A problem with crows

As we move through this pandemic, anything out of the ordinary can be disturbing. I cam across this news feed and had to double check to make sure it was true, before I posted it here. We have to be very careful about spreading rumours and fear in a time when there is so much fake news going around. I am not from Alberta but I have many cousins who live there so I want to make sure they know what is going on and that they be extra careful.
The Royal Canadian Mounted Police in Alberta found over 2,000 dead crows on Alberta highways recently, and there was concern that they may have died from Avian Flu. (This is what we don't want another dangerous flu.) A Pathologist examined the remains of all the crows, and, to everyone's relief, confirmed the problem was NOT Avian Flu. 
The cause of death appeared to be from vehicular impacts. However, during analysis it was noted that varying colours of paints appeared on the ...bird's beaks and claws. By analysing these paint residues it was found that 98% of the crows had been killed by impact with motorbikes, while only 2% were killed by cars.
The RCMP then hired an Ornithological Behaviourist to determine if there was a cause for the disproportionate percentages of motorbike kills versus car kills. The Ornithological Behaviourist quickly concluded that when crows eat road kill, they always have a look-out crow to warn of danger. They discovered that while all the lookout crows could shout "Cah", not a single one could shout "bike"

Don’t let financial jargon throw you off your game

Investing is a scary prospect, and most of us don’t invest in the stock market or if we do, we invest poorly. Market upturns, and market downturns leave many investors hopeless for various reasons. If we need our money to grow to help us when we retire, and because of COVID or market uncertainty our portfolio values (which is the amount of money we have in our investments) have declined, then we find that income levels which rely on the value of our portfolio may have also declined. This leaves us confused as to what to do about it. So, we educate ourselves and find that we are bombarded with tons of information from various sources. Much of the information and explanations comes from industry experts using terms we have never heard before. My question is how should you know what to do if you don’t even understand what the problem is in the first place?

While it is impossible to control what happens in markets, you may be able to make sense of events by gaining a better understanding of relevant investment terms.

In the hope of assisting investors to make better sense of the myriad of terms being used, we have taken the following from Debra Slabber, Business Development Manager of Morningstar Investment Management South Africa, and we have highlighted a few financial terms that are often used during market downturns.

Recession

The term “recession” in its strictest definition means that an economy experiences two consecutive quarters of negative economic growth because of a significant decline in general economic activity.

During a recession, businesses experience less demand (i.e. they sell fewer products and/or services). These businesses then usually react to this by cutting costs and sometimes laying off staff (retrenched) to protect the bottom line and profitability of the business. When staff are retrenched, this leads to higher unemployment rates.

“Generally, a recession does not last as long as an expansion does. Historically, the average recession (globally) lasted 15 months, compared to the average expansion that lasted 48 months.

Causes of a recession can vary. While COVID-19 has certainly put a drag on the global economy, it remains to be seen whether it will have lasting effects on economic output. It is important to realise that recessions are a normal part of an economic cycle and every person will experience a few in their lifetime,” says Slabber.

Bear Market

A bear market is when a market experiences a decline of at least 20%, usually over a two-month period or longer. Bear markets often arise from negative investor sentiment because the economy is slowing or due to the expectation that it will slow down. Signs of a slowing economy may include a decrease in productivity, a rise in unemployment, a decrease in company profits and lower disposable income. When someone talks about having a “bearish” view, it means they have a pessimistic outlook.

Slabber points out that while a recession and a bear market often go hand in hand they are associated with different issues. The distinction between a bear market and a recession is that a recession is measured by a decline in economic output (also known as gross domestic product or GDP), whereas a bear market is identified by a decline in stock market values in excess of 20% over a prolonged period as a result of negative investor sentiment.

Some other terms that you might come across when reading up on market downturns include:

• A pullback, which is a short-term price decline within a longer-term trend of price increases.

• A correction, which is when an asset's price falls by at least 10%.

• A market crash, which is a drastic market decline over a short period.

• A depression, which is a long-term recession that can last multiple years.

Volatility

Markets have been highly volatile of late, meaning equity prices have bounced up and down rather severely from one day to the next. Volatility marks how much an investment's price rises or falls. If an investment's price changes more dramatically and/or more often, it's considered more volatile.

Price volatility is usually expressed in terms of standard deviation, or how much an investment's price has fluctuated around its average price over a certain period. A higher standard deviation implies an investment's price is more volatile.

“Investments with more uncertain outlooks, like equities, are typically more volatile,” says Slabber. “That is because equity returns are based on a company’s profitability, which is difficult to predict. In uncertain market environments, like the current one, investors tend to be especially pessimistic about how businesses will perform, which can result in steep market declines.”

So, why would you want to invest in a more volatile investment? Because you are likely to be rewarded with a higher return over the long-term.

Risk

Volatility and risk are terms often used interchangeably, although they are very different. Risk should be defined as “permanent capital loss” or the chance that you won’t meet your financial goal.

For a retiree, one risk might be not taking on enough risk. By reducing your exposure to more volatile or "risky" assets such as equities, you could significantly limit your portfolio's potential return over the long run. By remaining in cash for prolonged periods of time you run the risk of increasing your tax bill significantly (due to interest earned being fully taxable) or losing purchasing power due to the eroding effects of inflation.

Slabber explains that even though a more equity orientated portfolio will experience more volatility in environments like what we are facing now, your asset allocation might not be overly risky. “If you're far away from retirement, you have time to ride out your portfolio's short-term volatility and take advantage of longer-term gains that equity markets will generate,” she says.

Loss Aversion

Loss aversion is the theory that investors feel more pain when they lose a certain amount of money than they feel pleasure when they gain an equal sum. In other words, you would feel more discomfort from losing R1,000 than pleasure from gaining R1,000.

