Commentary

Stack and Pivot

Nope, not a fancy workout routine or new Netflix feature, just two of the most valuable actions that we at MPWealth have been working so hard at to bring to your investment experience.

If I were to boil it all down after my 25 years with our clients, what they really want is for us to make them money and keep them safe. Well, also never lose money.  We understand that completely. We hear you loud and clear. We want to help you stack up your gains. We want you to NOT participate in market meltdowns. We want you to Pivot out of the way of those downturns. Save your gains, save your progress, get off and stay off the waterslide of wealth destruction that downturns steal from you.  Pivot back into an upturning market with those preserved gains and do it all again. Grow your wealth and stack the fresh success onto previous gains. Seriously? Seriously!

Stack your gains.

When investment portfolios have had a period of growth you need to have an active and timely way to keep those gains.   Markets cycle, from strength and growth to weakness and downturn, at times that is a slow and almost not noticeable decay, at times it can be a brutally fast and disturbing flush down.  Think about how Salmon make it upstream, against daunting powerful currents and obstacles, including frequent and very hungry bears. Salmon work so incredibly hard to make upstream progress on the way to their goal. They never get there in just one push though. They take rests. They conserve their energy and protect their hard-fought gains by taking rests at the most daunting and dangerous spots. We build fish ladders for them in particularly difficult and critical spots, we should replicate that concept for your financial gains, isn’t that a worthwhile pursuit?

Don’t own equity in meltdowns.

Heresy we know! This industry has drilled it at us forever to stay invested, that equity recovers and you are better off tweaking exposures if you must, but that you should hang tight through any and every part of the markets swings. Really? Even with retirement at hand? The fear of loss is magnitudes stronger than the greed or excitement of gain. Humans are emotionally driven; the very worst choices and decisions are made in the grip of a fearful event. Fight or flight. We use our Pivot indicator as a non-emotional call to action, both on the sell side, and the buy side. As we go forward, we will explain and educate and share our reasoning with our clients.

In the coming weeks and months, we are looking to build out our online presence. We will enhance and update our communication ability with audio blogs that you can listen to at your convenience. The Global response and adaptation to the Covid crisis has pushed us all to be more comfortable online. We will step up and make that a better experience for you.

Craig had commented in his blog last week that markets had run hard and fast and needed a pause. Yesterday they not only paused, they passed out and fell out of bed! That got our phones ringing, the fear component in action. Today the price action has sprung right back, our screens are green. We anticipate more stimulus to come, possibly  much more, a globally wide government push to restart growth and get people back to work. Interest rates will remain low for at least the next few years, that comes directly from the head of the US Federal Reserve a few days ago. Those inputs are good for equities. Volatility here though is heightened, and market swings are continuing. We are mindful of that, remember we are here every single day managing that for you, don’t let your fear push you around here. We’ve got this.

Covid shutdowns are being relaxed but the threat remains. I encourage everyone to continue being mindful, but not fearful.

 

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The opinions contained herein are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Wellington-Altus Private Wealth. Assumptions, opinions and information constitute the author’s judgement as of the date this material and subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. All third party products and services referred to or advertised in this presentation are sold by the company or organization named. While these products or services may serve as valuable aids to the independent investor, WAPW does not specifically endorse any of these products or services. The third party products and services referred to, or advertised in this presentation, are available as a convenience to its customers only, and WAPW is not liable for any claims, losses or damages however arising out of any purchase or use of third party products or services. All insurance products and services are offered by life licensed advisors of Wellington-Altus. Wellington-Altus Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. All trademarks are the property of their respective owners.