So far in 2019 investors have enjoyed very strong market returns, but what lies ahead?
I believe this is a good time to ensure we have constructed resilient portfolios – portfolios that reduce risk through enhanced diversification and can better protect your capital in the event of a downturn.
Introducing Alternative Strategies into your portfolio can better prepare for periods when the markets are more challenging.
Alternative Strategies are designed to generate attractive long-term absolute returns, largely independent of the broader market direction. They can reduce the overall portfolio risk through low volatility and low correlation to equity and fixed income benchmarks.
The US expansion is now officially the longest on record
While there is plenty to fret about when taking in the day’s news, the markets now seem accustomed to the way the story and threats ultimately unfold. I believe the current expansion will continue its upward course more slowly than other expansions but with a positive sign attached to it. This year’s current pace of growth is most likely unsustainable.
Slower growth puts planned interest rate hikes on hold
With the economy continuing to grow but at a slower pace combined with benign inflation, the Bank of Canada recently announced they will maintain the overnight rate at 1.75%. As a result, the bond market is pricing in no rate hikes for the rest of this year and a possible rate cut in 2020. The same message comes from the U.S. Federal Reserve and the European Central Bank. Rising interest rates were a major concern for equity markets that have for now been put on the back burner.
The Mailey Rogers Group invite you to an informative discussion on the planning that can assist in the efficient transfer of wealth to the next generation and the people, or charities, you hold dear.
Monique Trépanier, B.A. (Hon.), LL.B
Estate and Trust Consultant
The Bank of Nova Scotia Trust Company
Monique is responsible for providing estate planning guidance to Estate and Trust clients. Prior to joining Scotia Wealth Management, she practiced law for several years at a large firm in Vancouver, specializing in the areas of wills and estates law, charity law and corporate commercial law. Monique is focused on helping affluent clients build, preserve and transfer their wealth. She creates integrated wealth management solutions that incorporate investment management, estate and trust services and private banking.