Back in early February 2020, I started writing a weekly “Feel Good Friday” email, in an attempt to combat the fear that was raging around us. My goal was to look to optimistic stories to help remind us that the dark and gloomy headlines served virtually no constructive purpose and there was indeed so much else out there that was encouraging, as well as uplifting.

As I was contemplating a myriad of financial topics I could write about for this blog post, I found myself looking back and re-reading those Friday pieces. After finishing, it occurred to me there was one major theme that continued to resurface each week, and that was client reactions to those emails. More than anything I’ve ever written, I received overwhelmingly positive responses during that entire time.

Now here we are, almost 3 years later, having experienced another very volatile year, not just in the stock market, but also with Ukraine, Iran, inflation, higher interest rates and so on. And yet, despite these emotionally influential factors, clients have continued to demonstrate their willingness to trust the plan we have in place for their portfolio, and not deviate in any meaningful way from that plan. I truly feel like a proud parent, as corny as that may sound.

Most understand the benefits of time in the market, versus trying to time the market. I’ve communicated this multiple times over many years - the shorter-term, day-to-day prices of the holdings in a portfolio should never be the focus. What matters is the income being generated from these same companies and is it growing over time? Also, if you’re inclined to obsessively go on-line every day to see the “totals”, while at the same time comparing it to some “all-time-high” number, I encourage you to abandon that behaviour. What really matters is the quality and transparency of the assets you own, and their ability to produce solid returns over many years to come.

If we take a look back to January 2022, the majority of my clients had returns in the high-teens to mid-20’s. It is exactly this kind of large-gain anomaly that can help cushion the more difficult years, such as the one we’re going through currently. In short – it all evens out, to a more normalized, longer-term positive performance (if you’re my client). If you’re not currently my client – consider reaching out for a complimentary second-opinion. I’d be more than happy to speak with you.

Okay, my pep-talk is done (for now)…. How about some feel-good news?

• Girl Scouts (US) receive $84+ million donation from MacKenzie Scott to aid recovery from lack of income (no cookie sales) during pandemic
• German scientists discover a substance found in pomegranates significantly boosts the immune system to fight certain types of colon cancer
• US Gov’t approves activation of Elon Musk’s Starlink to provide internet access to Iranian people amid protests & social media bans
• The growth in carbon-capture projects this year is dramatic, showing global determination to cut emissions
• India’s poverty rate is half of what it was 15 years ago – 415 million less people below the poverty line – according to the UN
• The FDA has approved a new drug to help treat ALS, funded by the Ice Bucket Challenge (2014, raised $115M)

If you have some good news story you’d like to share – please reach out!

Libby

 

 

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