Hello and welcome to another edition of “This Too Shall Pass”. I’m very pleased to be able to share with you a podcast with Jim Allworth, RBC Dominion Securities’ Chief Investment Strategist. Many of you will remember him from the luncheon we held at the Royal York back in November. I had very positive feedback from those of you who attended (over 20 clients) and feel strongly that this interview (from March 18th) will be very helpful in framing what we’re currently going through.
Click here and the link will take you to the 22 minute podcast (sound only, no graphics).
For those of you who aren’t familiar with Jim, here are a few of his credentials. He has been in the investment business for more than 50 years, as both a research analyst and portfolio strategist. Through more than four decades at RBC Dominion Securities Jim has developed investment policy for the firm and translated that into solutions for individual clients. He is the RBC Dominion Securities investment strategist and Co-Chair of the Global Portfolio Advisory Committee.
See below for what resonated with me the most, during the podcast:
- Pandemics in the past (and there have been some very serious ones)… don’t have a lingering effect on the economy… they’re difficult when you’re in them… but if you looked at them 6 to 12 months down the road, you don’t see some lingering shadow from this that goes on affecting the economy for an extended period.
- So if you think that what you’re buying when you buy a great business (which is what we try to do in portfolios) is not today’s earnings, but a long-term stream of earnings indefinitely into the future. It’s wrong to think that the long-term stream of earnings is going to be dramatically effected by a year that hits the wall… on a valuation basis this is already pretty overdone.
- Very often I see comments out there that say the market is saying something… and then there’s the presumption the market is right… my view of that is the market is almost never right. Was it right the day before Lehman Brothers collapsed? Was it right in 2009? Was it right a couple of months ago?
- Nobody makes a dollar by panicking.
- … getting back into the market. We’re a lot closer to that than we were a week or two or three ago
Amanda and I continue to be in the office every day and we’re always happy to take your calls. Thanks so much to those of you who have checked in to ask how we’re doing. We are very fortunate to have the BEST and kindest clients!
Carry on and I hope you’re finding lots of fun things to do online and good shows on Netflix!
Libby & Amanda
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