As humanity emerges from the most recent crisis, we will read about how things have forever changed. People will write about the impact on how we work, commute, interact, and shop, as well as how the economy and markets will be affected. One thing that will remain constant, however, is human behaviour. Morgan Housel shares his…
Going the Distance: How to Conquer the Challenges Imposed by Liquidity Requirements
BLOG SERIES: UNDERSTANDING RISK
In the third installment of our deep dive on volatility, Amin Haji, Manager of Investment Research and Analytics, discusses how portfolio constraints can affect your ability to take risk, focusing on time horizon and liquidity constraints. Using succinct examples, Amin explores whether or not liquidity needs have an effect on how impactful volatility is to your long-term wealth, and how simply having a longer time horizon may not in fact lower your ability to take risk, as conventional investing wisdom would have you believe.
O Canada! Why We Diversify
The COVID-19 global pandemic is a historic event that has galvanized intergenerational cohorts in the fight against a common enemy. I will not attempt to wax-poetic about the implications this will have on our way of life for when we inevitability get through to the other side of this epidemic, as there are much more qualified experts that can offer better educated opinions on the matter then I can. What I will attempt to do is explore a way to reframe the implications of this health crisis for investors that are dealing with both emotional and financial stress as a result of the pandemic.
Diversification Performance Through the Panic
If you have been following financial markets, even casually since February, you would know that we are in the midst of one of the fastest and sharpest equity market drawdowns in history. Although it may feel like the financial world is on the brink of collapse, a recent article by Ben Carlson of A Wealth…