Do you own your own business and constantly worry about the state of our economy as it stands today? What about in a few years from now? While it seems like there are headlines affecting the performance of markets every single day, the truth is that now isn’t the time to worry. True, markets feel much more volatile lately but this is aligned with long-term, traditional norms (more on that in a moment). Let’s take a closer, quick look at what’s happening, what that means for you, and how you should be reacting.
In the news
Oil prices have been falling around the globe. This has created a discount on WTI crude, resulting in the worst pricing environment for Canadian oil, ever. Coupled with the fact that the oil industry has no idea on how to fix the problem – some critics proclaim that production cuts must be mandated while others state the government needs to stay out of it – stalled pipelines are making the problem worse. It’s a perfect storm scenario that’s part of an underlying, bigger picture.
So what the heck is happening?
If it feels like the world is crashing, it’s not. Even so, whether you own your own business or merely own a commercial property that you rent to other entrepreneurs, it’s imperative to stay up-to-date with the news – especially the news that could impact your industry. Look at General Motors as an example. The needs and wants of consumers are changing – as a result GM recently announced they are leaving Oshawa altogether.
Because of this, the Canadian auto manufacturing industry must now renovate and upgrade their manufacturing facilities to ultimately adapt to the changing demands of consumers. It seems simplistic to chock these disruptions up to the world changing, but it’s true. Moreover, the needs and wants of industries are evolving along with various other disruptors (some inevitable, some avoidable).
Despite what seems like bad news – and in addition to Canada’s tech industry continuing to grow – other industries across Canada saw continued growth as well. So don’t think that it’s time to make any drastic moves regarding your commercial property because it simply isn’t the case. Regardless, you may still be asking yourself…
“Should I worry?”
As a concerned citizen and respected business owner, we get it: recent chaotic volatility can put a sinking feeling in the pit of your stomach. Even though the stock market is going through its fourth big rout in 2018, reports suggest that the CBOE Volatility Index has remained on-track to staying within the realm of its long-term, historical norm. The current volatility of the market seems scary and it’s going to continue as the United States’ markets become increasingly vulnerable to various risks, including halting growth around the globe and rising domestic interest rates. Regardless, the increased randomness of markets and the economy as a whole shouldn’t dissuade you from carrying on business as usual. Stay educated about the industries that affect your commercial property so you can make alterations to your commercial gameplan appropriately. As always, if you have any questions about your commercial property, if now is the time to invest in a new commercial property, or what to go do in general, reach out to me – let’s chat.