Another year passes by with 2017 now behind us and 2018 well underway. We are looking forward to all that 2018 will bring, and wish you and your families the best of health and happiness for this new year. Open this PDF for a breakdown by region of the results from 2017 and a brief look forward to this new year.
In our day to day lives, we don’t often worry about the economic growth rate in China or the factors driving the global demand for oil. Here are a few things that may help shape your personal financial decisions in 2018.
1. Borrowing costs are very likely to continue to increase – in this environment you need to be aware of your mortgage renewal dates, ability to renegotiate and taking on more debt.
2. Savings rates may remain lower than inflation for the foreseeable future – if you are not willing to assume any risk, consider locking in to a one-year Guaranteed Investment Certificate (GIC) if that time frame suits your goal. One-year rates have improved over the last 12 months to become a viable option.
3. Think about your overall exposure to real estate – real estate is one of the greatest ways to build long term wealth but overexposure in any one area can force you into bad decisions. The number one rule in real estate investing is to never be forced to sell a property. If you can always sell on your own terms, you have a much greater chance of having success.
4. Do not get emotionally caught up in stock market euphoria – Although we are not yet at the euphoric stage, signs of investors willing to take on excess risk are starting to show. Thoughts like, how much can I make or how do I become wealthy quickly seldom lead to good decisions. More productive thoughts would be, what return do I need to achieve to reach my goals on time (e.g. retirement or funding kids education). It will also be important in 2018 to remember that investing only in things you understand is a great guidepost. True risk is the risk of permanent loss of capital not the risk of short term fluctuations in the value of your investments.'
If you have any questions or comments, please don't hesitate to contact us directly.