Attention to Detail – December 2018

Zoom Out, Baby, Zoom Out (Safal Niveshak)

Talk about a lousy way to end the year; as if the 10% and 8% drops in the S&P500 and TSX at the start of 2018 weren’t enough, the last three months have erased all gains year-to-date. Things are looking pretty rough outside North America, too, with global markets currently down 7% year-to-date. Volatility has been particularly bad, and with the ups and downs we’ve seen this quarter, markets are starting to look like failing heart monitors. Times like these can be difficult to stomach, but if we can will ourselves to view things from the right perspective, it doesn’t look so bad. That’s the moral of this month’s article (link), which draws comparisons between astronomy and investing; in the same way that we are just a spec in the universe, most corrections and bear markets are not so significant when considered in the grand scheme of things. So, as we brace ourselves for whatever 2019 might bring, let us not forget to zoom out from time to time, both in life and in investing.

Happy Holidays, and see you in the New Year!