The Philosophy of Change

Change is fundamental, touching every aspect of our lives. From small shifts in our daily routines to significant changes in the global economy, our ability to adapt and embrace these changes can lead to better outcomes and a richer life. In this article, we explore the philosophy of change and how embracing it can positively impact our personal lives and financial futures. 

Embracing Change in Daily Life 

Life is a continuous journey of change. From the moment we wake up in the morning to the time we go to bed at night, we encounter numerous small and significant changes. These changes can be as simple as trying a new breakfast or as stressful as moving to a new city. While some of us may view change with fear and apprehension, it is important to recognize that it often brings growth, learning, and new opportunities. 

Change encourages us to step out of our comfort zones, improving our resilience and adaptability. For example, consider the technological advancements that have transformed how we work and communicate. Adopting new technologies, such as Zoom and MS Teams video conferencing has allowed us to stay connected and productive, even in recent challenging times.  

I think, more importantly, personal growth often stems from embracing change. Trying new hobbies, meeting new people, exploring new places and accepting new responsibilities can lead to enriching experiences and a broader perspective on life. One of Alitis’ core values is “Innovation:  We encourage critical and creative thinking to reimagine solutions, leverage technology, and make continuous improvements that best serve our clients, team and partners.” By welcoming change, we open ourselves up to a world of possibilities and continuous self-improvement. For us at Alitis, we hope to continually improve client experiences.  

The Changing Investment Landscape 

Periodic changes happen in our personal lives, but it is constant within the investment world. The financial markets are dynamic, influenced by various factors, including technological innovations, geopolitical events, and economic events just to name a few. As investment and wealth managers, understanding and adapting to these changes is important for achieving long-term financial success. 

Technological Advancements 

Technological advancements have significantly altered the investment landscape. The rise of fintech, blockchain technology, and artificial intelligence has changed how we invest, offering more efficient, transparent, and accessible investment options.  

At Alitis, we have our own data analysis, storage and reporting system “HUGO”. Future advancements in our in-house technology using data analytics should enable us to make more informed decisions. By leveraging big data and machine learning, we hope to identify trends, assess risks, and optimize your portfolios more effectively. 

Geopolitical and Economic Shifts 

Geopolitical events and economic policies can also drive changes in the investment landscape. Trade agreements or disagreements (tariffs), regulatory changes, and political instability can impact market conditions and offer investment opportunities. For instance, shifts in trade policies can influence global supply chains, affecting the performance of various countries, industries, and sectors. 

In recent years, the global economy has experienced unprecedented challenges, such as the COVID-19 pandemic. This event underscored the importance of agility and adaptability in investment strategies. Those who can adjust their portfolios to reflect changing market conditions, or add asset classes to diversify away risk, were better positioned to navigate the volatility and uncertainty. 

Economic Cycles

The global economy operates in cycles, characterized by periods of expansion and contraction. Recognizing these economic cycles and their phases can guide investment strategies. For instance, during periods of economic expansion, equity markets tend to perform well, while defensive assets like bonds may be more favorable during economic downturns. 

Monetary and Fiscal Policies 

Monetary and fiscal policies implemented by governments and central banks can also influence investment outcomes. We have all seen how interest rate changes, inflation rates, and government spending programs can impact our budgets and these changes also impact various asset classes in different ways. Portfolio managers and investors who stay informed about these policies and their potential implications can better position their portfolios to capitalize on opportunities and mitigate risks. 

Globalization and Demographic Trends 

Globalization and demographic trends are other critical factors driving macroeconomic changes. The interconnectedness of global markets means that events in one region can have ripple effects worldwide. Additionally, demographic shifts, such as aging populations, urbanization and immigration flows, can create new investment opportunities and challenges. 

For example, an aging population may increase demand for healthcare services and retirement planning products, presenting growth opportunities in these sectors. Whereas urbanization and immigration trends can drive infrastructure development and real estate investments. We have seen this play out recently in Canada.

Conclusion

Change is an inevitable part of life and the financial world. By embracing change, we can unlock new opportunities, empower personal growth, and achieve better financial outcomes. Whether it is adapting to technological advancements, navigating geopolitical shifts, or responding to macroeconomic changes, our ability to remain flexible and proactive is key to thriving in an ever-evolving world. 

At Alitis Investment Counsel, we are not afraid of change and understand the importance of embracing it to stay ahead of the curve. Our investment pools are designed to adapt to changing market conditions, ensuring that our clients are well-positioned to achieve their financial goals. As we navigate the future together, let’s embrace the philosophy of change and harness its potential for a better life and financial future. 

Thank you for your continued support & trust in Alitis.  

Sincerely

Todd Blaseckie, CFA, CFP®
CEO & Portfolio Manager
Alitis Investment Counsel Inc.