So I decided to take a break from the videos and address what has been happening in the markets.
This week I’ve noticed, as I’m sure you have as well, the media is again picking up heavily on the markets and their less than stellar performance.
In order to be well educated on the current situations I made a point this week to be in on numerous talks from some of our best and most experienced fund managers so that I can pass on to you what they’ve said.
I’ve boiled it down to 3 basic things that we need to take from these talks.
- Right now we are in the midst of turmoil… there is no doubt about that. What we have to remember is that with all the bail-outs and corporate downsizing and restructuring over the last few years the companies in Canada (and arguably the US) are in great shape financially. Most of them contain large amounts of cash on their balance sheets and are poised for this recovery. What we are missing though is the spark. Something that will spark these companies to get out of the ready to pounce position and actually attack the opportunities that exist in the market today. We don’t know what the spark will be… but it will happen. One manager actually went on to say that our companies are actually in far better shape than our Governments (especially when you compare who holds the cash right now).
- The road to recovery is never smooth. It is going to be a rocky ride over the next few months and even years but history tells us the trend will be upwards.
- The market is the place to be. With interest rates being the lowest in
modern history (arguably ever) all the growth potential exists in the markets… not in bonds or cash.
As always if you have any questions please let me know as I’d be happy to answer them.
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