Opportunity
F&A Monthly Update | December 2021
Being able to identify, understand, rank, and measure all risk, concurrently, is exceptionally complex. We must be honest and say that governments and individuals worldwide, including ourselves, got and are still getting elements of this wrong. Although the past period is an obvious example for a result that is common throughout history! Humans, on average, are not very good at looking after their own health. I say own health because medical advancements have masked (no pun intended) our complacency. Therein lies our opportunity!
We must acknowledge that when things are going well, we tend to be complacent and reliant on our health to carry us. Reactive to fixing only when it breaks, not so much maintaining throughout. The only time we are shaken out of this stupor is when we have a real setback, one that resets us. Again, our opportunity.
Running wealth management strategies means we spend a good chunk of time discussing money and what it does for us. And the what it does for us is the crux. This tool called money needs to be managed in a way that compliments and empowers us. It makes very little sense to me, for someone to be rich, but without health. To me that is not wealth, that is pride, and ego and insecurity. Yes, money is very useful in the pursuit of health and wealth and happiness (to an extent), so its management is paramount. But money itself is not the most important.
And so it sits with us to understand our habits and our routines. To unpack our priorities. To study how we actually spend our time, energy and health. These are the real currencies. Our real assets. The true engine of our vehicle. Our opportunity!
Being intentional
Going into 2022, these are the areas I am personally reflecting on to try and understand myself and my life choices better:
1. Health
Spiritual
Mental
Emotional
Physical
2. MARRIAGE
Investing love
Our roles
Support needed
Andrea’s health & goals
3. KIDS
Investing love
Roles
Support needed
Kid’s health & goals
4. Business
F&A ongoing investment
Health
Goals
F&A projects
5. General admin
General tasks that require attention / completion.
6. Family & Friends
Investing time & love
Support needed
7. Adventures
Building memories through adventure, fun & holidays
8. Hobbies
Enrichment. Perspective. Challenge.
SMarT Goals
Beyond these categories, I like to set firm/er goals, not listed above. I use the SMarT method:
1. SPECIFIC
I aim to have exact clarity on what it is I want to achieve and I write it down like I have already done it. This is often a tough step.
2. MEASURABLE
Allows me to know what I need to do to reach the specific goal. It is most often, and quite simply, an ordered type checklist, sometimes with many boring items that stand between me and progress. This step often requires lots of homework, and then discipline.
3. Achievable (Less important to me)
The theory tells us to define if we can achieve the goal. I am not overly interested in this for the simple reason that I believe in possible, not impossible.
4. Realistic (Less important to me)
This is less relevant to me and ties into my stance under achievable. My bogey normally rests in overexertion and burnout and so the way I throttle realistic is more through pacing myself. Not always easy.
5. Time
When does the goal need to be completed by? I consider this in relation to my health, energy and balance against other priorities. Not something I have always done and a key and humbling learning of mine. Sometimes we don’t have a huge amount of play on timelines. Sometimes this costs us health, and sometimes we discover just how incredible we can be when we need to. Sometimes spending a bit of health can make the world of difference, and sometimes we can spend too much health. A key risk to manage.
We are all in different places. Maybe 2022 won’t be your best year yet, perhaps however, it could be your rebuild year, or your starting year, or your finishing year. And perhaps, with a bit of luck and some good old elbow grease, perhaps a year to remember! That is my wish for you and for each of us!
Imagine how wonderful life could be if we all gave it our best?
That is my commitment to myself and those I love, and the projects and work I love; that I will give it my best.
Here is to a year of opportunity! Sending love!
Please see Brendan’s piece below on a very positive December month for your portfolios!
December 2021 Update
This month's piece is compiled by Brendan de Jongh, SA Head of Research - PortfolioMetrix.
LOCAL UPDATE
South African (SA) risk assets performed strongly in the last month of the year, led by SA property. Global markets recovered in general as fears around the severity of the Omicron strain eased. SA yields rallied supporting returns in the bond market, although this was overshadowed by equity returns. The only asset class with negative returns for the month was unhedged global bonds which was negatively affected by a slightly stronger rand and developed market yields rising on inflation concerns.
GLOBAL UPDATE
The last month of 2021 saw more risk-on sentiment, despite Omicron cases in the UK and the US rising sharply. Data suggested that although it was more infectious, the symptoms and thus risk of more severe health issues were much lower than previous variants. Global markets viewed this favourably. Inflation continued to push upwards across almost all major economies, still driven by energy prices and supply concerns. This finally prompted many central banks to take action in the form of rate hikes announcing the accelerated tapering of bond buying programmes, including in the US, UK and Europe. Bond markets were slightly surprised by this and as a result, fixed income yields rose over the month and bond prices fell. Follow this link for more detail on events which transpired in the month.