A Proven Track Record | |
Be defensive in 1998 – have a balanced portfolio | |
Long term reward This does not mean never changing your individual asset mix. What it does mean is you should concentrate on where you are heading and not where you’ve been. Make changes based on fundamentals: do not react in response to market sentiment. Bonds will outperform equities, equities will outperform bonds and sometimes cash will be king, but overall a balanced portfolio will reward the investor in the long term. | |
Southeast Asia faces long and painful restructuring and a battered outlook for growth. Japan’s new recovery plan is a step in the right direction but it will not do much for the economy in the short term. In the US the fundamentals remain excellent with unemployment and inflation both near 30 year lows. But expect the trade deficit to balloon. The Canadian authorities continue to smile, the coming US slowdown and recent rate hikes set the stage for slower growth this year. For now I continue to recommend dividend, balanced and now add bond funds to your portfolio. Inflation will continue to be low, in fact there are whispers of deflation out there. This is bad news for gold. But with all these mines closing, supply may change this later in the year. RRSP loans For those of you purchasing RRSP loans this year, our cut off date is the 24th of February, so if you’re thinking about purchasing RRSP’s come in early.
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No one can predict every move that the markets are going to make. And market timing should not be your strategy for long-term successful investment. Building a diversified portfolio and sticking with it is the foundation to achieving your investment goals.