{"id":1098,"date":"2022-06-01T09:55:00","date_gmt":"2022-06-01T15:55:00","guid":{"rendered":"https:\/\/livingskyfinancial.ca\/?p=1098"},"modified":"2022-06-01T10:14:06","modified_gmt":"2022-06-01T16:14:06","slug":"its-not-different-this-time","status":"publish","type":"post","link":"https:\/\/livingskyfinancial.ca\/its-not-different-this-time\/","title":{"rendered":"It\u2019s Not Different This Time!"},"content":{"rendered":"

A statement that usually turns out to be true and also the title of an article I will reference in\u00a0 today\u2019s letter. Recent downward moves in the market cause people to question their\u00a0 investments and comfort level in the very short term. I have never understood how short term\u00a0 negative moves trigger extreme emotions while positive moves in the investment markets\u00a0 never have the same effect. Obviously I say that a bit wryly as we all know fear is a much more\u00a0 powerful emotion than greed.\u00a0\u00a0<\/span><\/p>\n

At times like this it is extremely important to have a longer term perspective and remember\u00a0 most abrupt changes in the market are temporary whether extremely negative or extremely\u00a0 positive, the latter being less noticed when the moves are in the right direction. Our long term\u00a0 goals and strategies have not changed and portfolio construction is designed to be balanced in\u00a0 expectation of times like these. We have been discussing for a better part of the last year how it is possible to see additional volatility, a market correction or simply a short term decline in\u00a0 the future after seeing strong upward movements in the markets since April of 2020. This\u00a0 appears to be happening to the stock market and bond investments at the same time although\u00a0 we certainly didn\u2019t predict the timing or any of the factors that have led to this other than our\u00a0 expectation of interest rates moving back towards previous levels prior to Covid. That is\u00a0 impossible.\u00a0\u00a0<\/span><\/p>\n

As we have seen a shift away from only Covid-19 news in the early part of this year, the\u00a0 buzzword has been about inflation and then the added geopolitical risks with war in Ukraine.\u00a0 More recently the buzzword has become recession which invokes an even greater degree of\u00a0 negative emotions in investors. Recessions do not generally start at the snap of the finger. It\u00a0 usually takes time before recessions are realized and sometimes they never do occur when\u00a0 predicted. We still don\u2019t know the outcome of rising interest rates, improving supply chains or\u00a0 how the war in Ukraine will impact the economy in the short to medium term. Predictions of\u00a0 an immediate and harsh recession so far are just that \u2013 predictions. Time will determine\u00a0 whether we are moving in the right direction in regards to inflation but as always it will require\u00a0 patience.\u00a0\u00a0<\/span><\/p>\n

The following link is to a well written article this past week by Michael Antonelli, managing\u00a0 director and market strategist with Baird in the United States. It is a short read and worth the\u00a0 time as it focuses on dealing with the emotional impacts of negative market movements such\u00a0 as this.\u00a0<\/span><\/p>\n

https:\/\/advisoranalyst.com\/2022\/05\/10\/its-not-different-this-time.html\/<\/span> Respectfully,\u00a0<\/span><\/p>\n

Scott L. Bjornson, CIM\u00ae, CFP\u00ae, FMA, FCSI\u00ae, CPCA\u00a0<\/span><\/p>\n

Senior Investment Advisor\u00a0<\/span><\/p>\n

A few more timely words from Warren Buffett\u2026\u00a0<\/span><\/p>\n

\u201c<\/span>Much success can be attributed to inactivity. Most investors cannot resist the temptation to\u00a0 constantly buy and sell<\/span><\/i>.\u201d \/ \u201cLook at market fluctuations as your friend rather than your enemy;\u00a0 profit from folly rather than participate in it.\u201d \/ \u201c<\/span>Stop trying to predict the direction of the stock\u00a0 market, the economy or elections.<\/span><\/i>\u201d\u00a0\u00a0<\/span><\/p>\n

This information has been prepared by Scott Bjornson who is a Senior Investment Advisor for iA Private Wealth Inc.\u00a0 and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter\u00a0 comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions\u00a0 expressed are based on an analysis and interpretation dating from the date of publication and are subject to\u00a0 change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Senior\u00a0 Investment Advisor can open accounts only in the provinces in which they are registered. iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry\u00a0 Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private\u00a0 Wealth Inc. operates.\u00a0<\/span>\r\n\r\nInsurance products are provided through iA Private Wealth Insurance, which is a trade name of PPI Management\u00a0 Inc. Only products and services offered through iA Private Wealth Inc. are covered by the Canadian Investor\u00a0 Protection Fund.<\/span><\/pre>\n","protected":false},"excerpt":{"rendered":"
A statement that usually turns out to be true and also the title of an article I will reference in\u00a0 today\u2019s letter. Recent downward moves in the market cause people to question their\u00a0 investments and comfort level in the very short term. I have never understood how short term\u00a0 negative moves trigger extreme emotions while […]<\/p>\n","protected":false},"author":3,"featured_media":1043,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/livingskyfinancial.ca\/wp-json\/wp\/v2\/posts\/1098"}],"collection":[{"href":"https:\/\/livingskyfinancial.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/livingskyfinancial.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/livingskyfinancial.ca\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/livingskyfinancial.ca\/wp-json\/wp\/v2\/comments?post=1098"}],"version-history":[{"count":2,"href":"https:\/\/livingskyfinancial.ca\/wp-json\/wp\/v2\/posts\/1098\/revisions"}],"predecessor-version":[{"id":1100,"href":"https:\/\/livingskyfinancial.ca\/wp-json\/wp\/v2\/posts\/1098\/revisions\/1100"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/livingskyfinancial.ca\/wp-json\/wp\/v2\/media\/1043"}],"wp:attachment":[{"href":"https:\/\/livingskyfinancial.ca\/wp-json\/wp\/v2\/media?parent=1098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/livingskyfinancial.ca\/wp-json\/wp\/v2\/categories?post=1098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/livingskyfinancial.ca\/wp-json\/wp\/v2\/tags?post=1098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}