So far 2019 is starting off strong in the stock market, which is a nice recovery from the end of 2018. At the close on Friday, Feb 22, the markets are up:TSX (Canadian stocks) %
- TSX (Canadian stocks) 11.8%
- S&P 500 (US Stocks) 11.4% (although 7.3% in Canadian dollars)
The values are considerably higher now then at the end of December. How’s it looking for the rest of the year?
I spend a lot of time meeting with economists, chief investment officers and fund managers from various companies to piece together what I think is the best investment strategy going forward. Here are some pics below of me with the experts.
Manulife defined the theme for 2019 as Travel with Caution not Fear
2019 is expected to continue to have volatility, which is normal. And globally investments are expected to be positive. There may be more opportunity for gains outside of the US since stocks are cheaper in Europe and Asia compared to the US. Economic growth is continuing and it is now classified as synchronized economic slower growth. Interest rate hikes are slowing and maybe getting close to their high for this cycle. Longer term economic growth will be slower because of demographics.
How do we manage our investments?
We plan for market ups and downs by:
- Being diversified in different assets classes including real estate, mortgages, and hedge funds etc. that don’t necessarily move in the same direction as stocks.
- Owning company/investments around the world including Canada, US and international not just in one area
- We focus on companies that pay and increase their dividends.
- We put some of our investments into fixed income (bonds). Last year was tough for bonds as well, and this year is expected to be better. One of the reasons for using bonds is to protect our capital when the markets go down.
- The managers we use have lots of experience and take advantage of the dips to buy companies (through their stocks) at lower prices.
- We continue to buy regularly through dollar cost averaging
And most important we are working towards your goals through financial plans that factor in market and other life changes to keep you moving in the right direction.