Is it at all possible that, as this New Year begins, in view of the performance of the stock markets, you’re wondering what kind of assets to invest in to obtain some growth in 2019? Let’s look at the most frequently held assets in portfolio management.

Fixed income securities 

About a year ago, we had to buy a 7-year or 8-year government bond to get a 3% interest rate. Today we are able to invest in a two-year GIC (Guaranteed Investment Certificate) to get the same rate of interest. You should perhaps review your portfolio with this in mind and make the required changes, if necessary.

Stocks 

In the past year we’ve seen a lot of market fluctuation and two periods of correction. Now we find ourselves facing a significant increase in volatility. On some days, for example, we could have fluctuations as big as we would usually see on a monthly basis.

In 2019, the stock markets should be able to make peace with some economic slowdown and also with a money tightening. It could be an appropriate time to go back to dividend-bearing stocks and also to give them special weight when the purchase price is lower than it was a quarter (of a year) ago.

Currency is also an important element in the makeup of your portfolio. If you were able to take advantage of the increase in value of the US dollar, this could be a good time to cash in your gains and buy Canadian stocks while the currency is weaker or use financial products that have currency protection.

Now is the time of year to review your financial situation and your portfolio. Don’t hesitate to contact me if you need a second opinion on your portfolio. I’d be pleased to meet with you.