Pattie Lovett-Reid: Setting realistic goals for your portfolio
Are your return expectations too high?
Canadian investors are coming out of the pandemic with higher return expectations. Natixis Investment Managers found investors are looking to see long-term returns 15 per cent higher than pre-COVID, which is 5.1 per cent higher than what financial professionals say is realistic. This expectation is known as the “recency bias,” meaning those who saw their portfolios do really well during the pandemic anticipate the same results during a recovery phase.
Canada’s housing market ‘gone berserk’
Throughout the pandemic, Canada has had one of the world’s hottest real estate markets as home prices surge and demand outpaces supply. For some, this has resulted in an enormous increase in their net worth. “My net worth has obviously gone up a lot, just based on what’s happened this year, because the market’s gone berserk,” said Brady McDonald, a former arborist who started acquiring single-family homes in the small city of Barrie, Ont., in 2015, and now says he has a net worth “in the millions.” But concern is growing in the country as housing shortages increase and professionals are crowding out first-time homebuyers.
Black female entrepreneurs lack capital, mentorship: report
Toronto-based market research firm Pitch Better, surveyed 1,500 Black women-led for-profit and non-profit businesses in Canada and found they often struggle with lack of mentorship and funding, which results in lower profits for their businesses. The report said different perceptions across racial and ethnic groups are contributing to unique hurdles Black businesswomen face. Forty-three per cent of the respondents also reported raising no external funding to create their businesses and a third said they never take advantage of funding programs due to lack of awareness or issues they had in the application process in the past.
Canadians have gotten used to e-commerce: poll
Canadians all across the country are slowly regaining access to their favourite non-essential retailers, but a new poll suggests consumers have gotten used to e-commerce and may be reluctant to pivot back. The PayPal Canada survey found that on average consumers are spending $178 a month through online shopping. That’s an increase of $69 compared to pre-pandemic, which boosts the monthly e-commerce spend in this country to $5.5 billion.
Canadians optimistic about entrepreneurship
The COVID-19 pandemic has proven to be extremely hard on small businesses – one in six may permanently close their doors as a result. Despite the challenging times for the economy, a poll by RBC saw that optimism around entrepreneurship is still alive. The poll found 55 per cent of Canadian respondents said they have thought about owning their own business and 41 per cent said the pandemic has made them more likely to want to start one. Dan Kelly, president and chief executive officer of the CFIB said, “Like all periods of societal change, the pandemic will cause people to rethink how they do business and reveal new opportunities, particularly as many long-term businesses close their doors."
Employees hope workplace flexibility continues post-pandemic
If you work from home, the idea of commuting again once COVID subsides may seem daunting. An Ernst & Young survey has found that Canadian employees have embraced workplace flexibility and want it to continue post-pandemic. Fifty-four per cent said they are willing to quit if there isn’t flexibility around their schedule and working location. “Whether you know - and accept - it or not, your employees have been forever transformed, and walking back this sea of change isn't an option,” said Darryl Wright, partner, People Advisory Services at EY Canada.
“Investors may be worried about large unexpected expenses, the prospect for higher taxes and a slow economic recovery but I believe the biggest fear should be their totally unrealistic return expectations,” – CTV’s Chief Financial Commentator Pattie Lovett-Reid