Ep.4 Investment Pitfall #2: Building Portfolios Based on Predictions

Ep.4 Investment Pitfall #2: Building Portfolios Based on Predictions
Episode Description

As the great economist, John Kenneth Galbraith said, “There are two kinds of forecasters: those who don’t know, and those who don’t know they don’t know.”

It’s human nature to be drawn to stories. We all want someone to tell us how things will turn out and throughout history, people have used predictions to gain power. We see the same cycles play out in financial media and services.

From journalist predictions aimed at boosting readership and viewership to expert predictions coloured by the ingrained biases that we all have, we’re passionate about the fact that financial predictions should not be used in the management of portfolios. Predictions can easily sabotage your financial portfolio and jeopardize your long-term financial security.

On this episode, Keith and Marcelo talk about the two main sources of financial predictions, how to identify predictions, some past predictions and how they’ve stacked up against actual outcomes, the dangers of building portfolios based on predictions, and more!

Be sure to join us for our next episode where we’ll be continuing the series on investment obstacles. Thank you for listening!

Key Topics:

  • Why the financial media leverages predictions for increased viewership and business growth (2:48)
  • Current examples of predictions shared in the financial media (4:43)
  • The difficulty with differentiating between good financial journalism and noise (5:47)
  • How the financial services businesses benefit from predictions (7:16)
  • Cases of memorable “flavour of the month” investment predictions (8:42)
  • Why a recent prediction which recommended playing the VIX is dangerous for investors (9:52)
  • Investment predictions from the book, Boom, Bust & Echo (11:59)
  • Assessing the financial impact if you had invested according to the predictions of Boom, Bust & Echo (13:39)
  • How investment predictions can derail long-term financial plans (15:15)
  • Why following predictions often results in anxiety, rather than assurance (18:12)
  • The exercise we did in 2014 to assess the accuracy of expert predictions (19:14)
  • What the research shows about the performance of tactical asset strategies versus their benchmark (21:55)
  • Looking back at some of the big names and predictions during the economic crisis and recovery during 2007-2012 (25:19)
  • Why people are drawn to predictions despite their inconsistencies (30:44)
  • How the Dunning–Kruger effect causes expert predictions to persist (32:13)
  • Why you should view predictions as noise (35:53)
  • How your investment philosophy protects you from falling prey to predictions (36:19)
  • And much more!

Mentioned in this Episode:

Thanks for Listening!

Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at lawrence@tma-invest.com

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Ep.3 Investment Pitfall #1: Not Having an Investment Philosophy

Ep.3 Investment Pitfall #1: Not Having an Investment Philosophy
Episode Description

One of the biggest challenges of investing is being able to stop mistakes from occurring. It’s one of those areas where the winner can be the person that makes the least mistakes.

An investment philosophy that aligns with your goals and personal financial affairs is crucial for achieving financial security. It steers the decision-making process and stipulates how your money will be managed across both good and challenging times.

Especially in challenging times like the current pandemic, high levels of noise make it difficult not to be swayed to make adjustments to your portfolio based on market fluctuations and you’re particularly vulnerable when you don’t have an investment philosophy to guide you.

On this episode, Keith and Marcelo discuss why you need a strategy to avoid making investment mistakes, the components of an investment philosophy, the criteria you need to consider when developing your investment philosophy, the consequences of investing without a philosophy, and more!

Be sure to join us for our next episode where we’ll be continuing the series on the Deadly Sins of Investing by looking at why you shouldn’t build your portfolio based on investment predictions. Thank you for listening!

Key Topics:

  • Common investment mistakes (1:27)
  • The winner can be the person who makes the least mistakes (2:11)
  • The reasons investment mistakes occur (3:05)
  • Everyday sources of noise (3:50)
  • How mistakes affect your long-term investment goals (5:19)
  • Why you need an investment philosophy (5:48)
  • How to develop your investment philosophy (6:57)
  • Human nature and the need for guiding rules and principles (9:10)
  • Linking an investment philosophy to an individual investor (12:07)
  • Benefits of having an aligned investment philosophy (13:03)
  • Consequences of investing without a philosophy (14:23)
  • The impact of not having an investment philosophy in challenging times like these (16:42)
  • Examples of erratic investor behavior during the 2007-2008 market decline (18:44)
  • How to identify the right investment philosophy (21:10)
  • Questions you should ask yourself about your investment philosophy (22:04)
  • And much more!

Mentioned in this Episode:

Tulett, Matthews & Associates
Keith Matthews’ Book | The Empowered Investor: A Guide to Building Better Portfolios

Thanks for Listening!

Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at lawrence@tma-invest.com

Follow Tulett, Matthews & Associates on social media on Instagram, LinkedIn, and more!

