A very Merry Christmas to you and yours

Dec 22, 2017 | Nick Foglietta


Wishing you all the best of the holiday season.

Tis the Season…

A final post before Christmas to all of my friends and clients reading our blog, to say thank you for your continued support and confidence in what are challenging financial markets for investors who care about traditional valuations.

Our promise back to you is a continued effort to work hard on your behalf to do everything we can to help you achieve your financial goals.

One of the keys to achieving your goals in trying to NOT get caught in the next BEAR market for financial assets when it finally begins. After investing through the past two BEAR markets I am confident we will identify the DNA markers of the change in trend and manage to avoid at least half of the downturn in percentage terms. It is fascinating to see how, in the late stages of a BULL market, investors lose sight of all the basic concepts of investing. They get caught up in the excitement of the rush higher in asset prices.

I am reminded of the short but powerful poem by Robert Frost:

We dance round in a ring and suppose
But the Secret sits in the middle and knows

It is not hard for me to look at my own life and see an application of this poem in both my investing and personal life. Too many times I have been the one “dancing round in a ring and supposing.”

Here is a “secret” that has helped me stay centered and balanced in both work and life:

Each day I start my routine remembering that we are blessed to live where we live in the time that we live. As Canadians we have much to be thankful for!

That starts my day in a thankful mindset and helps put a positive bias on whatever else is coming. As the day progresses, I remember I have three types of “capital” to manage:

  1. Financial capital – It is my job to manage money therefore, being a wise steward of the financial resources entrusted to me is job one.
  2. Mental capital – taking care of staying focused on the tasks at hand helps keep my day low stress and efficient. Not wasting time thinking about things I don’t control also saves on mental capital.
  3. Physical capital – simply taking care of yourself and doing some exercise or physical activity. If I make it a priority it tends to get completed.

All three require care and attention; if one of the three is neglected, things in my life fall out of balance and I can tell I am not right. When I am not feeling right with myself, it is hard for me to be a good friend and help to those around me. In my mind, I am at my best when I can be a good friend to all those around me!

It is my wish that your holiday season will be happy, restful, and spent with those you love.

If your Christmas is not perfect and life has thrown you a curve ball or two, I hope you think about the different types of capital discussed above. Everybody possesses a measure of all three. Rebalancing the three types of capital may help you to move on to better days too!

Thank you again for your friendship and support. May 2018 be a happy, healthy, and prosperous year for you and yours!


Nick Foglietta