Scary Markets Out There!
As I write today, the S&P/TSX Composite Index sits around 13,000, down approximately 15% from it’s 52-week high. Not exactly devastating but no fun if you are fully invested in public equities.
No Worry or Panic Here
In light of the recent massive stock market selloff (correction, crash, pause, take your pick), now would be a great time to take a step back, and review the main themes discussed in this blog over the past year or so:
- July 2, 2014- The post “Exempt Markets Help Avoid 4 Costly Mistakes” highlighted some of the main mistakes that are made by many investors and traditional advisors. The first two portfolios, being the Classic 60/40 and 100% Equities for Everyone, are currently being decimated by too much stock market exposure right now. The solutions provided, such as using guaranteed investments to control risk, and using a combination of public and non-public securities, is an approach that is weathering the storm quite nicely today.
- July 23, 2014- “Investing for Canadian Doctors: A Case Study” described the way a particular MD was being treated by her traditional advisor. The review uncovered that she was paying too much in fees, owned incredibly expensive and inappropriate seg funds, as well as back-end load mutual funds (DSC) that were quite restrictive. The prescription provided to this medical professional, of using guaranteed investments to protect the portfolio first, a much lower allocation to public stocks and bonds, and private alternative investments to properly diversify, is serving to preserve and protect during the current stock market crash.
- July 30, 2014- “Why Billionare Michael Lee-Chin Loves the Exempt Market” showed how one of Canada’s richest men protected himself through the last financial crisis. That same investment process, of looking for alternatives to complement public stocks and bonds, is protecting from today’s market selloff.
- September 3. 2014- “Public and Private Securities are NOT the Same”. This article focused on the main differences between public and private investments, the key mistakes investors make when assessing public vs private, and provided some common sense solutions that would have been used to protect a portfolio during a stock market crash.
- October 15, 2014- The post “The REAL State of the Economy” let Investing Beyond readers know what is really happening with the economy globally. Readers were informed about what is really going on with interest rates, the economy, housing, and the stock market. They were also provided with some good news, in the form of simple solutions, that one can use to properly plan and manage an investment portfolio.
- November 26, 2014- “Why Your Investment Portfolio Doesn’t Stand a Chance” discussed Modern Portfolio Theory, which is the method that the majority of financial advisors use today, and why it is flawed. Todays MPT-centric portfolios are being decimated by falling stock markets. The solutions were provided to weather the type of storms we are facing today.
- December 10, 2014- In the article “Investing Beyond’s Favourite Websites” I described some great sites to visit, their value and limitations, and I am still a fan of ZeroHedge.com! By paying attention to ZH, the recent stock market carnage would not be a surprise at all, and hopefully you have been prepared for it.
- March 18, 2015- “The Stock Market is Super-Expensive” talked about how an investor should be very cautious with the equity markets, given current valuations, and provided some practical ways to protect your portfolio during scary times like we are currently experiencing.
Investing Beyond Readers Have Been Prepared
The purpose of this blog is to inform investors of the realities in today’s investment world, in plain English, without all of the hype and sales talk that is so prevalent in the financial system today. Looking back at the articles written over the past year, a stock market crash should come as no surprise to IB readers, in fact you may have been welcoming this to take advantage of opportunities.
Is the Carnage Over?
No one can say for certain if the markets will continue to slide or bounce back quickly. It is altogether possible, if things continue to get extremely messy, that central banks will try and prop things up artificially again. This may result in the market continuing to get more and more overvalued as it rises, and could result in a bigger bursting of the equities bubble. As an investor you may want to ask yourself “Am I prepared to keep playing this game of chicken with the markets?”
More Simple Solutions
Investing Beyond readers have also become used to not only problems presented but solutions provided. Here are a couple of things you can do today, to protect your portfolio, lessen stock market worry, and enjoy a happy and prosperous retirement:
- Join the FREE Retirement and Investment Planning Webinar. This webinar is blows open the top myths perpetuated by the financial system today. Also discussed are some practical solutions you can use to protect yourself from a stock market crash, invest like the world’s greatest investors, and enjoy a good life while making excellent financial decisions. To find out if you qualify and register click here.
- Download the free Guide to Real Asset Investing located to your right