Time and time again it has been proven that selling your investments in a downturn and giving up on your long-term financial plan is detrimental to a successful investment outcome.

So where does that leave investors?

Things might not be so hopeless after all.

“Recessions, bear markets, drawdowns and volatility are all part of the world of investing and building long-term wealth. What matters most is our actions and habits during this time. These can either hurt you or help you, but most importantly always remember that ‘this too shall pass’,” concludes Slabber

World Alzheimer's Day

World Alzheimer's Day takes place on 21 September and is part of World Alzheimer's Month. This year, they are talking about dementia – and urging everyone to join in the conversation by becoming Dementia Friends.

World Alzheimer’s Day takes place every year on 21 September. It is the focus of World Alzheimer's Month during the month of September.

Globally, dementia is one of the biggest challenges we face, with nearly 50 million people living with dementia worldwide. To tackle this global dementia challenge, we need to work together, and to collaborate and share best practices with one another.

Therefore, Alzheimer's Society has committed to work with partners on global research and campaigning, as well as sharing our learning, best practice, and experience with one another.

This World Alzheimer's Month, we're asking you to break the silence around dementia. You can join our Dementia Friends movement, or help by sharing the link with friends, family, and colleagues.

Alzheimer’s is a mystifying disease that can strike older adults 65 and up, and even begin in adults as young as 50. Every September 21, World Alzheimer’s Day, recognized globally, aims to raise awareness of the disease, and challenge the common stigma that surrounds Alzheimer-related dementia. Studies have shown that on average, 2 out of every 3 people worldwide have little to no understanding of Alzheimer’s.

Here are a few interesting facts and tidbits related to Alzheimer’s.

·       Currently, There is No Cure for Alzheimer’s.

·       More than 100 years after the disease was discovered in 1906 by Dr. Alois Alzheimer, the origin of Alzheimer’s is still largely a mystery, although countless studies have been done and there are varied explanations. What we know is that there is no cure or way to stop its progression. However, there are ways to treat the symptoms.

·       Growing Older Doesn’t Mean Dementia is Given.

·       There’s a perception that as we age, losing our memory and mental faculties is a given.

·       Our brains and bodies age, and therefore we lose our sharpness. While the mind of a centenarian won’t be the same as a 20-year-old or even a 50-year-old, there’s nothing that suggests that older adults are destined to be plagued with Alzheimer’s or any other form of dementia as they age.

·       Eating and Exercise Habits May Have Some Effect on Alzheimer’s.

·       Several years ago, Maria Shriver, who has become the de facto spokesperson for Alzheimer’s reported on an experimental program that has shown to reverse the early onset of the disease. Called the Bredesen Program and developed by a California neurologist, it consists of consuming a Mediterranean diet high in fat and low in carbs, doing regular cardio-based workouts, fasting after dinner, getting proper sleep, taking supplements and engaging in brain training exercises. Dr. Bredesen claims that 9 out of 10 of his patients have improved cognitive functioning after participating in his program, but that it only works for those with early-onset symptoms.

                  §  Women are at a Higher Risk for Alzheimer’s Than Men.

·       Women, are more likely to develop Alzheimer’s—two out of three of the 5.5 million Americans who have been diagnosed with Alzheimer’s are female. No one is exactly sure why women tend to develop it more than men, but some studies suggest that education and professional work opportunities, or lack thereof, could be a contributing factor. However, the closing gap in educational and occupational between men and women may also mean that the gender gap in Alzheimer’s diagnoses are also getting smaller

The Alzheimer’s Association is a good source to read up on what scientific studies have been done to date. You and your family members can help be part of the solution by participating in a study, as scientists always need good candidates (both cognitive and non-cognitive impaired). Sign up through the Alzheimer’s Prevention Registry

A bedtime Story

 Bedtime story time Thanks to BJ for the story

A woman joins a country club and when she hears the guys talking about their golf round:

She says. "I played on my college's golf team.
I was pretty good. Mind if I join you next week?"

No one wants to say 'yes', but they're on the spot…

Finally, one man says. "Okay, but we start at 6:30 a.m."

He figures the early tee-time will discourage her.

The woman says this may be a problem and asks if she can be up to 15 minutes late.

They roll their eyes, but say. "Okay."

She's there at 6:30 am. sharp and beats all of them with an eye-opening 2-under par round.

She's fun and pleasant and the guys are impressed.

They congratulate her and invite her back the next week.

She smiles, and says. "I'll be there at 6:30, or 6:45."

The next week she again shows up at 6:30 sharp.

Only this time, she plays left-handed.

The three guys are incredulous as she still beats them with an even par round, despite playing with her off-hand.

They're totally amazed. They can't figure her out. She's very pleasant and a gracious winner.

They invite her back again, but each man harbors a burning desire to beat her.

The third week, she's 15 minutes late, which irritates the guys.

This week she plays right-handed and narrowly beats all three of them.

The men grumble that her late arrival is petty gamesmanship on her part.

However, she's so charming and complimentary of their strong play, they can't hold a grudge.

This woman is a riddle no one can figure out.

They have a couple of beers in the Clubhouse and finally, one of the men asks her. "How do you decide if you're going to golf right-handed or left-handed?"

The lady blushes, and grins. "When my dad taught me to play golf, I learned that I was ambidextrous." She replies. "I like to switch back and forth. When I got married after college, I discovered my husband always sleeps in the nude. From then on, I developed a silly habit. Right before I leave in the morning for golf practice, I pull the covers off him. If his willie points to the right, I golf right-handed; if it points to the left, I golf left-handed."

The guys think this is hysterical.

Astonished at this bizarre information, one of the guys says. "What if it's pointing straight up?"

She says. "That's why I was fifteen minutes late