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  • Colin Lea, BBus (Ag Comm), BA, GDFP, CFP®

Market volatility is normal & Voodoo Medics

Updated: Aug 7

  • Market volatility is normal - it's just been largely missing for the better part of a decade.

  • What six days in an Audi SQ5 taught me about value for money and great customer service.

  • Hearts and Minds Investments - an IPO with a philanthropic socially responsible investment twist.

  • Voodoo Medics - Unconventional medicine, unconventional warfare, everyday heros.

Global Insights

The last couple of months has seen an evident return of market volatility, and what has become evident around the corrections of this week, is that many people have been notably concerned and uncomfortable with this volatility.

Why? Because market volatility while normal - has largely been missing for the better part of a decade. And ignoring much of the sensationalist media reporting (because good news doesn't sell) is probably worthwhile, especially for investors who have a long term view to returns on their investment.

There is nothing wrong with a prudent approach when markets are continuing to tip all time highs, and market corrections are a normal measure of reverting overvalued and over bought assets back to their true intrinsic value. Rather than reading what poses as financial journalism these days in the mainstream media, I take a perspective of historic returns over the longer term (and most people have forgotten what true long term perspectives are), and keep in mind my long term goals for my portfolios.

The optimist also notes that market corrections provide buying opportunities for assets when all assets reset their pricing regardless of their intrinsic value.

Six Days in an Audi

On our last trip to Melbourne for a holiday North through Victoria and New South Wales, and we had booked an Audi Q2 for the road leg of the journey.

After a delay in getting our bags, we fronted to the Hertz Gold bays at Melbourne Airport, and sitting in our car space, well... it wasn't an Audi Q2. When we queried the car w the staff, they noted an error had been made and automatically applied an upgrade and gave us an Audi Q5! So we thanked them, loaded up our bags and were about to drive off, when the engine management system advised us there was a fault and we should contact the workshops... Again, Hertz Gold staff to the rescue and upgrade number two - to an Audi SQ5 - and a kind warning that it goes fast... VERY FAST !!

At the end of our six days with the car we learnt a couple of valuable lessons. One, when you offer a premium service, customer service matters, and hands off to Hertz Gold for delivering in spades. And secondly, the sports suspension pack, while suited to Melbourne roads - is not really the everyday suspension needed for country roads (a rally pack may have been more appropriate). But we had a blast and loved the car.

Socially Minded

If you are looking for a socially and ethically focused investment opportunity, you might want to check out Hearts and Minds Investments Limited (HM1). I decided to invest in this after listening to Chris Cuffe speak four years ago on philanthropic investing, and liked what he had to say.

HM1’s Investment Strategy is to create a concentrated portfolio of long only positions in approximately 25 Securities based on the highest conviction ideas from two groups of Fund Managers:

  • Conference Fund Managers: 40% of the portfolio will be held in approximately 10 Securities based on the annual recommendations of Fund Managers who present at the Sohn Hearts and Minds Investment Leaders Conference.

  • Core Fund Managers: 60% of the portfolio will be held in approximately 15 securities based on the quarterly recommendations of five leading Fund Managers selected by the Investment Committee.

What is notable about this investment though is that the Company will also seek to provide financial funding to leading Australian medical research organisations in order to support the development of new medicine and drive a new generation of medical research in Australia.

In order to support its Charitable Goal, the Company will forego any investment fees and instead donate a Donation Amount to the Designated Charities every six months.

The list of Designated Charities will include The Victor Chang Cardiac Research Institute (Victor Chang Institute) together with the Black Dog Institute; The Brain and Mind Centre, Sydney University; The Charlie Teo Foundation; The Children’s Hospital at Westmead – Pediatric Intensive Care Unit, Research; The Florey Institute of Neuroscience & Mental Health; The Centre of Human Psychopharmacology, Swinburne University; Multiple Sclerosis Research Australia Limited; Orygen and Royal Prince Alfred Hospital, research. These Designated Charities have been nominated by the Core Fund Managers and the Board.

The Company, Fund Managers and a number of the key Service Providers have agreed to forego fees that they would normally charge in relation to services provided to the Company. The members of the Board and the Investment Committee have also agreed to waive any right to be paid director and committee fees.

Certainly something different and worth considering further -and obviously do your own due diligence.

Something Personal - Voodoo Medics

There's been a great series of articles run by the Daily Telegraph, titled 'Voodoo Medics', unconventional medicine - unconventional warfare... if you get a chance (search for links on your social media and on the Telegraph), take the time to read these and listen to remarkable tales of human achievement by everyday soldiers at the peak of their careers. To listen, is to understand, and to better comprehend the world of our military veteran community. We owe them a debt that many can't comprehend, but those who have been at the coalface, do...

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Cheers, Col

#ProfessionalFinancialAdvice #Veterans #Philanthropic


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