A Look Behind the ScenesCliff Broetz, CSA, Wealth Advisor
On April 17 our Advisory team attended a full day learning event in Vancouver. We had the chance to connect in person with top managers and strategists in the money management industry. Eight different Portfolio Managers discussed current market conditions and economic events. After a long day of deliberation, we left with extensive notes and several points to share with you.
- The 2018 outlook remains robust because of solid earnings and favourable US tax policies, but caution is needed as valuations have become stretched.
- Diversification away from Canada was a prevalent view because of the narrow Canadian market, the amount of consumer debt and a less than business-friendly government.
- More volatility is expected as the business cycle is entering late stages and the market has been largely devoid of volatility in past years.
- Artificial Intelligence, Blockchain and Crypto-currency are key themes that can transform traditional industries. Yet because of high speculation in this space, extreme caution is needed.
- Canadian dollar weakness is expected in the coming year or two.
- Investment success, and the argument for lengthening the business cycle can be tied to the degree to which existing companies deploy new technologies such as AI and Blockchain. As huge efficiencies accrue to adapt to the new world, earnings can continue or accelerate and keep markets moving up. Yet, the corollary is also true—those companies that fall behind or deploy poorly will suffer. All the more reason to have the smartest portfolio managers meeting thousands of companies every year to better understand who is getting this right.
As we navigate this increasingly complex world, we went home concluding that the very best we can do for you centres around recruiting money management leaders in the industry to work with our team. We continue to believe that world class investment teams bring superior results and that Financial Advisors cannot possibly have the scale, resources, time and access to information to pick individual securities themselves. Every day, behind the scenes, we turn over every stone to bring world class management to you.