Update from Danielson Group Wealth Management – Mar. 18, 2020

As part of our ongoing efforts to support you and your family, we want to ensure we are touching base regularly and updating you on key issues. Given how noisy the news is, it is becoming increasingly difficult to process all the new information out there and how it impacts you. We’re also seeing this in the stock markets globally as it too works to price in all the new information, making for some turbulent conditions. 

 

What can you do to weather this storm?

1. Stay the course.

Now is the time to stick to the plan put in place during the planning exercises you and your family have done with us in the past. Sticking to this financial plan is like sailing around the world. The voyage won’t always go to plan, and there will be rough seas like we’re experiencing now; but the odds of reaching your destination increase greatly if you are prepared, flexible, and patient.

 

2. Focus on the health and safety of your loved ones.

We always say focus on the things you can control and in a time of great uncertainty, the decisions you and your families make over the coming weeks is one of the things you can influence. We are not experts in this area, but the Government of Canada’s official resources can be found by clicking this link.

 

3. Reach out to us.

We are here to support in you in whatever way we can and are only a call or email away. We too, are long-term investors and have families of our own, so we are feeling the same feelings you may be experiencing. 

 

What are we doing?

1. Monitoring and Rebalancing your Portfolio if needed.

A core component of our job is monitoring and rebalancing your portfolio when stock prices fall outside of your target asset mix. While it may seem counterintuitive, this might involve buying more stocks as the prices fall.

 

2. Referencing your plan and keeping a long-term view.

Part of the initial planning exercise involves stress testing your financial plan to ensure it can weather periods of uncertainty. However painful and unexpected this period may feel, our job is to ensure that we both follow the strategies previously put in place.

 

3. Moving to virtual and or phone meetings.

As part of our commitment to ensure your safety as well as our own, we will be moving to virtual or phone meetings wherever possible. We understand the importance of communication at a time like this and want to make sure you can access our team.  

 

How are we thinking about the current market conditions?

We continue to reference historical events to illustrate how resilient we as humans are as well as the stock markets in which we invest in. It is important during periods of extreme volatility to remind oneself of what a stock represents. It represents ownership in a company, which distills down to buying ownership in the expected future earnings of that business. When prices fall, it means that these expected future earnings have decreased or now carry more risk. For an investor to lose all their capital in a globally diversified portfolio, it would require a situation in which nobody expects any business to earn future profits. We view this an extremely improbable situation. It’s why headlines like “This time is different…” don’t cause us to feel fearful for the future.

 

Do we have a business continuity plan?

Both Assante’s head office staff in Toronto and the staff here at Assante Vancouver Centre are putting into place business continuity plans, with the goal of minimizing the impact on your client experience. All functions of the business can continue on a remote/out-of-office basis which makes us confident in our ability to continue supporting your family, albeit under modified conditions.

Please reach out to us for any questions or concerns you may have.

Best regards,

Danielson Group Wealth Management

Assante Capital Management Ltd.