The investment market has enjoyed a good run over the last few years, but knowing that can’t last forever, savvy investors ask, ‘“What’s coming next? And when?”
“Most things in life operate in cycles,” explains Andrew McCreath, who brings 30+ years of industry experience to his Forge First Asset Management clients and his role as a markets analyst on BNN Bloomberg TV, appearing on The Open and Weekly with Andrew McCreath.
The trajectory of global growth is slowing, which with rising input costs, high levels of corporate and personal debt, and the declining attractiveness of global demographics, are all late-cycle indicators, says McCreath, who comes to the Fraser Valley May 23 for An Evening with Andrew McCreath: Managing Risk vs Return Late in a Cycle. Hosted by Abbotsford’s Cindy Boury Wealth Management, the evening will help investors prepare for expected changes.
After 10 years of growth, “we’re now just a month or two away from recording the longest economic cycle in modern history and markets are stretched for all assets. It’s important to think, ‘Are the next 3, 4 or 5 years going to be like the last 3 or 4 years?’ Probably not,” he says.
What does that mean for investors?
“We’re now at the point in the cycle where investors have to focus more on preserving their gains vs chasing returns (with expected) returns during the next several years much lower than the previous five years,” McCreath says.
“You need to start thinking about risk versus returns, and focus a little more on preserving your wealth.”
But this cycle change is different than previous turns, when higher interest rates for bonds provided more of a cushion against falling stock prices. “It puts investors in a bit of a conundrum,” he says, pointing to the utility of products such as Forge First’s funds being built into client portfolios.
“Properly managed long/short equity funds have shown themselves to be a good tool to preserve equity in tougher markets,” McCreath says.
The knowledge shared at the free event will be vital for investors, especially now that regulatory changes have opened alternative mutual funds to the retail market, not only the accredited investors, Boury says.
“I think everyone will learn something from this overview of the current state of the market,” she says.
“Andrew is self-made, just like we are – very knowledgeable and an independent thinker. He built his fund himself and we really like both the product and the person. It’s a good fit.”
Bring your questions
Enjoy An Evening with Andrew McCreath from 6:30 to 8:30 p.m. Thursday, May 23. The session is free but seats are limited, so please RSVP at 604-855-0654 or email sheryl.boury@raymondjames.ca.
And bring your questions! “Certainly, if people watch my show, they’ll know I’m up for lots of questions,” McCreath says.
Disclaimer: The opinions expressed at the seminar will be those of Andrew McCreath and not necessarily those of Raymond James Ltd. Statistics and factual data and other information presented at the seminar are from sources RJL believes to be reliable but their accuracy cannot be guaranteed. It is furnished on the basis and understanding that Raymond James is to be under no liability whatsoever in respect thereof. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Securities are offered through Raymond James Ltd., member-Canadian Investor Protection Fund.
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