The late stage of the market cycle is not the time to bail on Canadian equities despite evidence this is a growing trend among investors.
«We are in the middle or
later stages of the market cycle, when these businesses should perform well,» said Lekkerkerker, who also runs the materials portion of the Fidelity Global Natural Resources Fund.
Not exact matches
The U.S. and China are in the
late stages of this
cycle, she says, while Europe and Japan are just reaching the halfway point, and many emerging
markets are in the early innings
of recovery.
However, it may pay to be wary
of entering the
market at this
late stage, as risk / reward ratios tend to become unfavorably skewed
late in a
cycle.
In
late stage bull
market cycles, the inevitable bashing
of long term valuation metrics comes to full fruition.
«We're in the
late stages of the
cycle, so now is generally not the time to take a risk on an empty office building, hoping the
market will return.»
Banks are also more conservative because they recognize that the
market is moving into the
later stages of the real estate
cycle, and some sectors and submarkets could face challenges due to slower growth, leasing challenges or even oversupply.
Yet access to bank capital, especially as the commercial real estate
market moves into a
later stage of the
cycle, is an issue that the ratings agencies are keeping a close eye on.
That being said, the real estate
market is clearly in a
later stage of its growth
cycle and tertiary
markets do have inherently more risk.
With the commercial real estate
market entering the
late stages of its current growth
cycle, industry experts fear that another recession looms in the not - too - distant - future.