By Ian Ardill
There is a lot of anxiety out there. It is very real.
A lot of jitters. Feelings of powerlessness. Mostly about interest rates, inflation and the markets going up and down, but mostly down.
Are interest rates going to level out – or skyrocket? What about inflation? Last year at this time, the Bank of Canada was projecting inflation just shy of 3% for 2021…and it ended up being closer to 5%. At this moment, the global banking system is scrambling, trying to figure out how to get inflation under control. And what is going to happen in the markets?
It is my personal opinion that we are heading toward recession in 2023.
Here’s why I nonetheless have an attitude of gratitude: because I am going to weather the storm. Because I am invested in a different array of asset classes that behave fundamentally different under circumstances like the current ones.
Ever felt like your finances were out of your control? At one point or another, we all have. It’s a terrible feeling – and one that you never have to feel again.
Here’s how: Be truly diversified.
Diversification (the D-word) gets thrown around a lot – most of the time to describe portfolios that are not truly diversified!
Many people think they are diversified if they have an appropriate mixture of equities and bonds. Other people think they are diversified if they have equity and bond exposure to international markets.
None of those folks, in my view, are truly diversified.
Depending on a client profile, diversification could mean having an appropriate mix of these things:
• publicly traded securities (PTS)
• private capital
• cash value life insurance (CVLI)
Of that list, two items are the most often overlooked. Care to guess which ones?
If you guessed private capital and cash value life insurance, give yourself a pat on the back, because you are absolutely right.
RIGHT NOW, THERE ARE TWO BIG OPPORTUNITIES
To get into cash value life insurance, and to get into the private capital markets.
Right now, do you own cash value life insurance? Yes? Well, further congratulations are due, because amid all the volatility in the public markets, you have not lost a single penny on your life insurance. Not one. The product is performing exactly the way it is supposed to: it is guaranteed never to go down – only up. Quite simply, there is no investment vehicle more stable.
The private markets don’t have the same guarantees as stated above, yet they may behave differently, in an uncertain market like we have today. As with cash value life insurance, we have had a very strong first Q of the year, and want to thank you for your trust in this space.
Want to talk about it? Let’s have a call – the sooner the better!
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
