Our Commitment: To Study Current Concepts to Broaden Perspective
Here's a fundamental truth of financial markets: they change constantly. Of course that's true of market prices, but it applies to many other areas as well. Just when you think you have everything figured out—the ground shifts.
It's a full time job to stay ahead of these changes and, that's a task my team and I readily accept.
Staying Ahead of the Changes
One big area of change is the regulatory environment. Lately, we've seen a big push for greater transparency of investment fees and performance. With the implementation of CRM2, investors now have a clear view of their investment ROI. How revolutionary! But these changes brought no surprises to our clients—our commitment to transparency (including fees and performance) is longstanding.
Local and global markets are also changing. The price of oil, for example, has plummeted, resulting in huge market swings. China is declared a hot investment opportunity one minute and shunned the next.
Investment products are also in a state of constant change. Wall Street and Bay Street are always coming up with new places for investors to put their money. Many of these investment vehicles are incredibly complex (and often very risky). It can take days of analysis to fully grasp the true nature of these products.
Add changing technology, emerging business models, hybrid industry structures, and other innovations to the mix, and you've got a system constantly in flux.
Broadening Our Perspective
To stay on top of these changes, we're constantly amending and expanding our own perspective. We can never settle in and do things by rote. We have to evaluate every decision we make for the current context.
For example, I used to be a Canadian dividend guy. For clients who wanted regular investment income, Canadian markets were a good place to be. But a large part of the Canadian economy is based in the energy sector. And with the Canadian energy sector currently in the doldrums, I had to find new investments to recommend.
While all these changes sometimes drive my team and I loopy, we actually welcome them. They keep us on our toes, introduce us to new ideas and, most importantly, present new and exciting opportunities for our clients.
This article was prepared solely by Darren Pedersen who is a registered representative of HollisWealthTM (a division of Scotia Capital Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada). The views and opinions, including any recommendations, expressed in this article are those of Darren Pedersen alone and not those of HollisWealth.
Pedersen Group Wealth Management is a personal trade name of Darren Pedersen.