Conference Call with Stephen MacInnes of Inhance Investment Management
Stephen Whipp Financial: Client Conference Call
Wednesday, October 8th, 2008 5 – 6 pm
Stephen Whipp, Certified Financial Planner, Managing Director of Responsible Asset Management at Wolverton Securities Ltd.
Steve MacInnes, CFA, Chief Investment Officer, Inhance Investment Management Inc.
In response to an invitation from Inhance Investment Management, Stephen Whipp and several clients took the opportunity to hear from an expert about the current stock market crisis. There was a lively discussion, and people generally seemed to feel more informed and less panicked afterwards. There was no promotion of Inhance products or any specific investment advice provided by either Stephen Whipp or Steve MacInnes. Key points are summarized below.
- People are feeling shocked and fearful.
- The present crisis is unprecedented.
- The crisis is a credit crisis, not a stock crisis.
- Credit is the oil for the engine of the economy.
- It will be solved by injections of oil (credit) into the engine (economy) by governments.
- There is great value represented in stocks and mutual funds.
- The Canadian economy is sound.
- Don’t panic – stay invested.
- Take advice from your investment advisor and fund managers, not the news media!
Questions and Answers
How did we get here?
- Fear-based reaction due to unexpected situation and lack of trust and confidence.
- Poor mortgage practices by American investment banks.
- Not caused by problems with Canadian banks or mortgages.
How do we get out of this crisis?
- Domestic and foreign government actions to increase liquidity.
- Some foreign governments will socialize part of the financial system.
- Will cost less than not taking action.
- Started with lowering of interest rates by central banks – will see more of that.
Why should I stay invested?
- The credit problem will get solved – constructive actions being taken by governments.
- The people involved know what they are doing.
- The issue was never with the type of investments our clients are in.
- There will be good buying opportunities.
- Fundamentals of the economy are sound.
- Oil and gas prices will keep investment in alternative energy companies attractive.
- Markets always bounce back and you will lose more by selling when they are low.
- Ethical investments are by nature high quality – they have been screened for corporate governance and risk management performance and were not involved in the poor practices that caused the credit problems.
- Panic selling is not an investment strategy.
- Choppy, volatile market is probably the worst we will see.
This publication is solely the work of Stephen Whipp for the private information of his clients. Although the author is a Wolverton Securities Ltd. Advisor, he is not a financial analyst at Wolverton Securities Ltd. (“Wolverton Securities”). This is not an official publication of Wolverton Securities. The views, opinions and recommendations are those of the author alone and they may not necessarily be those of Wolverton Securities. This publication is not an offer to sell or a solicitation of an offer to buy any securities. This publication is not meant to provide legal, accounting or account advice. As each situation is different, you should seek advice based on your specific circumstances. Please call to arrange for an appointment. The information contained herein was obtained from sources believed to be reliable; however, no representation or warranty, express or implied, is made by the writer, Wolverton Securities or any other person as to its accuracy, completeness or correctness.