A blog about keeping you up-to-date with the latest Financial Planning and Wealth Management news.
Inflation Coupled with Geopolitical Uncertainty There has never been a time in history in which investors were not distracted or influenced by geopolitical uncertainty, macro environment risks, or pandemic; but how about the combination of all three? With economies around the world already feeling the effects of soaring inflation, the timing of Russia’s invasion of Ukraine could not have occurred at a worse time. Globally, supply chains are sluggishly normalizing from bottlenecks induced by the pandemic and with rising input costs this will only push rising prices into overdrive. Essentially, the Russia and Ukraine conflict is pouring fuel onto an already well-kindled fire and with a full tank it is easy for things to get out of hand. While energy prices may rise, there are ways it can be offset to limit the potential economic disruptions. The U.S appears close to a nuclear deal with Iran which would bring much needed...
The benefits of maintaining a long-term perspective. History is unique, but not different. Although, it can be difficult to watch your portfolio dip with the market, it is important to keep in mind that downturns can be painful but have always been a temporary part of the process. In the last forty years, we have seen thirteen corrections and eight bear markets in global equities. That is about one every other year. Over the last forty years, global equities have increased by a magnitude of seventeen times. Behavioral finance can be quite comical in the sense that people want more of something when the price increases and less of it when the price declines. We think it should be the exact opposite. Legendary investor Warren Buffett says, "he likes his stocks the way he likes his socks... on sale." During periods of market volatility, it is important that...