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COVID Crisis Update

Dr. James Thorne, a regular on MoneyTalks was kind enough to send us this report on the seriousness of the COVID 19 crisis and its emotional affects on the market. ~Ed. Over the past week, global stock markets experienced the most severe 5-day market correction in history.  As news of the global spread of Covid-19 intensified, fears of a global pandemic increased.  The three major US market indices, the Dow Jones Industrial Average, The NASDAQ composite, and the S&P 500 fell more than 10% from the record peaks achieved a few weeks ago.  In 5 short days, the markets went from the euphoria of record highs to extreme fear.  In our 2020 market outlook presentation we examine the most recent work by Dr. Robert F. Shiller, “Narrative Economics: How Stories go Viral and Drive Major Economic Events”. Click here for full article

Inside the ‘Growth Machine’ that Made Vancouver World Class Unaffordable

Our friends over at Hawkeye Wealth sent us this fascinating article on the events that lead Vancouver’s real estate market to become the “growth machine” that it is.  ~Ed.  

For years in British Columbia, the elected powers looked at rising home prices and saw that it was good. It’s “a challenge that virtually every other jurisdiction would like to have,” said former BC Liberal finance minister Mike de Jong in 2016. Such is the gospel of growth.

In 1976, sociologist Harvey Molotch wrote of the alliance between government and the development industry to intensify land use. Molotch called it the “growth machine,” where…click here for full article.

How The Continued Rise Of Nationalism Will Hit Real Estate Capital Flows And Values

Because most people employed in real estate today have only ever worked in a globalised world, it can be hard to imagine how it could be any other way. But the prevailing mood around the world is increasingly opposed to globalisation, with political and economic nationalism and protectionism on the rise. From Brexit, to President Donald Trump’s trade tariffs and America-first policies, to an increasingly…Click here for full article.

The Real Investment Guide For The Next Decade

As we head into the next decade, this complete set of articles delves into the fallacies of always owning stocks for the long run (aka “buy and hold” and passive strategies). Given that market’s cycle over time, it is important to understand how markets, and investing actually work, the impact on your wealth, and what you can do about it.

This series of articles will cover the following key points:

  • “Buy and Hold,” and other passive strategies are fine, just not all of the time
  • Markets go through long periods where investors are losing money or simply getting back to even
  • The sequence of returns is far more important than the average of returns
  • “Time horizons” are vastly under-appreciated.
  • Portfolio duration, investor duration, and risk tolerance should be aligned.
  • The “value of compounding” only works when large losses are not incurred.
  • There are periods when risk-free Treasury bonds offer expected returns on par, or better than equities with significantly less risk.
  • Investor psychology plays an enormous role in investors’ returns
  • Solving the puzzle: Solutions to achieving long-term returns and the achievement of financial goals.
  • Spot what’s missing: A compendium of investing wisdom from the world’s greatest investors.

CLICK for articles

The Real Investment Guide For The Next Decade

As we head into the next decade, this complete set of articles delves into the fallacies of always owning stocks for the long run (aka “buy and hold” and passive strategies). Given that market’s cycle over time, it is important to understand how markets, and investing actually work, the impact on your wealth, and what you can do about it. CLICK for complete article

Best Sector ETFs For January: Energy, Health Care In Focus

With the S&P 500 coming off its performance in two decades last year, expectations are in place that returns are likely to be more subdued this year. If historical trends repeat, that subdued tenor could be seen this month as the S&P 500 averaged a January decline of 0.30% over the previous 20 years.

So although January is part of the best six-month period in which to own stocks, the month typically isn’t strong in its own right. The tepid nature of January equity market action is reflected at the sector as just five of the original nine sector SPDR exchange traded funds average gains in the first month of the year.

A Standout

As for solid sector performers in January, the Health Care Select Sector (SPDR) stands out as the best performer of the original nine sector SPDR ETFs….CLICK for complete article