A number of elements must come together to form a successful investment portfolio, and it never happens by accident. It’s critical that your investments are selected using a high level of knowledge, discipline and due diligence, and be adjusted as needed to reflect a change in your situation or the markets. Your portfolio should be diverse and speak to your unique needs, goals and risk tolerance. Investing isn’t about doubling your money overnight – it’s about utilizing a proven, long-term approach that addresses your financial needs today, tomorrow and for years to come.
As a Senior Wealth Advisor and Portfolio Manager with 20 years of experience in personal finance, I am passionate about creating portfolios that help my clients achieve their goals. 2018 has already been interesting with new developments in technology, legislation and just this week, the Bank of Canada raising the key interest rate for the third time in less than six months.
Scotia Wealth Management recently released a report by Nick Chamie, Director of Portfolio Strategy at Scotiabank. It’s a fantastic overview of industries to watch in 2018, and inasmuch as we share his view, we are pleased to share some of his commentary with our clients. While each portfolio is managed with the specific client in mind and this should by no means be taken as literal instruction, these sectors are generally expected to perform well and will be interesting to monitor in the months ahead.
As an aging population creates a surge of demand in the healthcare system, biotechnology is perhaps more relevant than ever. Global healthcare spending is on the rise as calls for new pharmaceuticals, medical equipment and treatments grow. As Chamie notes, ‘The amount spent globally on healthcare spending is expected to rise from US$9.21 trillion in 2014 to US$24.24 trillion in 2040’. With this massive growth comes a wealth of innovation and investment opportunities (both current and to come).
AI and robotics
From self-driving vehicles to medical technology, virtual assistants and smart appliances, artificial intelligence is everywhere – and it’s developing at a rapid rate. This dramatic, disruptive industry shows no signs of slowing down and will continue to expand its reach into our everyday lives.
Renewables are the fastest growing fuel source category in the world, Chamie reported, and it’s no surprise. There is increasing demand for cleaner energy options, such as solar and wind power, and many governments as well as businesses are in support of the shift. Those who are interested in value-based on socially responsible investment strategies may be particularly interested in this sector.
As Chamie notes in his report, The World Bank expects China to be the world’s largest economy by 2030 or sooner. China initiated an economic transformation plan in 1978 and joined the World Trade Organization in 200. They are currently the second most powerful economy in the world, behind the United States of America.
A controversial and somewhat unsettling topic, defense spending is up as many nations invest in aircrafts and other military equipment. Donald Trump has requested a $150 billion increase to the 2018 U.S. defense budget. Much of this heavy spending in the U.S. and across other nations can be attributed to a rise in populism and the struggles of the middle class, which has arguably led to increased nationalism and subsequent defensive planning at a political level. We will see this sector grow as nations around the globe continue to shore up their military capabilities.
Again, our specific recommendations will depend on each client’s personal situation, long-term objectives and risk tolerance. All current and prospective clients are welcome to discuss the details of their portfolio with me at any time – I’d be pleased to review your needs or offer a second opinion. For now, we are pleased to offer a look into 2018 investment trends and hope you are feeling as positive about the new year as we are. If you have any questions or feedback, please give us a call!