From Bill Westmacott, BC Life Insurance Broker and Wealth Solutions Provider.:
Do you remember being on an amusement ride at the park as a kid, and the joy of the ride turns into pure panic, as your stomach turns nauseous and your old friend Ralph shows up? Sadly, I have a couple of bad memories like that! I believe that may be an excellent description of the markets in 2025. So, let’s provide some context.
The Trump factor has been a non-stop roller coaster ride for Canada and all trading partners. Here’s an excellent vote by Adam Taggart, “The Trump Administration’s torrent of tariffs is keeping stocks on edge as “Liberation Day” approaches on April 2nd.” Trudeau stepped down after a disastrous ten-year term (Called the “10 lost years of opportunity” by many astute financial experts) and has left Canada in multiple crises and turmoil. If there is any positivity regarding the Trump turmoil, it has awoken Canadians and politicians to deal with our serious problems (decades old) like Provincial trade barriers, having become so dependent on one trade partner with the USA (70%), protecting our Sovereignty and borders as a country. The lack of leadership for decades has left our country vulnerable and weak, and let’s hope that some real change can occur soon and in the next decade.
On top of all the mess, many Canadians believe a central banker (part of the global elite class) is here to rescue Canada. Remember, Mark Carney was a key advisor to Trudeau and loves printing money…well, that is what Central Bankers love to do. We are at a crossroads as a nation, and either we will continue to run massive deficits, ignore what builds a Nation and the economy, continue with BIG government and endless taxation, or choose a higher road and yes there will be pain. Policies do matter, as do party track records, integrity, and competency are all critical in the coming election. I hope we will all choose wisely!
So, what is one to do? I recommend we not go to panic or fear, but equally not bury our heads in the sand and pretend all is well. There are many real challenges we face individually and as a Nation, but not one of us can solve most of the problems, so we must focus on what we have control over in our personal lives and finances. So, let me remind you of Warren Buffet’s famous quote regarding his capital and his two rules. “Rule # 1, do not lose my capital”. Rule # 2, do not forget rule #1!”
So, let’s start there. What are you and your financial advisor doing to protect your capital? Have you had the discussion and what recommendation are they offering? As interest rates continue to fall, once again GICs or term products are losing their shine. When your return is not equal to or greater than inflation, generally this is not a good investment. Despite the market volatility, equities historically outperform bond or money market products over 80% of the time. What if you could receive potential equity returns (5 to 10% plus) with zero risk to your capital? I may have several solutions for you. I help my clients protect their wealth and I provide estate planning guidance to ensure their goals are achieved after a lifetime of building wealth. There are excellent insurance contracts available to those in their 70s, 80s and even 90s. Let me know if I can help you.
What if you had listened to my advice (15, 10, 5 or even a year ago) and put a portion of your wealth into investment-grade physical gold or silver? Well, you would have made a very good decision. Since 2000, gold has averaged a 10% return and Silver about 9%. Last year in Canadian dollars you would have been up 47% in both metals. The bull run continues and YTD, you would be up another 17% to 18% on your savings or as part of your investments. Both Gold and Silver have broken their all-time highs in Canadian dollars (Spot Prices: gold over $3100US or $4460CA and silver $33.64US or $48.40CA as I write). Having a sizable portion of your wealth in gold and silver has been an excellent saving and investment asset. I do not see the trend changing anytime soon. The central banks continue to amass gold at a record pace (5 years straight) and the USA is aggressively purchasing and getting their gold back from Britain (LBMA). Something is a foot in the global financial markets (which most are not paying attention to). There are dozens of other reasons why you should have some gold and silver as part of a well-diversified strategy. If you need help with purchasing, selling or vaulting please reach out to me (anywhere in Canada or the USA). Ask me about the discount I provide for my clients. You can do cash, RRSP and TFSA.
In economic storms and uncertainty, it is very wise to have an experienced Portfolio Manager who knows how to adjust and hedge your portfolio. I have worked closely with Mark Taucar (PM) who has over 25 years of experience building portfolios and managing wealth for Canadians. Mark’s target market is generally those 50 plus or in retirement who do not want to lose their hard-earned capital. Mark also provides excellent quarterly market updates and stable cash flow for your retirement years. If you would like an introduction call with Mark, please reach out to me and I can set that up for you.
There you have it, three great options to protect your wealth in turbulent markets. I foresee the next few years continuing on the path of economic uncertainty, so it is wise to be proactive and adjust your portfolio or wealth strategies before we have another major market event.
