By Ian Ardill
Happy New Year! It’s time to reinvigorate the conversations we are having with you, our clients, and give even more attention to ensuring we are on top of what might need tweaking in your world.
With that in mind, please watch the above video. And here, in brief, are three key points I would like to make at the outset of 2024:
1
The markets rallied in 2023, and we anticipate they will again perform well this year.
Markets are a leading indicator of the economy, and so we are not surprised to see that long-term bonds and borrowing rates are already coming down and there is considerable consensus that the Bank of Canada will continue to reduce interest rates this year, which bodes well for the economy.
In this environment, investors who have most or all of their money in one basket (in GICs, for example) are, on balance, less likely to experience returns as positive as they would by taking a more measured, balanced approach.
In other words, stay diversified. More on that just below.
2
Avoid a mentality of chasing “winners.” As they ultimately did last year, we expect the markets to perform relatively strongly this year. When people see a strong market – in equities, let’s say – they tend to want to invest in companies whose stock price has risen substantially. The problem with that mentality is that if that company proceeds to have a less positive year, the winner-chasing mentality is to sell it – resulting in the investor committing the classic error of buying high and selling low.
Referring back to point #1 above, the recommended approach is to be balanced and measured, with a mix of assets that are private and public, equities and fixed income.
3
Everyone’s circumstances, including yours, are unique. We are here to walk with you throughout your financial life. Just reach out to us.
On behalf of the entire team here at Ardill Group, I am wishing the happiest year to you and yours!
PS Here is an article from the Fraser Institute that makes for an interesting read: 24 facts for 2024—Canadians should understand impact of government policies.
Ian Ardill, B.A., M.T.S.
Private Wealth Advisor
CEO, Ardill Group
Direct: 1 905 717 5698
Office: 1 905 907 7000
ian@ardillgroup.com
