The 2016 economy, and how to invest

A recent article published in the Business in Vancouver paper suggests that B.C.’s economy will lead Canada in growth, at 3.1%.

Truth be told, however, in my view it is as tough as ever to predict how things will go.

The Federal Liberals seem content to let interest rates stay where they are, which should help our exports to the U.S. and our tourism.

Experts continue to call our local real estate market “unsustainable” or something like that, but prices seem to continue rising in many areas of the Lower Mainland.

Of course, mining and energy are not expected to grow given low oil and commodity prices. But with the volatility in the Middle East right now, prices could change quickly, which could change the entire economy.

Any person considering retirement or other types of planning, including selling a residence (and perhaps downsizing), should consider whether 2016 might be “the year.”

If prices start dropping in 2017, for many the wait may result in a major loss. Otherwise, the search for stable investments with good returns will be difficult, regardless of how much the economy may grow.

More than ever, this is a year to get advice, and not to gamble.

This ad ran in the Richmond News on January 8, 2016.