From the Editor: The Bright Side

Q2 | July 2022

Laptop, notebook, Tablet and coffee on work desk

Topic: Human Interest

Brad Weber  CPA, CA, CFP, CIM

July 4, 2022

Image used with permission: iStock/PRImageFactory


Print & Share

Print

From the Editor: The Bright Side

Q2 | July 2022

I recently read that the most popular song played at funerals in the UK was Monty Python's "Always Look on the Bright Side of Life." It’s a song described as relentlessly optimistic, whose lyrics implore you to look at the positives in your life no matter what is happening.

A lot has been happening this year, but most of the headlines seem far from encouraging. Stock markets around the globe have been on a steady decline as the year has progressed. Inflation continues to be high, and supply chain problems are stubbornly persistent. There is still war in Ukraine, and let’s not forget this is all happening under the umbrella of an ongoing global pandemic. Moreover, current events seem to be described with some version of “the worst in decades.” At times like this, being told to grin at your troubles doesn’t feel like sound advice.

But remaining hopeful that better times are coming is an essential part of being a long-term investor. People tend to assume that what’s happened most recently will continue to happen. And when recent events have been negative, we develop a pessimistic outlook for the future. But when you look at events on a much longer timeline, you can see that things perhaps aren’t so grim.

Last year at our annual client event, we had the good fortune to have Matt Ridley as a guest speaker, and like Monty Python, he’s a product of the UK. He’s the author of several books, including his most famous, “The Rational Optimist.” One of Matt’s underlying messages is that not only has the world been getting better, but also the trend will continue in the future. And he outlines a compelling case for how innovation has been a cornerstone for those improvements. We can see this unfolding even now. As disheartening as current events seem, let’s not forget that the course of the pandemic and its effects could have been much worse if a vaccine hadn’t been created, and in record time no less. This is a great example of how innovation has a positive impact on the problems of the world, but also how great progress can get overrun by gloomy headlines.

While Ridley does argue that things are getting better rather than worse, his optimism for the future doesn’t mean that everything in the world is fine, or that there aren’t some areas or countries where things are getting worse. His view of optimism is on a global basis, rather than at a local level. But as individuals, how do we incorporate this viewpoint when assessing our own situations? One perspective is to focus on the things that we can control. This can be as simple as what we spend our money on or how much we set aside as savings. At Nexus, we can’t predict the future and are faced with making investment decisions in an uncertain world. What we can control is our ability to stick with our investment discipline of investing in high-quality stocks that we believe are well-positioned for the long term. While this sometimes can feel like a waiting game, we are confident in this proven approach. And if you didn’t have a chance to attend the Matt Ridley presentation last year, I recommend you view the recording on our website.

John Stevenson’s most recent blog, “The Long and Winding Road” delves deeper into the current environment. Also, in this issue, Devin Crago describes some of the challenges in ESG investing, and Denys Calvin provides more information on upcoming changes known as the “Client Focused Reforms”.

We are happy to welcome two more members to Nexus. Julie Crothers joins us as Vice President of Client Service and Business Development. And Ashleigh Oucharek joins our administrative team as a Portfolio Administrator. We are excited to welcome them to the team, and you can read more about both in our Inside Nexus section.


Worth 1,000 Words

Image used with permission: Ali Solomon, The Cartoon Bank/The New Yorker Collection

More Like This...

See another CRM2 blog post that may be of interest to you.

CRM2: The Nexus Approach to our CRM2 Reports

Topic:
CRM2
Excerpt:
With changing securities regulations coming into effect, investment firms are now required to provide individual investors with specific additional in

More Like This...

See another Foundations & Endowments blog post that may be of interest to you.

Charitable Giving Made Easier

Topic:
Foundations & Endowments
Excerpt:
Giving to charities and supporting our community are important to us at Nexus. We donate a portion of our management fees back to the charities and

More Like This...

See another Human Interest blog post that may be of interest to you.

