INCOMING GAME CHANGER
Wild card, Black Swan, Game Changer –essentially they’re all the same thing. An event or circumstance, beyond our control, that seems to appear out of nowhere. But here’s the thing: we all survived Covid, one way or another. We have an abundance of experience and tools for adapting, and it’s recent.
Plus, some game changers are good! And some tragedies have a weird way of turning into something good in the long term.
We hear a lot of concern from fellow entrepreneurs about Donald Trump’s inauguration. Perhaps this is justified, especially if Mr. Trump isn’t just playing at “the art of the deal.” However, it is key to remember that his specialty is negotiation. The more emotional he makes Canadians, the more advantage goes to the Trump administration.
Now what about the positive game changers that are also happening, right now! The Bank of Canada’s interest rate has dropped down to 3.25%. Just a reminder that it was 5.0% in January of 2024. What does that mean for real estate investors? Better variable borrowing rates should bring some buyers off the sidelines for a busy spring market –if an investor needs or wants to sell an asset, the market should support that. Developers and builders should have access to better borrowing rates, which should move more projects forward (or at least prevent more of the carnage we’ve seen from Toronto and Vancouver). Your personal mortgage broker can provide more information and products that are also impacted by the lower rates. I love more choices, don’t you?
By far the biggest game changer this week is the announcement of Wonder Valley, https://www.youtube.com/watch?v=Npnqkfvo2Lc. It’s is named partly after one of the creators, Kevin O’Leary (aka Mr. Wonderful), from Shark Tank and Dragon’s Den. The vision is for the largest AI data center in the world. Located in pipsqueak, small-town Alberta (Valleyview, current/2021 stats population is 1673). Wow! These are early days, and clearly there are no guarantees that the entire vision will be built out. But if it did, that would be a guesstimated $70 Billion dollar project, over 5-10 years (so add a few extra years for all the speedbumps). https://olearyventures.com/wondervalley/. If only the first phase is built, that is a $2 Billion dollar project. Wonder Valley is some impressive Big Hairy Audacious Goal setting (credit for that expression belongs to Jim Collins). I wonder how many other entrepreneurs will watch closely and create their own super-sized goals? It sure sounds like “go-time” for Grande Prairie!
What’s our point this week? Game changers come in all shapes and sizes, and will continue to unpredictably land in our journeys. Good, bad, or undetermined isn’t often clear at first glance. Please don’t believe how the media paints it all doom and gloom. I’m personally excited to see how each of us will respond and create our Financial Future!
