Having a Plan
Along with our commitment to being “Equally Invested”, we also proactively reach out to each household at least once every 90 days to offer an update. While these regular updates focus on the status, reflection, and outlook of our portfolios, it also allows clients to update us on what is going on in your financial lives, so we can help plan.
2008 had an impact on everybody’s financial lives and felt like it would never end! The S&P500 took roughly four years to recover. Some people had to rethink their retirement plans. Some panicked and sold all their investments. Some stayed the course and eventually saw their portfolios recover. A few, who are glorified by movies and news articles, profited from the crash. In all cases, people’s financial pictures changed.
Fast forward to 2020. Like 2008, there was a severe drop in equity markets. However, unlike 2008, markets rebounded and went on to new highs in the same year. At the same time, most people have also seen their real estate value skyrocket. Again, a change has likely occurred.
Is there another market correction coming? Is there going to be rampant inflation? What is the economic and market outlook over the next few years? These are all questions I am hearing regularly from my conversations with clients. While we have an opinion on all these important questions and they help guide our investment strategies, we feel it is equally important for investors to reflect and update us on what personal financial changes have taken place, so we can tie our investment strategy to your financial goals.
Your investment strategy should be tied to your spending needs and goals. For example, if you are saving for a down payment for a house, it can be tempting to try and increase the value of your savings in the short term and invest it while you see the stock market on an upswing, but unexpected fluctuations like the one in 2020 can have negative short-term consequences. However, retirement savings should likely be invested in assets you expect to grow over the long term like equities and short-term fluctuations should be ignored and not attempted to predict. In either scenario, it is important to have a plan and invest your hard earned savings properly to reach that goal.
“This means that” if your financial situation has changed, we strongly encourage you to reach out to Nigel or Lucas to update your plan together. We are looking forward to speaking with you!
National Instrument 31-103 requires registered firms to disclose information that a reasonable investor would expect to know, including any material conflicts with the firm or its representatives. Doug Johnson and/or Pathfinder Asset Management Limited are an insider of companies periodically mentioned in this report. Please visit www.paml.ca for full disclosures.
*All returns are time weighted and net of investment management fees. Returns from the Pathfinder Partners’ Fund and Partners’ Real Return Plus Fund are presented based on the masters series of each fund. The Pathfinder Core: Equity Portfolio and The Pathfinder Core: High Income Portfolio are live accounts. These are actual accounts owned by the Pathfinder Chairman (Equity) and client (High Income) which contain no legacy positions, cash flows or other Pathfinder investment mandates or products. Monthly inception dates for each fund and portfolio are as follows: Pathfinder Core: Equity Portfolio (January 2011), Pathfinder Core: High Income Portfolio (October 2012) Partners’ Fund (April 2011), Partners’ Real Return Plus Fund (April, 2013), and Partners’ Core Plus Fund (November 2014).
Pathfinder Asset Management Limited (PAML) and its affiliates may collectively beneficially own in excess of 10% of one or more classes of the issued and outstanding equity securities mentioned in this newsletter. This publication is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any of the securities mentioned in it. The author has taken all usual and reasonable precautions to determine that the information contained in this publication has been obtained from sources believed to be reliable and that the procedures used to summarize and analyze such information are based on approved practices and principles in the investment industry. However, the market forces underlying investment value are subject to sudden and dramatic changes and data availability varies from one moment to the next. Consequently, neither the author nor PAML can make any warranty as to the accuracy or completeness of information, analysis or views contained in this publication or their usefulness or suitability in any particular circumstance. You should not undertake any investment or portfolio assessment or other transaction on the basis of this publication, but should first consult your portfolio manager, who can assess all relevant particulars of any proposed investment or transaction. PAML and the author accept no liability of any kind whatsoever or any damages or losses incurred by you as a result of reliance upon or use of this publication.