Leading the Path Forward – Working Together in a New Environment

When Michael retired at the end of 2023, after almost seven years working together, I welcomed the opportunity to become your trusted advisor and portfolio manager. I’m honoured to have the opportunity to earn your trust and confidence. I look forward to working with you all in providing advice and guidance for your financial affairs as we work together to achieve your goals. While Michael and I worked as a team together in the office, he passed on much of his wisdom, professionalism, and commitment to me, and given our relationship, Michael and I still converse regularly. Accompanying my licensing, designations and professional qualifications, I want to assure you that, like Michael, no one will care more than I about your financial future outside of you and your family.
I also want to take a moment to highlight the fantastic team we have and how each of them is involved in your financial success, stability, and growth. Each are an integral part of the team and they all work closely alongside me to deliver a 5-star, award-winning experience.

Anka Molon: Senior Manager, Client Services & Practice Management
Natalie Nunn: Client Service Coordinator
Alex McCallum: Investment Advisor Associate
Shawn Ryan: Insurance & Estate Planning Specialist
George Comminos

Further to this, we also have Lisa Bailey who works with us as a contracted tax specialist. Many of you know her from years past and she continues to be a great asset in helping prepare a large volume of client tax returns each year. The wide breadth of knowledge and experience of our team as well as my own experience and licensing as an Associate Portfolio Manager and Certified Financial Planner allow us to offer you the best in financial and wealth management.

We are also bringing you new technology in our updated and revitalized client portal. We look forward to your feedback on its enhanced reporting and visual infographics to help further interpret your portfolio and show how we are performing. There are a number of other portal and technology initiatives we look forward to bringing to you this year as I further develop upon what Michael built prior to his retirement.
The world around us, outside of Prittie Private Wealth, shows some good signs as well. Markets have had a positive start to the year and inflation in Canada has been steadily trending downward. The dialogue surrounding Bank of Canada activity has hinted at possible interest rate cuts and the US Federal Reserve has signaled they intend to cut interest rates as well. While we don’t know how much rates may come down, we expect it to stimulate the economy, boost market outlooks, and have a positive impact on Canadians. It will become easier for individuals and companies to borrow capital and stimulate the economy, which, in turn, we expect to have a positive downstream impact.

With this potential outcome in mind, we have already begun preparing portfolios for a new economic environment. For those who may recall, I wrote about interest rates, fixed income, and the concept of duration in the Summer 2022 edition of this newsletter entitled “I Thought My Bonds Were Safe”. The mathematical principles in that article hold true, especially today. When it comes to portfolio management, taking advantage of those opportunities is paramount as is the importance of buying and holding high quality businesses for the long term. Fundamental valuations at this time are incredibly important as those companies who weathered the storms of the last few years and have built up cash reserves, continued to develop an economic moat, and strengthened their overall financial positions are well suited for a rate cut environment. Even should rates not come down, these are still the businesses that will persevere.

Of course, there will be volatility on the road ahead with major elections around the globe, geopolitical tensions and global conflict, but, over the long term, the trend has been upwards. By focusing on the long term, we can avoid having emotions affect our portfolio, and, by ensuring adherence to a financial plan, those short-term fluctuations become excellent opportunities to be, as Warren Buffett says, greedy when others are fearful. But we should also remember to be fearful when others are greedy and valuations in the market become unreasonable.

I look forward to working with you over the years ahead in building your wealth and long-term prosperity. I will always do what is right, rather than what is easy, and I will always be an advocate and ally of yours in reaching and exceeding your financial goals.

Written by: Adam Prittie