investment

In an historic development, U.K. citizens voted in favour of their country leaving the European Union (EU) by a slim margin of 52% to 48%. The news triggered a dramatic reaction on global financial markets on June 24, with share prices declining sharply and prices for bonds and gold increasing. In currency markets, the U.S. dollar was up against most currencies, while the euro and British pound dropped. Many professional investment managers took advantage of the sharp declines to buy quality companies at attractive prices. Just a few days later, the markets had fully rebounded.

After speaking with many clients and potential clients over the years, a pattern emerges in the direction that the interview takes. There is often a sense of give and take with the client wanting to get certain questions answered in their mind, giving out small bits of information, but withholding the rest as if to keep control of the situation. Perhaps there is a sense that full and complete disclosure can be used against them since information is often thought of as power.

Canadians, like many nationalities, have a home bias when it comes to investing. The majority, if not all of their investments, such as RRSPs, real estate, mutual funds and businesses, are in Canada and are tied to its future economic growth.

These Canadian investments could see reduced returns in the future, however, due to a growing shift in the balance of economic power towards China and the East and away from the U.S. and Western countries.

Investors who start saving at a young age automatically have one of the most powerful assets on their side: Time. To get ahead financially, young adults should beware of some of the most common pitfalls discussed below that can all too easily sabotage a financial success strategy.