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Happy Thanksgiving Weekend, !
Thanksgiving has always been one of my favourite holidays. So many of the long weekends in the summer has me and my family running off to try and capture the great weather and the way-too-short Canadian summers. Christmas is always a wonderful time to get family together and has become more magical since we’ve had our little guy. Thanksgiving, on the other hand, has always been a little more laid back for us. It has been a time that we can spend with family, but without the “stresses” of trying to do too much. It’s a time, for us, of relaxing and really just enjoying our time with our loved ones.
This week, I was reminded of how many of us spent our Thanksgiving weekend a couple of years ago. Speaking with a colleague reminded me of the feeling many of us had back in 2008. At the start of the Financial Crisis, the S&P 500 crashed almost 30% from September 1 to the Thanksgiving Weekend. As I’m writing this, the same time period this year has the S&P down by 6.23%. There are indications that the global equity market is not in good shape, and we might face difficult times in the coming months. Many experienced a similar feeling last year when they watched their retirement savings, education funds for our kids, and downpayment for our dream home disappear.
Harbourfront clients had a different experience.
When we take a look back to 2022 (and you can see in the chart below), Harbourfront’s defensive approach actually created positive results. As Canadians, we typically don’t discuss finances with our family and friends, especially our own. But when our investments are challenged and our nest egg is at risk, we feel stress, and it often shows. In both 2008 and 2022, I had conversations with people about how the “markets suck” and how it “affected everyone”… well not everyone. However, I didn’t want to be the one to point out that better decisions months ago could have reduced their stress (I definitely didn’t want to be “that” guy!). It’s not enjoyable to tell someone who is already stressed and unsure about retirement, education, or buying a home that their stress could have been avoided.
We can all look at the opportunities that are available to the ridiculously wealthy and the institutions that have unlimited money and wish that we had that opportunity as well. Harbourfront has copied what Yale, the Teacher’s Pension Plan, and the Ultra Wealthy are doing and have done a great job managing the downside risk of their clients, all while taking advantage of the market’s upswings. Over 80% of our clients made the transition with us and we’re so grateful for that. I know most of us are super excited to share with our friends and family about the coolest new thing that we’ve bought or learnt, but we are often reluctant to share money-related opportunities. We often think that our friend that looks like they have it all together must have all the solutions. When you have a look at some of the best funds, EFTs, the S&P, and the bond market last year - not many had the answers.
If the projections are accurate and this recent downtrend continues, it could be a stressful Christmas for many people we care about. We don’t often ask for introductions as they usually come steadily (thank you for that!), but we want to let you know that we are here to talk to your friends and family and ensure that they aren’t the ones at the dinner table looking at their investment portfolio down by 30% all while we’re planning your next vacation and having boring conversations about how your investments are fine despite the market disaster.
Enjoy your time with your family and friends this weekend. Take some time to unwind after an eventful summer and transition into fall. However, please take a minute to share this with your loved ones (except for your brother-in-law whom you dread being cornered by at the family BBQ). We want to ensure that you and the people you care about are taken care of and don’t have to worry about their financial future.
Have a great weekend,
Trevor
PS. Check out the new Wealth Building video (here) or on our Facebook page!
