Greetings and happy holiday season… isn’t it nice to have been through a few weeks of not-quite-so-crazy-all-the-time news and events? We’re still far from normal, but we’ve been getting some good information and insights that are pointing to what we expect to be a better year ahead. In particular we are getting positive outlooks for investment markets in 2021. As you most likely already know, we tend to take a longer-term approach to our investment portfolios but the adjustments that we make along the way are guided by two main factors: how we feel about the markets and how you feel about your investments. The two articles below touch on these factors.
BRIAN BELSKI, SPECIAL TO THE GLOBE AND MAIL, Published december 9, 2020
This outlook for investing in 2021 is from BMO Capital Market’s chief investment strategist. He’s a very straight-shooter and while he clearly recognizes that next year won’t be smooth sailing, there are many factors supporting the expectation of continued positive returns from investments markets. He highlights Canadian equities as an attractive segment in 2021. We agree with this and you will find support for this in many of your portfolios; get in touch if you’d like to discuss your Canadian equity exposure. Here’s a nice summary of what Mr. Belski writes: “Even with recent positive vaccine and treatment developments, the global pandemic and its unprecedented impact are unlikely to fade in coming months. As such, the massive fiscal and monetary response in the United States and around the world (also unprecedented) will likely remain in place for the foreseeable future. Such environments have historically supported continued stock market gains and we see no reason why 2021 will be any different.”
BRENDA BOUW, SPECIAL TO THE GLOBE AND MAIL, PUBLISHED NOVEMBER 23, 2020
This article from Brenda Bouw touches on some recent research about how investment clients have viewed the value of their advisors, particularly during this chaotic year. One of the referenced studies from Russell Investments found that advisors who provide comprehensive wealth management services (which we do, in collaboration with our trusted partners) deliver higher results over time to their clients. We hope that this article is like ‘preaching to the choir”, however, it provides some great insights into what BFS Inc. has been providing to clients like you, and not just during the most difficult times. Here’s a key quote from the article: “A recent study from Investment Planning Counsel (IPC) found that almost three-quarters of Canadian investors believe they need financial advice to be successful in the future. The study, done in August in partnership with Environics Research, suggests the need for professional advice has been greater during the pandemic, with a third of survey participants saying they increased communication with their advisors over the spring and summer.”
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