Guides and Goats

A via ferrata is a set of iron rungs on a mountainside that allows people to pass through areas that would otherwise only be accessible to experienced rock climbers. I learned about via ferratas while hiking through Canada’s “mountain goat territory,” as our guide affectionately referred to the area. As we progressed through a so-called moderate hike, we arrived at the foot of a sheer mountain face. I slowly realized that our path took us straight up the face of the mountain rather than around it. Upon closer inspection, you could see iron rungs going up as far as the eye could see. Our guide explained the concept of a via ferrata, and we proceeded to climb a mountain that looked impossible to summit.

There was no question about it – I would not have taken the via ferrata path without our mountain guide. The via ferrata made the mountains accessible, but it did not eliminate the uncertainty. There was the uncertainty that the mountain had eroded over time, that the equipment wasn’t properly secured, or that we could experience unexpected weather or rock slides. However, with the guide watching over me, I felt fully capable of finishing the climb despite the mountain’s uncertainty and extremities.

This image of a mountain guide is an excellent illustration of the value of a financial advisor. Of course, I realize comparing my occupation to a mountain guide is a stretch, but bear with me.

Via ferratas provide access to areas that would otherwise be unseen by all but the most experienced climbers. Modern technology does something similar for investing. Long gone are the days when investing was only for the ultra-wealthy. Also long gone are the days when you had an “investment guy” who would call you up and tell you what to buy or sell because they had access to information that you did not as a non-investment professional. Now, anyone can invest through an app and research online. Incredibly, everyone has easy access to all the investments and research you could ever want. Still, just as I needed a guide on the via ferrata, there is tremendous value in partnering with a financial advisor for your finances.

The mountain guides are the experts that help you do what you want to do and provide you with peace of mind despite the uncertainty that comes with climbing. In the truest sense, what we do as financial advisors is help you do what you want to do financially and give you peace of mind despite the uncertainty that comes with life and markets.

Sometimes the uncertainty surrounds a transition in your life, and other times the uncertainty stems from a change in the world around you. Right now, there is no shortage of uncertainty in the headlines.

The above illustration shows the growth of one dollar invested in the world equity markets in 1970. One may think that the story here is that the dollar grew to $98 by 2022, but I believe the real story is that the dollar grew despite all of the events along the way. From wars, to natural disasters, to COVID, each event was unique, unexpected, and surrounded by some level of fear. Yet, despite those unique circumstances, companies continued to make money, and dollars invested grew. At the initial outbreak of COVID, we heard questions along the lines of, “This is unlike anything we’ve ever seen before. Should we move to cash?” As Russia invaded Ukraine, we heard the same question. It was true each time. These recent events are indeed unlike anything we’ve ever seen. And the next unexpected event that causes market volatility will be the same. We do not know what the next event on this illustration will be, but we do believe that innovation and growth will persevere as they always have.

Uncertainty comes hand in hand with investing, climbing, and, let’s be honest – living. In Canada’s mountain goat territory, I was rewarded for facing the uncertainty with the view pictured below. Outside of my family and our guide, mountain goats were the only life in sight. There was something to be said for that. I took it as a life motto to “go where the mountain goats go”. Yes, this means jumping at every opportunity to go to beautiful remote areas, but the deeper meaning is “dream big .” It means I want to live a life that I will be proud of and never allow fear to keep me from mountaintop moments. It means never hesitating to work with guides through the tough spots, deal with uncertainty, or get to places I wouldn’t venture to otherwise. Ultimately, it means persevering.