Ep.2 Investment Noise: Leads to Traps and Pitfalls for Investors

Ep.2 Investment Noise: Leads to Traps and Pitfalls for Investors
Episode Description

Long-term investment success is based on two crucial elements: following winning principles and conquering the obstacles along the way. Today we’re taking a look at the latter.

Although the details of investment success look different for every investor, we’re all aiming for the same goal – financial security. Along the journey, there’s one big obstacle that can trip up even an experienced investor. That obstacle is noise.

Noise comes from sources we’re exposed to every day and which are often packaged as helpful information. We want to empower you to not only understand the different types but to also learn how to spot and protect yourself from them.

On this episode, Keith and Marcelo discuss the way obstacles block the path to investment success, why knowing good investing principles isn’t enough, the four main sources of noise that you’ll encounter, how you can block out the noise, and more!

Be sure to join us for the next episode where we’ll be starting a series on the Deadly Sins of Investing. Thank you for listening!

Key Topics:
  • How obstacles come up in your daily activities (1:29)
  • Why simply following a guide is often easier said than done (3:38)
  • The main obstacle to achieving financial security (4:48)
  • The four types of noise affecting your investment goals (5:24)
  • How general media might lead you to make bad investment decisions (6:16)
  • What is a wholesaler in the context of investing? (8:31)
  • Why expert predictions are inherently problematic (9:24
  • How friends and family can become particularly difficult sources of noise (11:27)
  • The core reason there’s so much noise around us (15:20)
  • The slippery slope of tuning in to the noise (19:04)
  • Why you need to stick to a long-term investing strategy (22:03)
  • What previous recessions show us about investing in equities (23:44)
  • How you can tune out the noise (27:05)
  • Our challenge for you to try when you’re consuming media (28:13)
  • The combination you need to increase the odds of your long-term investing success (28:40)
  • And much more!
Mentioned in this Episode:

The Investment Funds Institute of Canada/Morningstar 2007/2008 Market Correction Graph
Tulett, Matthews & Associates
Keith Matthews’ Book | The Empowered Investor: A Guide to Building Better Portfolios

Thanks for Listening!

Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at lawrence@tma-invest.com

Follow Tulett, Matthews & Associates on social media on Instagram, LinkedIn, and more!

Ep.1 | Welcome to The Empowered Investor

Ep.1 Welcome to the Empowered Investor

 

Episode Description

Welcome to the first episode of The Empowered Investor. Today we’re introducing ourselves to you and sharing the foundational principles of the Empowered Investor. Join us on this inspiring journey, hosted by Keith Matthews and Marcelo Taboada.

Keith Matthews is the author of The Empowered Investor: A Guide to Building Better Portfolios, and a Partner and licensed Portfolio Manager at Tulett, Matthews & Associates (TMA). Keith left the institutional investment management industry in 1997 to work directly with private investors because he wanted to make a difference. He felt that he could have a positive impact on helping individuals create a successful investment experience.

Marcelo Taboada is an Associate at TMA and after finishing his studies, he decided that he wanted to work in a field that allowed him to help people and cultivate his intellectual curiosity. Marcelo decided to make the move to Private Wealth Management to grow professionally in an environment where the client is priority number one.

On this episode, Keith and Marcelo share their stories on how they joined the private client world and talk about the Empowered Investor narrative, why they believe financial security is the thread that links all investors, what you’ll learn from listening to the show, and more!

Key Topics:
  • Marcelo’s role at TMA (1:26)
  • How Marcelo went from childhood in El Salvador to becoming a financial advisor in Canada (3:37)
  • Why Marcelo almost left finance to start a new career path (6:03)
  • The benefits of an independent firm (6:55)
  • Keith’s role at TMA (7:42)
  • Why Keith’s inclination towards helping people led him away from bond trading (8:32)
  • The aha moment that kick-started Keith’s private client career (10:16)
  • Why Keith wrote The Empowered Investor (13:18)
  • The common goal all investors are aiming for (14:13)
  • The biggest challenge investors face (16:04)
  • How our core belief will inform the direction of this show going forward (18:45)
  • What you’ll learn by joining us for this podcast (19:23)
  • And much more!
Mentioned in this Episode:

Tulett, Matthews & Associates
Keith Matthews’ Book | The Empowered Investor: A Guide to Building Better Portfolios

Thanks for Listening!

Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at lawrence@tma-invest.com

Follow Tulett, Matthews & Associates on social media on Instagram, LinkedIn, and more!

Keith Matthews

Keith Matthews

Partner & Portfolio Manager

Marcelo Taboada

Marcelo Taboada

Associate Portfolio Manager

Ruben Antoine

Ruben Antoine

Portfolio Manager

The Empowered Investor Book

As an advisor who has studied and implemented the principles of successful investing with clients, I have witnessed the powerful and meaningful difference they can make in people’s lives. My hope is that this book will inspire you to build a better investment experience for you and your family.

Request your complimentary copy.

 

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