I have discussed in recent newsletters how the near-term outlook for the North American economy and equity markets remains sound, albeit with the overhang of risks like US protectionism. There will be an inflection point, however, where we say good-bye to the expansion and hello to the next recession. It is not a matter of if, but when. As the weeks and months pass, watching for shifts in the data becomes ever more important.
When wealth advisors have introductory meetings with prospects the main focus should be on gathering as much background information as possible. This includes an understanding of where they have been, what their current situation is and where they see their future. A general overview of their objectives and risk tolerance is also part of this discussion, as well as their past investment management and planning experiences.