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Remembering What Matters: Market Records and Life's Precious Lessons |
Good afternoon and happy Sunday to you.
Before delving into this week’s financial discussion, I'd like to honor the memory of three remarkable individuals whose lives were tragically cut short, reminding us all of life's precious fragility.
Just over a year ago, on August 29, 2024, the hockey world was forever changed when Johnny and Matthew Gaudreau were tragically killed while riding bicycles in New Jersey. Johnny, a seven-time NHL All-Star known as "Johnny Hockey," was 31, while his brother Matthew, 29, was a former professional player who had transitioned to coaching youth hockey. The brothers were killed on the eve of their sister's wedding when they were struck by a suspected drunk driver.
I was fortunate to meet Johnny once, when my son was taking skating lessons at WinSport in Calgary, and the Calgary Flames happened to be training there that day. Like so many people, I struggled for weeks to cope with this tragedy.
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Picture of Mark Giordano, Johnny Gaudreau, Shamez Kassam, and Izmir Kassam |
Just last week, another profound loss shook Vancouver Island's hockey community. Twelve-year-old Xavier Rasul-Jankovics died in after being struck by a car while he was rollerblading with his family. He was described by those who knew him as "a wise, wonderful soul who lit the lights of his family, his friends, and an extended community". The young hockey player was remembered as "the definition of a great teammate, hardworking, selfless, and full of heart". His celebration of life took place in Duncan on Saturday, where the hockey community came together to honor his memory. With my son also being 12 years old, this tragedy really hit home. A photo of Xavier is below, courtesy of chekNEWS. My deepest condolences to the family.
What strikes me most about both of these tragic stories is how these individuals, despite their shortened time with us, left incredible marks on their communities. Johnny and his brother Matthew were remembered not just as an amazing hockey players but also for their kindness, generosity, and focus on family. Xavier's impact was felt "far beyond the ice" through his leadership and character.
Both families have established foundations as a result of the tragedies. The Gaudreau family started the John and Matthew Gaudreau Foundation to help youth hockey initiatives and support hockey families who have faced tragedy, while the Xavier Rasul-Jankovics Foundation will support "initiatives in support of Xavier's spirit of positive community impact".
These stories, while heartbreaking, offer profound reminders about what truly matters: family, community, and leaving a positive impact on the world around us.
Market Summary
Stock Market Developments: A Week of Records and Reflections
Last week proved eventful for equity markets, with the S&P 500 reaching new milestones before pulling back on Friday. The S&P 500 ended the day 0.64% lower at 6,460.26, but still scored its fourth winning month in a row. Canada's TSX rose to 28,564 points on August 29, gaining 0.46% from the previous session and climbing 4.36% over the past month.
The week's highlight came Thursday when the S&P 500 rallied to a new all-time-high intraday price of 6508 closing at 6502, marking the first time the index closed above 6,500.
NVIDIA remained the focal point of investor attention as the AI giant reported quarterly results. While Q2 year over year revenue growth of 56% to $54 billion impressed, the stock's muted reaction highlighted how lofty expectations are becoming increasingly difficult to meet. The company's massive influence was underscored by its $4.2 trillion market capitalization, now accounting for 8% of the S&P 500.
Friday's retreat was triggered by inflation data that met expectations but raised concerns about the Federal Reserve's policy path of potentially cutting interest rates. Core PCE, a key inflation measure watched by the Federal Reserve which excludes the costs of food and energy, increased 2.9% in July, in-line with expectations but an acceleration from the prior month and the highest level since February.
As shown below, September has historically been the stock market's worst month, with the S&P 500 declining an average of 1.2% since 1928 - underperforming all other months.
Is Your Portfolio Missing Critical Growth Opportunities?
Over the next few weeks, I'll be sharing why small cap and international stocks deserve a place in every well-constructed portfolio.
Recently, I welcomed two new clients who had been working with advisors at major Canadian banks. When I reviewed their portfolios, a concerning pattern emerged: their investments were heavily concentrated in North American large cap companies, with zero exposure to small cap stocks, international markets, gold, or private capital investments. Even more troubling, they were paying high fees for this limited approach while receiving minimal guidance beyond basic investment allocation.
In my opinion, a "one-size-fits-all" strategy is unfortunately common at traditional banks and many large independent financial advisory firms, but it's not serving investors well in today's dynamic market environment.
At Mount Columbia Private Wealth, we take a forward-thinking approach to wealth management. As Wayne Gretzky famously said, we want to be "skating to where the puck is going" – positioning your portfolio for tomorrow's opportunities, not yesterday's winners.
If you're currently investing through a bank (or even another "independent" advisor), I encourage you to seek a second opinion. Make sure you're not trapped in a high-fee, cookie-cutter portfolio that's looking backward instead of forward.
Your financial future deserves better than the status quo.
Schedule your free portfolio review and fee analysis, using the link below:
https://calendly.com/skassam-mountcolumbiawealth/30min
Have a great week ahead. Enjoy your holiday Monday!
Best regards,
Shamez Kassam MBA, CFA
