{"id":1017,"date":"2023-05-05T18:30:05","date_gmt":"2023-05-05T18:30:05","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/?p=1017"},"modified":"2025-02-19T20:20:27","modified_gmt":"2025-02-19T20:20:27","slug":"change-is-the-only-constant-spring-2023","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/2023\/05\/05\/change-is-the-only-constant-spring-2023\/","title":{"rendered":"Change is the Only Constant: SPRING 2023"},"content":{"rendered":"\t\t
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\n\n\u201cA new technology bids to transform the human cognitive process\u2026redefine human knowledge, accelerate changes in the fabric of our reality and reorganize society.\u201d These are the words of Henry Kissinger on the age of artificial intelligence (AI) and the potential impact of ChatGPT \u2014 the AI chatbox that has taken the world by storm. Indeed, the evolution of AI is a reminder that change can come thick and fast.\n\n<\/div>\n<\/div>\n
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\n\nLikewise, in investing, we are never immune to change. In recent times, we\u2019ve seen the effects of rapid changes in inflation and interest rates on the financial markets. Respected investor Howard Marks suggests we are in the midst of a \u201csea change,\u201d a departure from a low-interest rate environment that provided a tailwind for decades. In his view, higher interest rates and inflation are likely to remain the dominant considerations influencing investing for the years ahead.\n\n<\/div>\n<\/div>\n
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\n\nThese haven\u2019t been easy times for investors. As the central banks continue their fight against inflation, much of the recent market movement was driven by uncertainty over the path forward for interest rates. To start the year, stronger economic news was perceived as bad news by the markets, creating worries that the central banks would continue raising rates. Now, new jitters have emerged as a result of the recent collapse of Silicon Valley Bank in the U.S. \u2014 a harsh reminder that the aggressive rate hikes by the central banks were likely to have consequences.\n\n\"\"\n
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\n\nFor now, we can expect continued volatility. While it may be hard to see beyond today, we will emerge on the other side of this difficult period. Every financial cycle differs from those that came before and each comes with its own challenges. Throughout time, the companies that have succeeded in meeting the challenge of change have been rewarded with higher stock prices. And, over time, in spite of the many changes, economies have continued to grow, demonstrating our collective ability to adapt and advance. This time is no different.\n\n<\/div>\n<\/div>\n
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\n\nMoreover, the evolution of AI should remind us of the human pursuit to innovate, which has been a key driver of growth throughout time. Business cycles have operated under long waves of innovation, with new waves emerging as the markets are disrupted by new innovation. Earlier revolutions, such as those sparked by the development of railroads, electricity and the automobile ignited upwaves of economic growth that lasted for many decades. Consider the impact of the global petroleum industry or the assembly line introduced by Henry Ford \u2014 the latter changed global manufacturing processes forever.\n\n<\/div>\n<\/div>\n
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\n\nDespite the many changes, some things remain the same. The principles of longer-term investing success haven\u2019t changed: having a carefully constructed investment plan to guide us, with consideration of risk, value, quality, diversification, tax and personal objectives, and the patience to see through more challenging periods.\n\n<\/div>\n<\/div>\n
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\n\nAt the same time, investors should not overlook the value of thoughtful analysis and evaluation. These skills should be trusted to guide us through the longer term as we endure these periods of inevitable change. Sound portfolio management involves continuously assessing the changing landscape and the potential opportunities to come, all while balancing the risks involved. This is one of the roles we fulfill as advisors as we navigate the changing times.\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n

The information contained herein has been provided for information purposes only. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information has been provided by J. Hirasawa & Associates and is drawn from sources believed to be reliable.\nThe information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual\u2019s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) and the authors do not guarantee the accuracy or completeness of the information contained herein, nor does WAPW, nor the authors, assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. WAPW is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.\n\u00a9\ufe0f 2023, Wellington-Altus Private Wealth Inc. ALL RIGHTS RESERVED. NO USE OR REPRODUCTION WITHOUT PERMISSION<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

\u201cA new technology bids to transform the human cognitive process\u2026redefine human knowledge, accelerate changes in the fabric of our reality and reorganize society.\u201d These are the words of Henry Kissinger on the age of artificial intelligence (AI) and the potential impact of ChatGPT \u2014 the AI chatbox that has taken the world by storm. Indeed, […]<\/p>\n","protected":false},"author":68,"featured_media":3017,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[40],"tags":[81,165,145],"class_list":["post-1017","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-investment-insights","tag-saving-strategy","tag-wealth-planning"],"_links":{"self":[{"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/posts\/1017","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/users\/68"}],"replies":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/comments?post=1017"}],"version-history":[{"count":3,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/posts\/1017\/revisions"}],"predecessor-version":[{"id":1702,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/posts\/1017\/revisions\/1702"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/media\/3017"}],"wp:attachment":[{"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/media?parent=1017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/categories?post=1017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/wp-json\/wp\/v2\/tags?post=1017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}