The Case for Openness – An Open and Shut Case?

Topic:
Human Interest
Excerpt:
From time immemorial, mankind has been open. Open to new ideas, open to trade, and open to migration – the three critical ingredients for progress.

More Like This...

See another Inside Nexus blog post that may be of interest to you.

Embracing the Golden Years: A Journey of Reflection and Wisdom

Topic:
Human Interest, Inside Nexus
Excerpt:
It was an otherwise slow mid-afternoon trading session on the “old” floor of the Toronto Stock Exchange at 234 Bay St. The dog days of summer had

More Like This...

See another Investments blog post that may be of interest to you.

Say “No” to Absolute Safety

Topic:
Investments
Excerpt:
My colleague Harsh Narsinghani and I were recently discussing how many of our clients were unnerved by geopolitical and economic worries and how it

More Like This...

See another Pearls of Wisdom blog post that may be of interest to you.

“Work, Work, Work, Work, Work, Work”

Topic:
Pearls of Wisdom
Excerpt:
This has been a busy year. I’ve had lots happening on the home front (a wedding!) and lots going on at the office (too long to list!) Managing work

More Like This...

See another Tax Planning blog post that may be of interest to you.

Saving in my Professional Corporation – It’s a Great Idea!

Topic:
Tax Planning
Excerpt:
The ability for professionals in Canada to incorporate their practice has existed for some time. Doctors, dentists, lawyers, accountants, and other

More Like This...

See another Wealth Planning blog post that may be of interest to you.

Dentists Get Their Financial Check-Up: Nexus attends the 2022 Ontario Dental Conference

Topic:
Wealth Planning
Excerpt:
In early May, we had the opportunity to attend the Ontario Dental Association’s (ODA) Annual Spring Meeting (ASM) in Toronto. Now in its 157th year,

On a Side Note…

See another CRM2 Nexus Notes Quarterly article that may be of interest to you.

No posts found.

On a Side Note…

See another Foundations & Endowments Nexus Notes Quarterly article that may be of interest to you.

Charitable Giving Made Easier

Topic:
Foundations & Endowments
Excerpt:
Giving to charities and supporting our community are important to us at Nexus. We donate a portion of our management fees back to the charities and

On a Side Note…

See another Human Interest Nexus Notes Quarterly article that may be of interest to you.

Worth 1,000 Words

Topic:
Human Interest
Excerpt:
A little humour makes the world a better place.

On a Side Note…

See another Inside Nexus Nexus Notes Quarterly article that may be of interest to you.

Where Have All the Boutiques Gone?

Topic:
Inside Nexus
Excerpt:
Many small, once independently managed, firms have fallen into the clutches of larger organizations such as banks, institutional money managers and

On a Side Note…

See another Investments Nexus Notes Quarterly article that may be of interest to you.

Don’t Worry, Be Happy

Topic:
Investments
Excerpt:
A recent article by David Brooks in The Atlantic magazine argues that, despite the heavy shroud of pessimism that envelopes most of our current

On a Side Note…

See another Pearls of Wisdom Nexus Notes Quarterly article that may be of interest to you.

Pearls of Wisdom

Topic:
Pearls of Wisdom
Excerpt:
Reading is one of the principal occupations in our profession. As we digest a wide range of material, interesting ideas and surprising facts – some

On a Side Note…

See another Tax Planning Nexus Notes Quarterly article that may be of interest to you.

A Nexus Feature on: First Home Savings Accounts (FHSA)

Topic:
Tax Planning
Excerpt:
The FHSA is a registered plan to help Canadians save for their first home and could play a role in either your or your adult child’s overall wealth

On a Side Note…

See another Wealth Planning Nexus Notes Quarterly article that may be of interest to you.

From The Editor: Planning for Long-Term Care

Topic:
Wealth Planning, Living to 100
Excerpt:
As part of our Living to 100 series, Nexus hosted a client event in June featuring guest speaker Karen Henderson, an expert in long-term care planning