The first video in our series continues to feature a few interesting and curious things that crossed Brent’s desk during the quarter. Brent reviews the ever-increasing household debt levels. He looks at US vs. Canada and highlights the debt level in Canada is 170% of income and that 48% of Canadians are $200 away from insolvency. Yikes! The skills of a money manager are key when it comes to investing; quality investment decisions and sticking with a strategy are paramount so you don’t fall victim to your emotions. Remember it is “time in the market” not “timing the market” that will produce results.
In the second segment, Brent gives a high-level synopsis of the markets. You’ll see the markets were almost the exact mirror opposite of Q4-2018 with a significant rally in Q1. It took only 17 weeks to recover and reach the previous peak. Interest rates stopped increasing and this resulted in a nice rise in the bond market. We are optimistic that stock markets will continue to rise albeit with price volatility increasing as well.
In the third and final segment in our series, Brent describes the CrossPoint Financial portfolio strategy and the performance of our model portfolios. Our asset allocation (fixed income vs. equities) remains in a neutral position and we continue to overweight the US and Europe and underweight Canada. We hit our 1-year return targets in the first 3 months of 2019 and therefore continue to be cautiously optimistic in our positions. Trades resulted in us decreasing equities and increasing fixed income and alternatives as a step toward reducing risk exposure.
We remain confident that the key to our clients’ successes are holding quality businesses for the long run and we encourage you to review our model performance in detail within the video or download the slides (PDF’s).