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Slip into something more comfortable and delve into personal finance with Josh Sheluk and Colin White, experienced portfolio managers at Verecan Capital Management. Each episode demystifies complex financial topics, stripping them to their bare essentials. From investment strategies and financial planning to economic headlines and philanthropic giving, delivered with a blend of insight, transparency, and a touch of humour. Perfect for anyone looking to understand and navigate their financial future with confidence. Subscribe now to stay informed, empowered, and entertained.
Verecan Capital Management Inc. is registered as a Portfolio Manager in all provinces in Canada except Manitoba.
Welcome to Bare Naked Money, the podcast where we strip down the complex world of finance to its bare essentials. With your hosts, Josh Shellich and Colin White, portfolio managers with Verican Capital Management Inc.
Colin White:Well, Josh, we're Liberation Day plus one. So this is kinda like the boxing day of Liberation Day, the day after. And it seems the world's on fire.
Josh Sheluk:Do you feel liberated?
Colin White:I I I don't know what liberation feels like, but I I don't imagine this is what it should be. No.
Josh Sheluk:I I think, if I am correct, it's it feels like higher prices on everything your country imports. I'm pretty sure that's that's what it feels like.
Colin White:Yeah. No matter what your country is actually. Like, it's all of them and countries we've never heard about have been affected by this. So, you know, it's it's pretty all encompassing. But the market tends seems to have reacted decisively.
Colin White:It it seems to be bad news for a day anyway.
Josh Sheluk:Yeah. For now, I think, one of the headlines said this morning it was worse than the worst possible news. So Worse wow. Figure that out. Right?
Colin White:I'm not sure where they go from there.
Josh Sheluk:Yeah. That seems a little bit extreme to me as headlines tend to be, but market's decisively down today with global stocks down about 3%. So it's being reflected in the values of a lot of businesses out there. It's being viewed very negatively at the moment.
Colin White:So year to date, the market's down 4%?
Josh Sheluk:Depends on market you're looking at. I think in Canada here, that's probably about right. So for the border, it's more than that. But for most markets, actually, I think Europe's still up. So depends where you look, depends which market you're talking about.
Josh Sheluk:Globally, we're probably down about that same level. So it hasn't been a great start to the year. Also not a catastrophe. A lot of people would probably be a lot more pessimistic than their portfolios are actually showing at
Colin White:the moment. Well, it was interesting for me that, you know, we kinda crossed the threshold today because everybody keeps asking us about, you know, is there anything out there to buy? Was it's interesting to see our group get a little excited today because there was some really beat up companies. And I don't know how much you wanna share from how we made the sausage, but, yeah, we we got excited enough to do some stuff.
Josh Sheluk:Yeah. Well, I've had those questions too from clients over the past few weeks or so, especially those that are a little bit more comfortable with volatility asking, is now the time to put more money into the market? And I've been saying, like, we're down, like, 2% on the year. Just pump the brakes a little bit. But now and I said that the headline number, we're down about 3% on the markets globally, but if you split that apart a little bit, there are some parts of the market that are getting really punished today and those, I think that on the surface, have a bit more exposure to international trade are the ones that are getting hurt the most.
Colin White:Perceived exposure to the national event. Right? Because, again, these these decisions are all happening in an instant without necessarily the complete due diligence that would be required to get a nuanced answer to these questions. So
Josh Sheluk:That's right. Well, I I think the due diligence required doesn't really exist because nobody really knows. Right? You don't know exactly what the impact is gonna be. You don't know how capable some of these businesses are at pivoting away from where they're sourcing product or where they're selling product.
Josh Sheluk:We don't know how long the tariffs are going to be in place. So and when prices increase, it doesn't necessarily mean things are bad for the business. It it just means maybe there's slightly less demand because prices are higher. So there's a lot of unknowns. So anybody that says confidently they know how this is going to impact business x or business y, they're fooling themselves and fooling everybody else too.
Josh Sheluk:So that's where we get kind interested because there are some businesses that we think are super high quality that are out there that sure are exposed to international trade in some respects, but they're down fifteen-twenty percent today. And I just don't see profits because technically or or theoretically, a business is worth all of its future profits discounted to today. Do you think that these tariffs have discounted their their revenues and profits by 20% going forward in perpetuity. I'm simplifying things a little bit there, but the answer for us is probably not.
Colin White:Yeah. Well, I mean, for you, I'll I'll look for a couple of keywords in market commentary to understand where we are. And, you know, the the two big ones I look for are plunge and soar. Because if somebody says to me, you get on an elevator and it's got two buttons, one's plunge and one's sore, like that that's an elevator you don't wanna stay on, but
Josh Sheluk:Which one are you picking?
Colin White:Well, exactly. I mean, one one means go up, go down, but they seem so much more dramatic than that. But and again, think that we need to add the normal caveat that we put on something like this. There are some individuals who are going through absolute hellos. There are industries that are laying off massive amounts of their workforce.
Colin White:There are people that are within a couple of years of retirement whose livelihoods are being dramatically disrupted right now. So there's absolutely human toll plan and I don't want for a second to come off as glib or unfeeling but people turn to us for commentary. And the market's gonna market and the capital allocation is gonna continue. I think the biggest thing I'm waiting for is okay, what's the next announcement? Because there needs to be a next announcement.
Colin White:And and and is that gonna come out of The US or is that gonna come out of somewhere else and, you know, the ball's gonna keep bouncing. But I I'd like to give a shout out to all my gold friends today because I checked gold's down today too. And Oh, how could
Josh Sheluk:it be?
