Keeping Perspective:

When the economic news gets negative and the "noise" factor builds, it is important to remember that this is all occurring in the short-term.

However, Wealth Management is about long-term goals and objectives and there will be plenty of short-term adjustments that occur along the way.

(click on the chart to blow it up)

•  Canada's economy has been outperforming "advanced economies" since the late 1990's.
• The oil price "shock" has been in play since the last quarter of 2014.
• As the Bank of Canada adjusts monetary policy to accomodate this, economic growth should likely respond.
• A weaker Canadian Dollar is positive for the export economy and will drive other sectors to compensate for weakness in the energy sector.
• The Canadian economy is diverse enough to weather the storm in the short-term as long as the inevitable "over-reaction" is contained.
• For investors who tend to suffer from "home country bias", i.e. overweight home country equity assets (because they are comfortable with what they know), the lack of diversity may be a challenge to portfolios.

It is why I continually sound like a broken record: Balance and Diversity in a portfolio will out-perform over the long-run!

The views expressed are those of the author, Scott Tomenson, a Raymond James Financial Advisor, and not necessarily those of Raymond James Ltd. It is provided as a general source of information only and should not be considered to be personal investment advice or a solicitation to buy or sell securities. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor's circumstances and risk tolerance before making any investment decision. The information contained in this blog was obtained from sources believed to be reliable, however, we cannot represent that it is accurate or complete. Raymond James Ltd. is a member of the Canadian Investor Protection Fund.