Traditionally, the end/beginning of the year sees billions in new cash poured into RRSP’s and TFSA’s. If you’re anything like me you want to put those funds to work right away. Unfortunately there is too much going on right now to warrant a knee-jerk investment. Stocks in general are fully priced or overvalued, and both short-term and long-term bonds are not offering substantial returns. The best advice for those out there looking at deploying capital is to wait it out. The following issues need to work their way through the system:
- Interest Rate Hike
- Mortgage Rules
- Ontario’s Minimum Wage Change
We at BBT see a negative or Bear Market on the horizon. Once all or a majority of the uncertainty has cleared we believe there will be a good buying opportunity. Good companies will always adjust and thrive in a hyper-competitive marketplace. Our job is to pick the ones that do this consistently and invest when the time is right. And that time is not now.