Periods of declining stock and bond markets challenge investors and investment firms alike. In recent months, the emotional toll of declining stock and bond markets has been compounded by the rapid spread of new COVID variants, continued depressing news from the war in Ukraine, surging consumer prices, rising interest rates, and climate news that continue to worsen.
In the face of these circumstances, the answer, of course, is that we cannot be frozen into inaction, but must push forward in a challenging environment. For our clients and client service team, that means reviewing investment portfolios, objectives, constraints and asset allocations.
While, in many cases, the conclusion from these reviews is “hold your course”, in other cases, there are adjustments to be made. We encourage all clients to complete an investor profile survey and a behavioural investor survey, as well as to consider a financial plan. Contact your Pembroke representative to learn more.
For our investment team, the recent decline in markets not only triggered a review and an analysis of our existing holdings, but also drew our gaze to many companies that are available at lower valuations than we have seen in years. We are therefore back on the road, travelling and meeting companies. In this quarter’s On the Road article, we highlight a recent investment visit to Georgia.
As we review existing holdings and new ideas, we also need to appraise the changing macroeconomic environment to better understand the changing landscape. We invited Alpine Macro Chief Asset Allocation Strategist Caroline Miller to share her macroeconomic views in When Inflation and Markets Collide.
In Net Zero, Transition Risk and Sustainability Disclosures, we also explore what decarbonization and the growing country and company commitments to “Net Zero” greenhouse gas emissions may mean for investors.
While we cannot control the environment we are in, we can control how we react to it. In that spirit, we have tried to deliver a meaningful and thought-provoking issue of Perspectives for our clients. We hope that you find value in it.
Sincerely,
The Pembroke Team
Other Articles Of Interest
Disclaimer
This report is for the purpose of providing some insight into Pembroke and the Pembroke funds. Past performance is not indicative of future returns. Any securities listed herein, are for informational purposes only and are not intended and should not be construed as investment advice nor is it a recommendation to buy or sell any particular security. Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Pembroke seeks to ensure that the content of this document is correct and up to date but does not guarantee that the content is accurate and complete and does not assume any responsibility for this. Pembroke is not responsible for decisions or actions taken or made on the basis of information contained in this document.
