Top expert advice takeaways from 2024

During periods of political and policy shifts, diversification becomes a cornerstone of a stable investment strategy. CIBC Chief Economist Avery Shenfeld emphasized this point in a short video about the potential impacts of U.S. economic policy on Canadian markets.

“Given all the uncertainties we face over U.S. economic policy in the next couple of years, and the material implications that we’ll have for our currency, our equity markets, our interest rates, a diversified portfolio makes sense in an uncertain world.”

Why it matters: Political events, such as U.S. elections, can significantly impact markets, creating both risks and opportunities. A diversified portfolio helps cushion against these shocks, ensuring stability and potential growth despite uncertainty.

On the Smart Advice podcast, Michael Keaveney, Vice President, Managed Solutions, CIBC Asset Management, shared a powerful reminder about market downturns and their role in long-term investing success Opens a new window..

“Short-term downturns are a feature, and not a bug of equity markets,” Keaveney said. “Markets are not linear in the return path that they generate for you. A lot of your overall return comes from a relatively small number of really good periods…Those best times come probably right after the worst times.”

Why it matters: Stepping away from the market during downturns often leads to missing out on critical recovery periods that drive long-term growth. Staying invested through volatility ensures you benefit from the eventual rebounds.

Craig Jerusalim, Senior Portfolio Manager with CIBC Asset Management, explored energy sector trends. He used the example of oil to highlight the value of aligning investments with strong supply-demand fundamentals.

“Over the very long term, oil demand growth tends to follow population growth and GDP growth,” Jerusalim said. “You have limited supply growth with growing demand, and that’s a good setup for the supply-demand fundamentals for energy moving forward.”

Why it matters: Sectors like energy, where demand consistently outpaces supply, present compelling opportunities for stable and profitable investments. Focusing on these fundamentals can strengthen your portfolio’s long-term growth potential.

With about $800 billion to $1 trillion in mortgages coming up for renewal between 2025 and 2027, Carissa Lucreziano, Vice President of Financial and Investment Advice, underscored the importance of proactive planning for mortgage renewals.

“You want to have a clear picture of your cash flow based on the options available to see the impact on your household expenditures as a whole,” Lucreziano said, advising it’s wise to start working on your mortgage renewal 4 to 6 months in advance.

Why it matters: Early preparation gives you more time and flexibility to secure competitive rates and make informed decisions, reducing the stress of last-minute financial adjustments.

Jamie Golombek emphasized the importance of preparing for future health and tax-related expenses in an article on estate planning tips to preserve your wealth.

“Without planning ahead, complications can arise for even the simplest estates,” Golombek said. He advised that planning ahead can help ensure you have the funds for any health needs that might arise as you age, and also that your beneficiaries can cover taxes on any assets you leave them.

Why it matters: By addressing potential healthcare expenses and tax liabilities early, you safeguard your family’s financial stability and ensure your estate is distributed according to your wishes.

This curated advice from 2024’s expert conversations includes important guidance for building a resilient financial strategy. From understanding market dynamics to proactive planning, these lessons can help you navigate the complexities of a changing financial landscape with confidence.