{"id":509,"date":"2016-04-20T22:03:07","date_gmt":"2016-04-21T05:03:07","guid":{"rendered":"https:\/\/chaltenadvisors.com\/blog\/?p=509"},"modified":"2016-04-20T22:03:07","modified_gmt":"2016-04-21T05:03:07","slug":"chalten-investment-review-q1-2016","status":"publish","type":"post","link":"https:\/\/chaltenadvisors.ca\/blog\/chalten-investment-review-q1-2016\/","title":{"rendered":"Chalten Investment Review Q1 2016"},"content":{"rendered":"

Welcome to the Chalten Investment Review for Q1 2016.\u00a0 If you\u2019re just checking your portfolio now for the first time since the beginning of the year, I\u2019m sorry; you\u2019ve missed all the fun!\u00a0 A few days ago the headline across many financial media outlets read, \u201cBiggest quarterly comeback for the Dow since 1933\u201d. No doubt investors that flowed out of the market during the mid-February panic will either be kicking themselves or be pulled back into the market by exactly such fear\/greed invoking headlines!\u00a0 It does beg the question, though, are investors better off ignoring the market volatility completely, or staring it in the face and proving their discipline?\u00a0 We think the answer lies somewhere in between.\u00a0 You can\u2019t completely ignore what\u2019s going on in the market any easier than you can completely ignore other mainstream news.\u00a0 People talk about it so to completely avoid it you\u2019d have to totally isolate yourself!\u00a0 We believe it\u2019s better to arm yourself so that the headlines reinforce the confidence you have in your plan rather than reinforce the message from those spewing fear and greed.\u00a0 As an enlightened and aware observer, you\u2019ll be better able to ride through periods of market volatility.\u00a0 How did you feel when the market kept falling through February? How did you feel when the Canadian dollar plunged to its lowest level vs the USD since 2003?\u00a0 It\u2019s times like this when the pundits are at their loudest and when you can\u2019t help but feel like you must do something in response \u2013 it\u2019s our natural reaction to want to act!\u00a0 But if you stay the course and stick with the plan, it will serve you better over the long run.\u00a0 Selling out during the discomfort in February would have left you missing the recovery.\u00a0 Market movements happen quickly and the evidence shows it just doesn\u2019t pay to try to time them.\u00a0 You just have to stay in.\u00a0 Legendary investor Benjamin Graham said, \u201cThe investor\u2019s chief problem and even his worst enemy is likely to be himself.\u201d\u00a0 Self-awareness is critical because you are the enemy!\u00a0\u00a0 So step outside of yourself for a moment and ask how the headlines make you feel \u2013 then take a step back and say, \u201cThat\u2019s interesting, I wonder why I feel that way?\u201d Q1 provided a valuable opportunity to \u201cpractice\u201d self-awareness because we rode the rollercoaster all the way down and all the way back up again.\u00a0 How do you feel right now?<\/em><\/p>\n

Q4 Market Review <\/span><\/em><\/p>\n

To borrow an unattributed and overused phrase from English football commentators, \u201cit was truly a game of two halves.\u201d The Chalten Q4 2015 Investment Review was penned in the midst of a global market downturn and continuation of many of the trends we saw at the end of 2015.\u00a0 Indeed, market volatility rose up in the early part of 2016 as asset prices collapsed, some blaming fears over global growth.\u00a0 But oil and equity markets bottomed out and turned around quickly in February as those fears seemed to subside.\u00a0 The US Federal Reserve, however, still seemed to be concerned enough to signal a slowing of its previously indicated pace of interest rate increases. This seemed to add fuel to the market comeback.\u00a0 Most risky assets seemed to come racing back after the February market lows, none more so than emerging markets and commodity based equities.\u00a0 Canada\u2019s stock market benefitted on a relative basis doubly from its commodity weighted stock market exposure and the rebound of the Canadian dollar.\u00a0 <\/em><\/p>\n