By Adam Prittie, CIM, CFP, BCOM, Associate Portfolio Manager, Financial Advisor
Investing within Canada offers unique opportunities amid evolving trade policies, economic uncertainties, and upcoming elections. To build wealth in this environment, investors should focus on key strategies that mitigate risks and enhance returns.
Understanding Inflation’s Impact
Inflation erodes purchasing power and affects investment returns. In Canada, global supply chain disruptions and fluctuating commodity prices have driven inflation, increasing costs for goods and services. The Bank of Canada’s interest rate policies aim to curb inflation but also influence borrowing costs and market performance. Investors should consider asset classes differently affected by inflation—while fixed-income investments may struggle, real assets like real estate and commodities often serve as hedges.
Importance of Diversification
Diversifying a portfolio reduces exposure to any single market risk. Spreading investments across equities, fixed income, real estate, and alternative assets enhances stability. Given global trade uncertainties and potential tariff changes, diversification is more critical than ever. Real assets, including infrastructure and natural resources, offer potential protection against inflation and economic shocks. Incorporating assets with low correlation to traditional markets further strengthens portfolio resilience.
Investing in Private & Alternative Investments, Stocks, and Real Estate: Equities remain essential for long term capital growth for potential tax deferral and inflation hedge. Investors should focus on sectors less affected by trade disputes, such as technology and healthcare. Dividend-paying stocks provide income stability, especially during economic downturns.
• Real Estate: Investing in property generates income and offers inflation protection, as rental rates typically keep pace with inflation. Industrial and residential real estate in Canada has shown resilience, making them attractive investment options.
• Alternative & Private Investments: Private equity, hedge funds, and REITs provide diversification with lower correlation to public markets. These investments have historically helped high-net-worth individuals and institutions achieve strong returns while managing risk.
Building Wealth in Uncertain Markets
A proactive and informed investment strategy is key. Understanding inflation, emphasizing diversification, and incorporating a mix of traditional and alternative investments enhance financial resilience. Staying updated on political and economic developments, consulting with a financial advisor, and regularly reviewing investment strategies will help investors align with long-term goals.
Take Control of Your Financial Future
For expert guidance, schedule a complimentary portfolio review today and make 2025 a year of financial growth and security.
Contact Me: (613) 728-0101
aprittie@mandevillepc.com
www.prittieprivatewealth.com
Mandeville Private Client Inc. is a member of Canadian Investment Regulatory Organization (“CIRO”) and the Canadian Investor Protection Fund (”CIPF”). Commissions, trailing commissions, management fees and expenses may be associated with investments. Products are not guaranteed; their values change frequently and past performance may not be repeated. Please read the offering documents before investing. Exempt market products are high-risk investments. Investing in exempt market products entails numerous risks including losing all or a significant portion of your investment, illiquidity, and limited transparency. You are advised to consult with your own legal, financial and/or tax advisors prior to purchasing exempt market products.
