In today’s investment environment, it is becoming more of a challenge to find options that provide a safe, steady and increasing rate of return on our investments. Over the course of the last 6 months, we have seen a lot of volatility in the equity markets — particularly in the resources, energy, and materials sectors. Other sectors within the global markets have maintained some growth through this period. We once thought bonds were safe havens for investments during turbulent times, but in recent years we have seen the rates of returns on bonds diminish with prolonged lower interest rates. When interest rates rise, the bond yields will diminish further. GIC’s used to be the choice of shelter, but with the current interest rate environment, combined with our inflation rate, the returns are mainly non-existent. I am of the opinion, particularly during these times of volatility and plunging equity markets, that the best course of action is to make sure our investment portfolios are well diversified among the sectors of the markets that provide for reasonable growth, along with some protection on the downside. It is very important to make sure our investments are reviewed periodically to maintain this objective. Have confidence and trust in the people who provide you with investment advice, as well as the managers responsible for the investment decisions on the funds they manage. Once this is in place, be certain to “stay the course”. I am just a phone call, text, or email away. Please don’t hesitate to contact me if you wish to review your investment portfolios, share your concerns, discuss alternative options, or discuss investment strategies for the future.
– Jim Galpin