All clients from a financial point of view, are in either one of two stages at all times. They are either already wealthy or they are trying to become wealthy. It’s binary in many ways; we are either trying to preserve what we have (you have “enough”), or you want to grow your wealth (you want to “create more”).
I generally invest the bulk of my clients’ money (and my own money) mostly in Canadian and US Equities, Fixed Income and other holdings. If we want some global exposure (and we would for growth-oriented clients), we can get that from a myriad of Canadian and American solutions. Most investors I speak to in Canada don’t invest nearly enough in the US. We use sound risk management techniques and strong quantitative processes when managing our clients’ wealth. Lastly, we do encourage all clients to invest a portion of their assets in the US - and I will tell you why below. There is a right and specific way to do this.
Innovation, change and adaptation – It’s what drives us and pushes the world forward. From the dawn of time human survival has been predicated on learning, using and mastering technology. From inventing stone arrows to hunt for food, to building spaceships to go to Mars, mastering technology is the one commonality throughout human history. At no time in modern history is this happening faster than it is today. The American capital markets are considered the largest, greatest, most reliable, transparent, regulated and the most sophisticated in the world. They have been the driving force of innovation and leadership for new technology that changes the way we live, work and play for the past 100 years or so.
Many of the world’s leading companies were created, born and then scaled in the American Capital markets and the world as a whole. Try this. Walk around your home or office one day – Call your friend or check in with work on your Apple iPhone or download a PDF from Microsoft or Adobe. Order a book or coffee (or anything really) to your front door from Amazon or Starbucks. After that you may plan a trip or holiday (you can’t work 24/7) by searching out destinations on Google.
When you get to your destination (flying a plane made by Boeing most likely with engines made by GE), perhaps you will go for a run in your Nike shoes, or a car ride in a GM, Ford or Tesla. Maybe you take the kids or grandkids to Disney? Don’t forget to check up on your health before you travel. You may need your heart pills or cholesterol medication from Pfizer or Amgen. You can also get some great travel protection or insurance from Visa or MasterCard come to think of it. I think you get my point. Every single one of the dozen or so companies I just wrote about above was created where? In America of course. America is home to the greatest wealth creation machine in human history - it’s called the US capital markets.
We need to understand and prosper from this as clients and investors. Let me show you how.
