Last time oil fell this fast, going from upwards of $135 a barrel to less than $35 in a half-a-year, but this is a new market for oil, according to the Conference Board of Canada. The think-tank’s outlook through 2019 predicts that oil will hover around $80 a barrel, due in large part to fracking technology that has unveiled huge crude volumes.
While the numbers exhibit gloom and doom for many, it’s been a boon for Hirani as he’s had a chance to diversify and differentiate himself.
“The markets are down and my clients are way up, which makes me happy because that is when it’s easy to differentiate yourself,” he told WP. It’s harder to do that in bull markets because even a turkey can fly in a strong wind. Energy will remain low. Unemployment will rise, net migration will dissipate real estate values will plummet, taxes will rise and consumption will decrease.”
“The best bet is to reflect on one’s overall asset allocation and ensure that sectors like Global Dividend Funds are a part. If energy continues to weaken (and Canadian Rates continue to decline) then you will see further erosion in the Canadian Dollar, which will positively affect assets held in Global Funds.”