It’s been nine months now, and we’re still in the midst of an unprecedented crisis. The unique situation has created financial and emotional stress for some and opportunities for others. Given the reduction in discretionary expenditures, several people have asked me what to do and particularly, when to invest their new liquid assets. Here are my comments on different classes of assets.

Stock markets

At the beginning of the year, we reached a new high on the major stock markets. In March 2020, we’ve had lows that were more than 30 per cent lower than that high. We are now back in a more normal market and not driven by emotions. The question is to know whether it is still time to buy.

Real estate markets

It’s highly likely that there are people in your circle who have realized real estate profits this year. Mainly in the Laurentians, it was a record year. According to most of the discussions I’ve had on the subject, profits were much larger and faster than usual. There again, it’s my same question. Is it time to buy? To sell? Where are the bargains?

Management of your liquid assets

The sad reality for investors living on interest income is the historically low interest rate levels. There is always a possibility of achieving profits on securities such as bonds or coupons, because there has been a significant drop in interest rates. However, the problem is to know how to reinvest this liquidity.

In other words, the purpose of these reflections is to understand that when it comes to investment, it’s important to have a clear goal, a known period of investment, active risk management and a financial ally so as to succeed in the long term. Have a great start to winter! I invite you to follow me on my Linkedin account and my website.