Ok, so how come your not freaking out right now????????
Its a Technical Recession, not a REal one
Oh that makes me feel better... No it doesn't. The one line that stands out from this article is this:
"Because most of our economic models are based on what happened in the past, and I have a strong suspicion that they’re not going to work for us." - Frances Donald, Manulife Investment Management
Translation: We have no idea what we are doing, as we have never dealt with a situation like this before. Combining all the factors that have gone into the last 3 years of Pandemic Panic, and seesaw econnomic swings, there is no way to predict the future, as everything we speculated on, is base from past economic data.
We are in uncharted territory, and anything can happen. The author remains optimistic, siting housing shortages in Canada, pent up demand in Housing, the potential for interest rates to drop as early as May, or not. But what has the past taught us?
Markets always recover, eventually, so maintain a long investment horizon
Equitys always outperform fixed income, but its still a good hedge to have Bonds/TBILLS/Cash in a portfolio
Blue Chip and Dividend paying stocks, are more stable in rough times
Diversification, keeping a balanced portfolio, and dollar cost averaging mitigates risk of loss in every and all market conditons.
Germany, England, and China are feeling the brunt of their Economic situations, but the US and Canada are holding on... for now. But the risk is increasing that some pain will come within the coming year and beyond. And yes its great that target inflation has dropped unexpectely, to 2.9%, but no action is being taken. So its pointless to discuss as the FED and BOC are stuck in maintenance mode, until further notice.
They are waiting for the Fibonnaci numbers, and voodoo bones to show them the way... but sadly... there is no clear path forward.
There is no reason to worry about a recession in Canada
We've survived many in the past, and in fact, they become opportunitys for those who have cash and can take advantage of it.
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Or build yourselve a tiny home on wheels and live off the income you make from busking with your Ukelele, that works too.