Business
“You Have To Take The Emotion Out Of Investing” – Are You Considering Buying In?
Are you? You may not be the only one. We have seen stock markets like the Toronto Stock Exchange take major hits over the past two months due to the effects of Covid-19 taking its toll on almost every industry. With some recent rises in markets continuing to build investor confidence, we are still left in the unknown for why this is happening. Living through a historically unprecedented time uncovers a long list of questions and concerns for our livelihood as individuals, quality of life for the future, and how best to navigate through this time. I’m sure during the Irish potato famine in 1845-1849, there were many people asking – what’s going on with all the potatoes?
In a survey undertaken by the group “500 Startups” based in Silicon Valley, surveyed a group of investors to report on how they have been affected by the pandemic. The investor group consisted of venture capitalists, angel investors, corporate venture investors, and family office investors. The report showed 83% having their investment activity and plans be affected by Covid-19. As seen in the chart below, 62.6% of the group feel that startups and early-stage investors will be feeling the effects of the pandemic for 1-2 years. Their advice to startups during this time is to simply decrease costs and to increase their runway for how long they can stay in business.
Data taken from 500 Startups report on The Impact of COVID-19 on the Early-Stage Investment Climate
We spoke with Kevin Skinner, an investment advisor for Servus Wealth Strategies, who gave us some insight and knowledge pertaining to open concerns for novice investors who may be seeking to enter the market or simply are in the dark for what to with their holdings. Kevin has been working in the financial services industry for over a decade and is a top investment advisor in their St. Abert branch.
Considering what we have seen so far in stock markets, Is it a good time for new long term investors to buy now or continue to wait?
Striving away from the idea that fortune-tellers exist within trading, which is not true, a good education on markets is always a good pre-market investment of your own time. In regards to those looking to be a long term investor, he mentions:
“If you’re a long term investor the adage is that it’s always the best time…so question number one has to be, can you afford to invest the money right now…the second question is, what else can you do with this money. If you have $10,000 in the bank and $10,000 in credit card debt, always better to pay off the debt than you are investing that money.”
We want our money working for us right? Having a solid grasp of how your money is working for you may allow you to make a better-educated investment without adding any financial risk. The idea that there are smoke signals in the market to tell you it is the right time to invest, he mentions:
“If it was that easy, I would be sitting on my private island somewhere enjoying the world…It really is about investing correctly and investing to your plan. If your plan is to have the money for the long term, You need to have an understanding of your risks and your comfort.”
What if I have money to invest right now, should I wait for the bottom line?
Kevin advised the dollar cost average tool to take the emotion out of investing. With so much volatility in the market, we revisit the concept that fortune-tellers exist to tell other investors when to buy; there is no way to fully identify the risks. To ensure you’re getting good value for your money, Kevin offers an example of the dollar cost average approach:
“Take your pool of money, call it $12,000. You invest $1,000 a month in a particular fund. You catch the market as it wobbles, so you don’t necessarily buy it all at the bottom, you’re definitely not buying it all at the top. You’re averaging your cost date and to get a good value for what you’re buying.”
Do you have an opinion on panic selling at a loss?
Straight out of the gate, Kevin is a firm believer that anything that involves the word “panic” is never a good thing. Investopedia’s definition of panic selling refers to the sudden, wide-scale selling of a security or securities by a large number of investors, causing a sharp decline in price. We have seen this as a result of the COVID-19 pandemic. Panic selling can be directly related to having an emotional connection to your investment, but to ensure the doom and gloom doesn’t get the better of you, having an objective view allows you to stay logical and stick to your plan. Kevin mentions:
“you have to do whatever you can to pull that emotion back out. Panic selling immediately is focused on the emotional side of it. You have to remove the emotion from investing.”
Not as easy as it sounds right? We are going through an emotionally ramped up time during this pandemic, not to mention dealing with all the other unknown realities of how our economy will bounce back or when the non-essential business will be reopened. Kevin recommends choosing places to move your investments to take the panic out.
“You don’t call a realtor when your house is on fire. That’s where we’re at in the market right now, we know the house is on fire. We don’t know how long it’s going to last, how bad it’s going to be, or what it’s going to look like when it’s put out.”
