Video - Financial Markets : strategies for this economic cycle
November 2016 - Financial Markets : strategies for this economic cycle with our expert Michel Doucet.
SUBJECT : The financial markets
EXPERTS : Michel Doucet
Note: The information in brackets "[...]" describes the visual and audio content of the video other than the dialogue or the narration.
[Jinggle music begins. The title ‘’Market Trends’’ appears in a honeycomb cell, then replaced by the video’s title: Financial Markets: Strategies for this economic cycle – November 2016. It all gives way to the Desjardins Securities logo. These images give way to Mr. Michel Doucet in an office. Behind him, we can see computer screens with stock quotes].
Michel Doucet (B. Sc., CIM®, Vice-President and Portfolio Manager, Portfolio Advisory Group)
Getting a handle on financial market is no easy task for investors. History has shown that we should never say : this cycle is different. Well, guess what? This time around, I’ll say it : this economic cycle is very different from anything we have witnessed since 1929. It has been built on the remains of the end of the super debt cycle in the US. Also on the financial crisis, world financial crisis of 2007, which has brought central banks to intervene massively into market, and also to adopt experimental monetary policies.
By this I mean : driving interest rates below 0 %, buying debt in the market, to stimulate the economic growth. Investors have to deal with demography, everchanging technologies and China that is taking its place in the World economy. It is easy to get lost for investors. There is a lot of bad news out there. Strategists, economists, financial analysts are on streaming medias 24/7 talking about bad things that can happen to the market. There is a lot of cash on the sidelines. Everyone is hoping for the same thing: will this correction eventually come so that we can deploy this cash in the market?
Having said this, why not focus on what is positive? We’ve got economic growth, we’ve got central banks pumping money into the system, to drum up some demand, on the economic side. Next year, governments will step up to the plate by spending more into the economic. All this is positive. Setting on the sideline is not a option.
My advice to you : stick to your investment plan. Remember who you are. Get back to basics: managing your asset mix, your sector rotation, your geographic mix. Opportunities will arise. Seize the moment!
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