Colin White:A shout out to my Bitcoin friends. Bitcoin's down today too. So for all those people who have told me over and over again that these are such great places to be in times of tumult, we have tumult on the turf and, apparently, we've been let down again. And I'm waiting for the comments to come as to why I'm wrong and somebody to to to stand something up to prove me wrong yet again.
Josh Sheluk:Right. Well, it's important to acknowledge the human impact. It's also important to acknowledge people are feeling pretty bad as investors this morning. Right? Like, there there are people that have lots of money saved up or not a lot of money saved up, whatever it is to you that are feeling pretty beat down this morning, and that's being reflected in the values of their portfolio.
Josh Sheluk:And they're gonna be upset. They're gonna be frustrated. They're going to be fearful, and all of these are emotions that don't really mix well with making smart or prudent financial decisions. And that's the thing that's important to remember as we sit here today. It's very tough to make good financial decisions under periods of stress like we have at the moment.
Colin White:Yeah. And again, that's why we exist professionally. That's our role to talk to clients and put things in context for an individual circumstance because everybody's circumstance is a bit different and everybody's reality is a little bit different. And that's up to a good advisor, a good advisory team to communicate with somebody to give them confidence in their portfolio. So this is where hopefully people are way more interested in what we have to say right now, which is nice.
Colin White:It's nice to be popular. So hopefully we can provide some comfort and we're here. If people need to talk, we have time, we have interest and we have some knowledge and we can help out. So is there anything else other than the disappointment in gold and Bitcoin that you found out today?
Josh Sheluk:I think that the response has been a bit more dramatic than I would have expected. I actually am not surprised to see down two or 3% or whatever it is based off of all the things that were announced. I am surprised to see some businesses down, you know, 20%. And, like, I just don't I'm not quite there yet in thinking that the effect is gonna be that dramatic or that long standing. Exactly.
Josh Sheluk:Permit. Permit's a great word.
Colin White:Yeah. Yeah. Yeah. No. Yeah.
Colin White:It's oh, it opens up the other variable to all these things. What was priced into the market? What were people's expectations going into today? Which is kind of the final piece you need to get right if you're trying to time these things. Like, you have to understand what's priced into the market because the market's gonna react not necessarily to the news.
Colin White:It's gonna react to what it's done to the expectation. So I think that's part of what we're seeing happen. Like the expectations on specific industries have changed far more and which is affecting the overall market. We're gonna stay frosty. We're gonna stay plugged in.
Colin White:We're gonna stay involved, and we're gonna keep trying to put out as much commentary as we think people are interested in. And if anybody has any specific questions, by all means, reach out to us, and we'll do our best to put together a cohesive answer That for the thirty seconds is gonna be current because as we're talking and recording this at, 03:14, the Eastern Daylight Savings Time, what day is this? This is the April. This may be out of date by the time we finished recording it. So, we'll we'll try to keep keep things updated.
Josh Sheluk:Do you wanna leave people with a couple to dos or to not dos?
Colin White:Oh, more than anything, Josh. I was waiting for your list. I knew you had bullet points there. Come on, man. It's a couple of note.
Josh Sheluk:So I I think what's more important is what's not to do, and that's try to make wholesale changes to whatever your investment philosophy or approach is. It's also, in our view, important not to irrationally sell out everything or any large parts of your portfolio that are intended for the long term. If you have long term money, these are the periods of time that test your patience, but are the absolute most important periods of time to stay the course. So that does the not to dos, is not sell out, not do anything rash or make any wholesale changes.
Colin White:Sorry, just but having confidence that you know what comes next. I mean, we were, know, not to do. Exactly. So I mean, you know, it's funny. This is the time, you know, those people are gonna cash out and go to cash.
Colin White:And we're gonna look back and say, hey, look, that person picked exactly the wrong time to do it. Because again, in the moment you think, hey, this is all bad and it's only gonna get worse from here. You know, that kind of confidence is, you know, being overconfident in any direction is always dangerous.
Josh Sheluk:Yeah. And I would say what you want to do at this point, be prepared for a little bit of volatility here. We don't know that this is the worst day or the as bad as it can get. So can it get worse? Sure.
Josh Sheluk:So just be prepared to have to be a little bit more patient and a little bit more uncomfortable than you would normally like to be.
Colin White:Yep. And the other thing you could do is Google fainting goats and go to YouTube and watch all of the videos on fainting goats because it'll put a smile on your face and maybe replace some of the negative emotions you're having with with watching the stock market news today.
Josh Sheluk:I'm I'm going to do that now.
Colin White:Alright, Josh. We'll be Thanks, love. Talking.
Kathryn Toope:Yep. For more information on the subject of today's podcast or any other financial topic, please visit us online at verican.com. That's verecan.com. There's plenty of information there, or you can reach out to someone on the team. Thanks for listening.
Kathryn Toope:Please note, the information provided in this podcast is for general information purposes only. It is not intended as financial investment, legal tax, accounting, or other professional advice. Our discussions are not a solicitation to buy or sell any securities or to make any specific investments. Any decisions based on information contained in this podcast are the sole responsibility of the listener. We strongly advise consulting with a professional financial adviser before making any financial decisions.
Kathryn Toope:Listeners should be aware that investing involves risks and that past performance is not indicative of future results. Bare Naked Money is produced by Verican Capital Management Inc, a licensed portfolio management company in Canada. We operate under the regulatory framework established by the provincial securities commissions in the provinces within which we operate. The views expressed in the podcast are our own and do not necessarily reflect the official policy or position of any regulatory authority. Remember, at Ferrican Capital Management Inc, we focus on aligning our goals with yours, prioritizing integrity and transparency.
Kathryn Toope:For more information about us and our services, please visit our website. Thank you for listening, and let's continue to challenge the norms of the financial services industry together.