Wise to resolve, and patient to perform. – Homer
A number of indicators are pointing to solid economic performance, jointly supported by government spending programs, central bank easing, and what I would call a newfound spirit of public cooperation. Particularly, US new home sales, which has been an important leading indicator in past recoveries, made one of its biggest moves higher ever in August. Durable goods orders, manufacturing and service purchasing, railway and freight shipping data, and even mall traffic are showing up, up and away. We must not discount the possibility that a more robust economic expansion is underway than was generally anticipated even a month ago. While some parts of the economy will undoubtedly remain a lasting concern, positioning ourselves at the forefront of the expansion is paramount to success.
Our systematic models are picking up on this positivity and continue to align our portfolios with higher growth sectors of the market. Existing trends in tech, knowledge-based businesses and precious metals companies remain strong, while I’ve noticed a new positive trend emerging in transportation and shipping. Bond prices are at all-time highs. One curious hold-out is that dividend stocks, which tend to be more conservative, mature businesses, continue to lag the market recovery.
Retirement and estate planning is not just about money, and it’s not even just about “real life” anymore. Increasingly as Boomers live online, we must plan and consider the digital footprints we leave behind. I encourage all clients and readers to incorporate this digital aspect into their estate plans, specifying how Executors are to manage various online accounts and media. A simple first step is to coordinate the record keeping of all accounts and passwords in one place. I encourage all to look into a number of free and paid password management solutions to bridge the gap.
Capture the power of a growth mindset: https://fs.blog/2015/03/carol-dweck-mindset/
Pondering long term impacts of remote work: https://www.theatlantic.com/ideas/archive/2020/08/just-small-shift-remote-work-could-change-everything/614980/
Warren Buffett is best known as a value investor, but is he secretly a trend follower? https://thenakedhedgie.com/2016/07/13/value-investing-vs-trend-following-which-is-better/
An interesting take on reality vs perception: https://moretothat.com/reality-is-never-strange-we-are/
A comprehensive overview of Modern Monetary Theory, or why the government can print as much money as it likes: https://newrepublic.com/article/158221/government-can-afford-anythi-wants
Ben W. Kizemchuk
Portfolio Manager & Investment Advisor
Wellington-Altus Private Wealth