Can you offer any comment on the fear of more lows, or what are the key indicators that we should be aware of?
We have seen stocks rise over the past week due to economic stimulus measures and the actions being taken to gradually reopen global economies. Experienced investors are forward-thinking individuals, they take into consideration the risk-reward for having objective optimism in certain industries. Kevin encourages to take the view that the rises we have seen are temporary for now, he mentions:
“Know that there’s another drop coming. Know that we don’t know how bad it’s going to be. And we don’t know how long the recovery is going to take. which is why we’re saying it’s going to be 2021 at least before the flooding of the market recovers”
We are expecting a long and slow road to recovery, but finding the bottom line can be almost impossible. Ask yourself, what happens to market optimism if a vaccine is made available tomorrow? Does that mean the market will become flooded with investors? It is impossible to know; by choosing a trusted investment advisor they can assist with taking the emotion out of your investments, and you can lean on their knowledge of markets to offer that objective optimism. For individual investors, it is useful to be aware of the activity in that sector to aid in growing your confidence, or the counter, it may give you key information to avoid a bad buy right now.
How have you been navigating through this time?
Kevin is one of many continuing to work from home during this period of self-isolation. With any new environment carries challenges. He is thankful for Servus Credit Union for the support he has received and the efforts put forward by the whole team. He has been spending some time in the welcomed sunshine playing sports with his 12-year-old son in his driveway.
What has Servus Credit Union been proactively doing to support its customers right now?
Servus Credit Union released their response to COVID-19, issuing kind words to their members that they are here for them during this time. Their CEO, Garth Warner also released a personal letter to all of their members speaking on behalf of the team doing everything they can do to support their members. Kevin mentions:
“Our members are truly members, they’re all owners. Everyone who deals with the credit union holds a piece of the credit union. Right now we’re trying to keep our whole business, our owners, and our members afloat…so whatever we do, is what’s best for us as an organization which means it’s also what’s best for our members”
What are you personally looking forward to after this period of self-isolation?
“I coach sports. Of course every kid’s sport is canceled right now. We lost the end of our sports seasons for the winter, we’re going to miss the beginning of our sports season for the spring. And that’s what I miss most is getting outside with the kids and just having fun.”
If you would like to learn more about Servus Credit Union, Servus Wealth Strategies or Kevin Skinner, visit their website or social links below.
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The cost of the bureaucracy increased by $6 billion last year, according to newly released numbers in Public Accounts disclosures. The Canadian Taxpayers Federation is calling on Prime Minister Mark Carney to immediately shrink the bureaucracy.
“The Public Accounts show the cost of the federal bureaucracy is out of control,” said Franco Terrazzano, CTF Federal Director. “Tinkering around the edges won’t cut it, Carney needs to take urgent action to shrink the bloated federal bureaucracy.”
The federal bureaucracy cost taxpayers $71.4 billion in 2024-25, according to the Public Accounts. The cost of the federal bureaucracy increased by $6 billion, or more than nine per cent, over the last year.
The federal bureaucracy cost taxpayers $39.6 billion in 2015-16, according to the Public Accounts. That means the cost of the federal bureaucracy increased 80 per cent over the last 10 years. The government added 99,000 extra bureaucrats between 2015-16 and 2024-25.
Half of Canadians say federal services have gotten worse since 2016, despite the massive increase in the federal bureaucracy, according to a Leger poll.
Not only has the size of the bureaucracy increased, the cost of consultants, contractors and outsourcing has increased as well. The government spent $23.1 billion on “professional and special services” last year, according to the Public Accounts. That’s an 11 per cent increase over the previous year. The government’s spending on professional and special services more than doubled since 2015-16.
“Taxpayers should not be paying way more for in-house government bureaucrats and way more for outside help,” Terrazzano said. “Mere promises to find minor savings in the federal bureaucracy won’t fix Canada’s finances.
“Taxpayers need Carney to take urgent action and significantly cut the number of bureaucrats now.”
