After eight years of monetary stimulus, and based on a broad swath of indicators, it appears that a synchronized global recovery has finally begun. This is very bullish for investment markets.
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As this eventful year draws to a close, I thought I would write a few words about what we have seen the last couple of years and what we see going forward...
A few weeks ago I attended the Dynamic Leaders Conference in Tucson. It was an excellent way to meet with several of the key managers and find out what they are thinking...
Equity markets got off to a rough start in 2016: broad selling pressure dragged most indices into double-digit losses by early February. Global growth concerns, energy price volatility and radical monetary policies dampened investor sentiment.
Last week we moved a significant portion of all our discretionary client portfolios to cash.
Andrew Chowne representing our team in Miami at HollisWealths 2016 My Connect conference.
Most of the time, we believe a portion of your portfolio should be invested in equities. Numerous studies show that equities should provide the highest return in the long run.
Despite a strong month in July, the third quarter was a tough one for financial markets. The S&P/TSX Composite Index dropped 9.1% and the S&P 500 Index dropped 7.1%. The increased volatility seemed to be linked to the combination of commodity weakness, the risk of US monetary tightening and concerns surrounding Chinese economic stability...
Everyone loves a rising market. Financial news takes a back seat in the media. Investment statements look better each month. Life is good. Then reality sets in...
The most expensive housing market in North America? Because we’ve heard it so often, most Vancouverites are well aware that the answer is our own city. Others however, may not find the question so simple.
We know that by traditional measures, such as comparing our incomes to what we pay for housing, the Vancouver market is deemed to be 20-30% “over-valued” … but as James Surowiecki wrote recently in The New Yorker magazine, it seems the Vancouver market may now be priced according to more global parameters. Our real estate market has been the beneficiary of an inflow of foreign money from China of course, but also from other countries including Korea, India and Russia. In the first six months of 2013, nearly half of the twelve hundred luxury homes purchased in Vancouver were bought by foreign buyers.
Apparently, Vancouver may now not only be a “superstar” city (where high earners tend to cluster), but also a “hedge” city: one where social and political stability make wealthy people feel comfortable placing large portions of their cash. Our accessibility to the Pacific Rim, and our large existing Asian population, make our city an attractive destination, particularly for Chinese investors looking to shift assets from a more uncertain environment at home.
This globalization of our real estate market means local fundamentals have less influence. So perhaps our real estate professionals are right. Maybe the Vancouver market isn’t in “bubble” territory. Some very smart investors have decided our city is a good bet, or at least, is a better bet than many of their other options.