By John Ardill
“Investing should be like a garden. Each year, you plant a few things, you harvest a few things. But you should never uproot the whole garden at once. Something should always be in bloom.”
— Shelby Davis
Some investors hunt for the latest trend that has the potential to score big.
You hear about the winners, but not the losers.
Bitcoin, for example, has made some investors wealthy and others poor. And now we have Dogecoin’s 12,000% rally driving the hunt for the next crypto winner. These investors are betting that cheaper alternatives to Bitcoin and Dogecoin will skyrocket in price and make them money. Is this gambling or is this prudent investing? We all know the answer, so if you want to gamble with some of your money – emphasis on some, as in 5% or less of your net investable assets – go ahead.
Personally, I want my portfolio to work in all economic circumstances. I want it to have lower risk, especially with these nagging questions that have no easy answers:
Will there be:
1. Out-of-control inflation?
2. Increasing interest rates?
3. A bubble that will burst in different sectors?
I know your concerns are real, and that consuming the news can really spook us. I don’t think it’s controversial to say that watching too much news can be negative for your mental health. Personally I have really cut down on my consumption.
Be careful when you’re in a negative state of mind: your decisions can become irrational. A good advisor helps manage your portfolio – but, above all, helps manage your emotions. Nothing and no one can be more effective at keeping you from getting carried away and taking risks you’ll regret later.
That said, even advisors can get carried away, especially at times like these, when markets are awash in liquidity and speculation seems unstoppable. Now is an ideal time to check in with – and check up on – your advisors. Before it’s too late, make sure they can manage not just your emotions, but their own. I have no doubt that the best advisors are good at keeping their clients from bailing miserably at market bottoms and buying euphorically at the tops. But we have to remember that advisors are human too.
HANDCUFFS
Most advisors are handcuffed and have limited options. What do I mean by this? There are over 40 sectors to invest in and most advisors can only direct you to invest in some of them. Therefore they can deliver less diversification, especially into investments that are non-correlated with the stock market.
The advantage we have at Ardill Group is our ecosystem: we have an almost infinite range of investment solutions. This allows us to assist in structuring your portfolio for future economic circumstances. As you may know, we love private capital investments, that add diversification, to be blended into your overall portfolio. In the 2008-2009 crash, I was better off than most because I was diversified into the private capital market (PCM). Downturns are inevitable, so get your seat belt on and let us review your plan.
As summer approaches, I wish you a great one. I am looking forward to getting in some physical activity, doing some gardening and watching things grow.
John Ardill
Founder and Mentor
Ardill Group
Direct: 1 416 400 5882
Office: 1 905 907 7000
john@ardillgroup.com