Table: Cost of bureaucracy and professional and special services, Public Accounts
| Year | Bureaucracy | Professional and special services |
|
$71,369,677,000 |
$23,145,218,000 |
|
|
$65,326,643,000 |
$20,771,477,000 |
|
|
$56,467,851,000 |
$18,591,373,000 |
|
|
$60,676,243,000 |
$17,511,078,000 |
|
|
$52,984,272,000 |
$14,720,455,000 |
|
|
$46,349,166,000 |
$13,334,341,000 |
|
|
$46,131,628,000 |
$12,940,395,000 |
|
|
$45,262,821,000 |
$12,950,619,000 |
|
|
$38,909,594,000 |
$11,910,257,000 |
|
|
$39,616,656,000 |
$11,082,974,000 |
From the Daily Caller News Foundation
Unelected regulators and bureaucrats from the United Nations have pushed for crushing the global economy in the name of saving the planet.
In October, the International Maritime Organization (IMO), a specialized agency within the U.N., proposed a carbon tax in order to slash the emissions of shipping vessels. This comes after the IMO’s April 2025 decision to adopt net-zero standards for global shipping.
Had the IMO agreed to the regulation, it would have been the first global tax on greenhouse gas emissions. Thankfully, the United States was able to effectively shut down those proposals; however, while these regulations have been temporarily halted, the erroneous ideas behind them continue to grow in support.
Proponents of carbon taxes generally argue that since climate change is an existential threat to human existence, drastic measures must be taken in all aspects of our lives to address the projected costs. People should eat less meat and use public transportation more often. In the political arena, they should vote out so-called “climate deniers.” In the economic sphere, carbon taxes are offered as a technocratic quick fix to carbon emissions. Is any of this worth it? Or are the benefits greater than the costs? In the case of climate change, the answer is no.
Carbon taxes are not a matter of scientific fact. As with all models, the assumptions drive the analysis. In the case of carbon taxes, the time horizon selected plays a major role in the outcome. So, too, does the discount rate and the specific integrated assessment models.
In other words, “Two economists can give vastly different estimates of the social cost of carbon, even if they agree on the objective facts underlying the analysis.” If the assumptions are subjective, as they are in carbon taxes, then they are not scientific facts. As I’ve pointed out, “carbon pricing models are as much political constructs as they are economic tools.” One must also ask whether carbon taxes will remain unchanged or gradually increase over time to advance other political agendas. In this proposal, the answer is that it increases over time.
Additionally, since these models are driven by assumptions, one would be right in asking who gets to impose these taxes? Of course, those would be the unelected bureaucrats at the IMO. No American who would be subject to these taxes ever voted for the people attempting to create the “world’s first global carbon tax.” It brings to mind the phrase “no taxation without representation.”
In an ironic twist, imposing carbon taxes on global shipping might actually be one of the worst ways to slash emissions, given the enormous gains from trade. Simply put, trade makes the world grow rich. Not just wealthy nations like those in the West, but every nation, even the most poor, grows richer. In wealthy countries, trade can help address climate change by enabling adaptation and innovation. For poorer countries, material gains from trade can help prevent their populations from starving and also help them advance along the environmental Kuznets curve.
In other words, the advantages of trade can, over time, make a country go from being so poor that a high level of air pollution is necessary for its survival to being rich enough to afford reducing or eliminating pollution. Carbon taxes, if sufficiently high, can prevent or significantly delay these processes, thereby undermining their supposed purpose. Not to mention, as of today, maritime shipping accounts for only about 3% of total global emissions.
The same ingenuity that brought us modern shipping will continue to power the global economy and fund growth and innovation, if we let it. The world does not need a layer of global bureaucracy for the sake of virtue signaling. What it needs is an understanding of both economics and human progress.
History shows that prosperity, innovation, and free trade are what make societies cleaner, healthier, and richer. Our choice is not between saving the planet and saving the economy; it is between free societies and free markets or surrendering responsibility to unelected international regulators and busybodies. The former has lifted billions out of poverty, and the latter threatens to drag us all backwards.
Samuel Peterson is a Research Fellow at the Institute for Energy Research.
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