What's the forecast?

Feb 18, 2020 | Elyse Clements


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So here we are once again working our way through one of our familiar Canadian winters. The first month of 2020 is behind us, and much like weather forecasting, we aim to formulate a view of what investment markets may bring our way. We have been positive about our investment themes for the past many years, while also being very clear that market volatility is without question part of the process of longer term investment plans. We are very gratified that you, our clients have participated in strong returns from our portfolios, and of course we remain committed to very carefully considered strategies as we navigate investment markets going forward.

 

So what's next?

 

We continue to hold our view that the economy has entered the later stage of the economic expansion, a view that has become the consensus. But late-cycle phases can last quite some time, so where do we sit?

 

We still see moderate global growth on the horizon. Easing tensions, and formalization of U.S. China trade should alleviate some business uncertainty. Financial stimulus during the past year continues filtering through the economy and should help foster mild growth in the coming quarters. Recession fears have largely receded for now. Of course the possibility that something else ( Coronavirus) shows up to upset the markets is always a possibility.

 

We are of course always mindful of risks. Political tensions throughout the world, scares from current events like Coronavirus, or economic late cycle volatility can all play a part in upsetting markets for varying time periods. We have seen all of these in action recently, and they represent typical events that shape investment markets. The current fears about Coronavirus have unsettled the markets, and until there is clarity on the final impact of the virus we will continue to see the effect of uncertainty.

While we continue to be constructive in our view of the markets (assuming Corona virus issues are resolved), we do think it is realistic for investors to expect more normalized returns going forward.

 

As important as investment market successes are, and we are highly focused on those efforts, we want to remind clients that we are here in an equally important capacity as a coordinator to facilitate their overall financial well-being.

Whenever you are faced with decisions regarding your families financial goals/wishes, we are here to help clarify and plan for a carefully considered solution.

We are wholly committed to be your trusted advisor and helping you develop a lifelong financial strategy is a key part of what we do.