At one time in the not-so-distant past, our society was tuned into saving. We wouldn’t think of buying something until we saved enough cash to pay for it, whether for a car or other consumer goods. Only for the rare, big-ticket item, such as a home, would we go into debt.
A recent article in the Washington Post offered a different perspective to the view that kids these days are getting too much screen time. In fact, there’s another demographic struggling to put down their devices: baby boomers. As one man put it: “My 75-year-old dad’s phone may as well be an implant; he lives with it like a teenager!”1 Of course, this has implications for our investing ways. With easy access at our fingertips, we may all be guilty of checking investment accounts too frequently.
One of the weaknesses of human nature is our tendency to focus on what is most recent in our memories. Our minds are naturally influenced by things that have just happened, and this can impact the way we make decisions.
If an unexpected event were to happen, would you, or others, be able to find important documents to handle your finances?
Keeping your nerve when you see minus signs on your portfolio statement is not easy. Throw in a global pandemic, the rising cost of living, interest rate hikes, and a news cycle of war and political division, and it’s little wonder many investors want to exit the market and hunker down until the good times return.
It has been difficult to find much market commentary that suggests positive developments in the financial and economic markets over recent times. The reasons are many: high and persistent inflation, more aggressive tightening policies by central banks and the prospect of recession. This has created significant uncertainty over the path forward.
Between the pandemic, inflation, and geopolitical tensions, market uncertainty reigns right now. You might have heard some disturbing words, like shares “plunging”, prices “soaring”, and investment “volatility”. Many people, therefore, are asking themselves: should I take money out of the market and get back in when skies are clearer?
Being invested can be one of the best ways to grow wealth over the longer term. Yet, after an extended period of gains, some investors may feel hesitant to put money to work in equity markets. While volatility was muted for most of 2021, let’s not forget that it is a normal part of equity markets. It is the price paid for the upside potential.
We may all benefit from some investing perspective as we experience increased volatility and rapid decreases across most equity markets. Who better to draw on for that wisdom than one of the most successful investors of our time, Warren Buffett. Many of Buffett’s messages are timeless. In fact, a more recent academic study analyzed years of Buffett’s shareholder meetings, which have attracted tens of thousands of investors from around the world, and confirmed that the Oracle of Omaha’s key messages has recurring themes.
With the return of autumn, many families have turned their attention to school. If (grand)children are off to pursue post-secondary education, the rising cost of higher education may be top of mind. As investors, we have the opportunity to assist (grand)children with education at all levels. For starters, we can provide advice about money, teaching the fundamentals of saving, investing, and taxes. We may also choose to put aside financial resources to support the cost.
Quintessence Wealth (Q Wealth) is a partnership that is registered as a portfolio manager, exempt market dealer and investment fund manager. The portfolio manager registration allows Q Wealth to provide investment advice to its clients. The exempt market dealer registration allows Q Wealth to engage in trading activity. These services are provided by Q Wealth through registered advising representatives and dealing representatives, respectively.
Q Wealth is a partnership that is owned by its partners, including Precision Wealth Management. As a client of Q Wealth, you may receive services from both Q Wealth and Precision Wealth Management. Note that individuals from Precision Wealth Management will only provide investment advice and trading advice if they are registered as advising representatives and dealing representatives of Q Wealth, and in providing such services, they will be doing so on behalf of Q Wealth only. Precision Wealth Management may however provide wealth management services such as financial planning, estate and retirement planning, insurance, group benefits and others.
Q Wealth Partners is a registered trade name of Quintessence Wealth, a registered Portfolio Manager in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, and Saskatchewan, an Investment Fund Manager in Newfoundland and Labrador, Ontario, and Quebec, and an Exempt Market Dealer in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Quebec, and Saskatchewan. The Ontario Securities Commission (OSC) is the principal regulator for Quintessence Wealth. Please visit www.qwealth.com for more information.
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