Monthly Archives: September 2016

Stock Market Variability and Volatility in 2016

One of my favourite weekly read is the updates from 361 Capital’s Blaine Rollins. The other day, when reading the most recent edition, there was a graph that jumped out at me. I’ll share it with you in a second.

But first, let me set it up for you.

Think about your stock portfolio. And in particular, think about how much it swings around on any given day. Does that get a reaction from you? Should it?

Well, as I was saying, I saw an interesting graph (source)…

screen-shot-2016-09-13-at-9-43-16-pm

Do you see what that means? Essentially, in the US, over 70% of daily price movement in equity markets is due to macro variance. Talk about correlations!

Basically, that means it doesn’t matter what stock you pick. 7 times out of 10, your fate is going to be dictated by something outside the company.

And while we’re at it, here’s another interesting chart from Eddy Elfenbein at Crossing Wall Street that shows volatile days are not spread out. When it rains it pours.

screen-shot-2016-09-13-at-9-49-03-pm So what does it all mean? Is it actionable? Well, not really.

First of all, I think it’s Just something to be aware of. When times get crazy, it’s not necessarily because you’ve done anything wrong. It’s just the way it goes. Emotions take over, everything moves in a convoy and it all happens at once.

The other thing that’s not mentioned is magnitude: If during the 30% of the time your stocks are moving on their own accord they are steamrolling higher by huge margins, well, then maybe this isn’t so horrible after all.

As with everything in investing, there are nuances, quirks and

Finance Your Canadian Lifestyle

A friend of mine sent me a great infographic, originally created by the folks at RateHub. They’re a wonderful resources for anyone interested in finance (especially when it comes to credit card deals and mortgage rates).

Anyways, without too much more comment here is the infographic. It shares some great tips for financing your life in Canada using registered accounts. Check it out!

Best savings accounts to meet your savings goals
Finance Your Life infographic by RateHub.ca.

 

harvest season

Harvest Season

It’s that time of year: Back to school. Back to work. And time time to tend to the crop.

There’s something about the pending end of summer that always gets me. It probably has something to do with 20 years in the educational-industrial complex.

Nonetheless, after months of fun, frolicking in the sun, my attention starts to turn. I’m focused on productivity, output and grinding my way through the incoming winter months. It’s time to get busy. Seriously.

So here’s to a good September. To pushing yourself. To committing to a course of action and seeing it through – even when things get tough. You can change your direction to your goals, but not your decision to achieve them.

Now let’s make this fall count: With your work, your investments, and your family. Define your priorities, and focus on them ruthlessly. Cut the noise. Build your peloton. And live your life.

I hope you had fun while the sun was shining. But now, the days are getting shorter. Are you ready for it?

Do you feel a change of atmosphere when September rolls around? What are you going to be harvesting in this upcoming semester?