Insights: Guarding against cybercrime, diversifying away from the indices + murmurations
Good reads:
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·????????Weekly Investment Strategy
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Best quote of the week:
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“Live life expecting the worst, hoping for the best, and living for the future.” – Jerry Garcia
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Best soundbites of the week:
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Unfortunately, we live in a world in which scammers operate. According to the Canadian Anti-Fraud Centre (CAFC), fraud and cybercrime totalled nearly $530 million in victim damages in 2022, which is ~40 per cent higher than in 2021. Here are some things you can do to help protect yourself:
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“A bank representative will never ask you for your Social Security number or passwords, and they will never ask you to read off codes for verification… [They] will never text you asking for confidential information.
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…Don’t trust emails purporting to be from your bank. Always delete them and call your bank directly, using the number on the back of your card. Citibank says: “Always independently verify emails and telephone numbers before engaging in any dialogue, and never click on any links or open attachments contained within unsolicited emails. Ensure your devices have up-to-date operating systems and anti-virus software. Never give your card PIN to anyone. It should only be known by you and you should only use it when you are initiating a transaction.”
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And if you’ve been a victim of identity theft, here are some suggestions to help protect yourself moving forward:
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“Log onto all three major credit bureaus — Experian (EXPGY), TransUnion (TRU) and Equifax (EFX) — and lock your credit so no one can take out loans or open accounts in your name. Your phone number will also be on a scammer list, so beware of more calls. Your bank may suggest setting up a new checking account altogether. Use it as an opportunity to review your automatic deposits.”
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Source: MarketWatch article
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Best visuals of the week:
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It can be difficult for Canadian investors to diversify their portfolios without investing globally. Here’s why…
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According to Russell Investments: Geographic diversification is especially important for Canadian investors due to the highly concentrated nature of our benchmark equity index, the S&P/TSX Composite Index. The index is dominated by the banking sector, which has generally comprised at least 30% of the total weighting. Another 25-30% of the index has traditionally been in energy and materials names.
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That means that upwards of 60% of the TSX is comprised of just three sectors.?This of course makes diversification (and therefore, proper risk management) difficult, unless you look to other markets.?
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However, it’s not as simple as adding exposure to another country.?The U.S. faces similar issues with regards to diversification of their indices, except their overweight sectors are different. As an example, Apple, Microsoft, and Amazon alone represent 30% of the tech-focused Nasdaq Composite Index.
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As noted in the Russell report: The importance of geographic diversification isn’t just because of the concentration issue in domestic indexes. Many different economic factors – economic growth, interest rates, currency, political events and so on – can influence which region leads in performance. Additionally, globalization and democratic trends may favour emerging economies, so it may be a wise strategy to ensure you have exposure to regions outside of North America and Europe.
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Recipient of Responsible Investing credential:
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As you may recall, I earned my CFA ESG certificate earlier this year from the CFA Institute.
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The next step in building my expertise in the responsible investment space was to earn my Responsible Investment Advisor Certification (RIAC).?RIAC provides foundational and in-depth training on the identification and implementation of environmental, social and governance (ESG) factors into investment decision making.?I’m proud to have made the list of July 2023 recipients.
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领英推荐
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I’d love to hear from you:
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Do you have a question about the markets? Or perhaps you’d like to learn more about a particular financial planning topic? Maybe you’ve got a question about your own personal situation?
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Send me your question, and I’ll include it as a topic in an upcoming newsletter: [email protected].
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Beyond the markets:
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I haven’t shared any completely random facts lately, so here’s some good material to make you a local Cliff Clavin this weekend:
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·????????At one time, George Washington was the nation's largest whiskey producer. He made 11,000 gallons in 1799.
·????????Murmurations are the graceful, undulating patterns starlings create when they flock together in the sky. Scientists are still unsure how the birds coordinate their movements so quickly.
·????????A solar eclipse helped end a six-year war in 585 BCE. When the sky suddenly darkened during a battle between the Lydians and the Medes in modern Turkey, soldiers took it as a sign to cease fighting.
·????????Frederick Douglass was deemed the 19th century’s most photographed American. He was a formerly enslaved man who became a prominent activist, author and public speaker. He was a leader in the abolitionist movement.
·????????Staff members of the Slovak and Slovenian embassies meet once a month to exchange incorrectly addressed mail.
·????????The 100 folds in a chef’s toque are said to represent 100 ways to cook an egg.
·????????The original version of Monopoly was a cautionary tale against the perils of capitalism.
·????????Big cats like lions and jaguars love catnip, too. I wouldn’t recommend you test this fact!
·????????Barbie's full name is Barbara Millicent Roberts.
·????????Ironically, the only member of ZZ Top without a beard has the last name Beard.
·????????Morton's toe is when your second toe is longer than your big toe. It’s widespread in art, with the Statue of Liberty being one of the more famous examples.
·????????After OutKast sang "Shake it like a Polaroid picture," Polaroid released this statement: "Shaking or waving can actually damage the image."
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Source: Mental Floss
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Thanks for reading, and I wish everyone a great long weekend!?
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Cheers,
Kim
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Kim Inglis, BCom, CIM, PFP, FCSI, RIAC
Portfolio Manager
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T: 416.777.6417 (Toronto)
T: 604.654.1160 (Vancouver)
T: 250.979.1803 (Kelowna)
TF: 1.877.363.1024
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The opinions expressed in this newsletter are those of the Financial Advisor Kim Inglis, BCom, CIM, PFP, FCSI, CAFA and not necessarily those of Raymond James Ltd. (“RJL”) or Raymond James (USA) Ltd. (“RJLU”).?Statistics, factual data and other information presented are from sources, believed to be reliable but accuracy cannot be guaranteed. It is furnished on the basis and understanding that Raymond James Ltd. and Raymond James (USA) Ltd. is to be under no liability whatsoever in respect thereof. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Raymond James Ltd. and Raymond James (USA) Ltd. financial advisors may only transact business in provinces and/or states where they are registered. Follow-up and individualized responses involving either the effecting of or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in provinces or states where the financial advisor is not registered. Raymond James Ltd. is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund. Raymond James (USA) Ltd. is a member of FINRA/SIPC. Raymond James (USA) Ltd. (RJLU) and advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. This provides links to other Internet sites for the convenience of users. Raymond James Ltd. is not responsible for the availability or content of these external sites, nor does Raymond James Ltd endorse, warrant or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same privacy policy which Raymond James Ltd adheres to.