Monday, October 22, 2012

Money Show - Kim Githler

Kim Githler is president and CEO of the Money Show. She made the opening remarks for this Toronto Money Show of 2012.

Kim opened with the remark that there are almost 11M high net worth individuals worldwide. High net worth individuals are those that have $1M plus. Most of these individuals (HNWI) are doing fine in this economy.

She also talked about how large losses can be damaging to you portfolio and the fact that losses count more than gains. If you lose 57% of your portfolio, you have to have more than a 100% gain just to make up this loss. In retirement such large loses can be devastating.

She talked about secular market cycles. A secular bear market can last for 12 to 25 years and a secular bull market can last for 10-15 years. We are currently in a secular bear market. She talked about reading Ned Davis's research into cycles. His site is here. You have to subscribe to get information there. However a recent paper by Baird uses some of Ned Davis's charts. There are lots of people who quote Ned Davis.

She said that you have to fight to protect your portfolio in secular bear markets. In these markets alternative investments give better returns. Alternative investments would be gold, minerals and resources.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.

1 comment:

  1. Its true losing money in stocks can happen more often than many realize. Value investing which includes undervalued stocks as well as holding larger amounts of cash when the market is expensive. In addition buying convertable preferred securities as well as some real estate investment trusts along with some international securities can help limit the size and scope of any loses.