As the current year comes to an end, there are a lot of changes happening in the commercial real estate market. Here are six New Year’s resolutions Canadian investors should be making to ensure that 2017 is a great year for their portfolio performance.
- Review Plans & Goals
Now is the perfect time to review your financial plans and investment goals, as the market is now pivoting once again. Questions worth asking include; are you where you need to be for retirement? Is the estate being built sufficient to provide for your heirs? Do you need to raise your retirement numbers to account for inflation or currency fluctuations?
- Reevaluate the Market & Portfolio
Take a closer look at your portfolio, and the direction of markets. Have some investments peaked? Are there areas which may now be ripe for investing in again? Is equity and capital being maximized based on the current cap rates?
- Resolve to Make Changes Swiftly
Don’t just follow the herd. Look at where the puck is going, and make moves sooner in order to reap the best benefits and rewards.
- Conduct Thorough Due Diligence
It’s always smart to do your own due-diligence. Always research any statements or data provided and get a second opinion. Although, you must be able to move fast when good investment opportunities arise, allow time for due diligence, as this will make the difference in whether those projections pan out or not.
- Invest Sustainably
Commit to making sound and sustainable investments and leave the gambling for fun when you are on holiday in the casino. Currently, there are stocks which are clearly overpriced, which has gotten worse over the last few weeks of 2016.
Reportedly Uber is the most valuable company in the world. Yet, recent leaks reveal the giant may be burning around $1B in cash per quarter. Coverage suggests that Uber is just using VC cash to subsidize ride fares in the hopes it can get the competition to go out of business before it does. However, this strategy might be doomed for failure as Uber’s main competitor, Lyft is estimated to be growing almost 8x faster than Uber.
Regardless of the recent trends in the equities market, it’s time to commit to making some truly common sense investments, where the numbers work, and where profit can be comfortably sustained.
- Stay Objective
Resolve to remain objective, as there will be twists and turns in the media and economy over the next 12 months. We can be certain of that. Yet, it is important to stay on target and not to allow the short-term fluctuations of the market to make us react emotionally.
Overall the current sentiment in the market is bullish. Yet, Canadian investors will be best served by pausing for a moment to revisit and reevaluate their goals, plans, and portfolios now.
Make realignments and adjustments where needed and do it quickly and decisively. Do it by choosing sound investments on which you have completed due diligence. Then stay objective and keep your mind on the big picture versus what the media is spinning to get extra views next week.
Richard Crenian blog.