Around the World in 100 Words, October, 2019: Week 43
It’s Election Day and Canadians will get to decide which candidates are heading to Ottawa for another four years and which are heading home. For anyone following the campaign, there hasn’t been much in the way of economic policy from any of the Parties, which is surprising because of all policy issues, this is the one that counts most. I’ve attached an article (HERE) that highlights the challenges that our next government will face, among them slowing of the global economy, a drop in manufacturing output and an lower commodity prices in 2020. Still, there’s no call for a recession, which is good, though one is expected sooner rather than later.
Based on our read of the global economic outlook we remain committed to our investment thesis which can be summarized as follows
*Be globally diversified to reduce the risk of exposure to any one single economy
*Partner with Best-in-Class institutional wealth management companies
*Maintain a sizeable weighting in bonds, both government and corporate
*Include lower-cost investment products in client portfolios
*Build portfolios with investment funds with low correlations to each other
This approach positions clients to participate in the growth in capital markets, without betting the farm to do so. Lower volatility is positively correlated with staying the course when markets fall. Historically, the longer investors hold a well-managed, well-diversified portfolio the better their investment results. We remain committed to delivering on this for you. Always.
Look for a call from my office to set up meetings between now and year-end. It’s a short sprint from Halloween to Christmas
Hope everyone had a great Thanksgiving!