus (COVID) escalated from a mystery-meat sideshow to a full-blown economic crisis. Suddenly, we investors faced the realities of investing during an emergency. However, you’d hardly know it by the look of today’s markets. Was COVID just a blip or could they be reflective of investing during an emergency? CLICK for complete article

‘Investing in People’ Literally. Not Everyone Approves

Human IPO lets individuals sell their time on the open market. Its cofounders believe its valuation model is agnostic—but it may still reflect an unequal world.

 

Pollock, a startup investor, “went public” on Human IPO earlier this month. The platform lets people sell up to 500 hours of their time on the open market, at one hour per “share,” at a price of their choosing. Investors make a bet that those hours will be worth more in the future, whether to them or someone else. Share owners can then redeem that time—with a one-on-one meeting, for example—at their discretion. A person’s value goes up and down depending on market conditions.

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