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Investing through market uncertainty

Global events can cause worry, but the right process should hold things steady
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What does a US/China trade war look like for my investments? Does NAFTA affect my retirement goals? These are a couple of examples of global policy issues that cause investors to get a headache and look for the eject button.

Information delivery is faster and broader than it has ever been, and all this information seems to fuel more uncertainty for all types of investors. Yet, through all this noise, markets have climbed a wall of worry and trudge ahead.  

External events and unpredictable news, such as President Trump’s Twitter feed, are things that you as an investor and we as advisors cannot control. One thing you can (and should) control are the types of investments you hold, and how they match your goals and needs.

The best way to weather the ins and outs of the world around us, and keep investments as stable as possible, is to follow a tested investment planning and review process that is designed to anticipate fluctuations and unsteadiness, and has proven its worth through periods of volatility in the past.

Your goals as an investor come first and foremost in this process: understanding the purpose for the money you are saving drives the selection of the right investments. If you are still accumulating for your retirement, you should continue to be focused on the long-term growth of your investments, but make sure you control risk by diversifying your portfolio. This is key to stability.

However, if you are retired and living off your hard-earned savings, you need reliable sources for your annual income that may have lower yields but offer protection from short-term precariousness in the markets.  

After these goals are distilled, your advisor can build a portfolio that matches these needs. This should follow a step-by-step process that results in a portfolio which provides superior risk adjusted return. 

However, that is only one piece in the puzzle; it’s a part of an overall wealth management strategy that helps to achieve and protect all the parts of your life that are important to you. Ask your advisor about that full strategy to ensure confidence in the recommendations they make.

If these foundations are in place, whether you are reading the newspaper, social media or watching the news, know that your savings are set on a long-view course to achieve the things you desire in your life - despite day-to-day disturbances. Try not to focus on the short-term turbulence, and know you are on your way to arrive at your destination.

Will Mactaggart | will.mactaggart@richardsongmp.com | 519-827-2906

All material has been prepared by Will Mactaggart. Will is a Director, Wealth Management and Portfolio Manager at Richardson GMP Limited. 

This publication is intended for informational purposes only and is not intended to constitute investment, financial, legal or tax advice. It does not take into account your particular situation and is not intended as a recommendation. You should seek advice regarding your particular circumstance from your personal tax and/or legal advisors This publication is based upon information considered to be reliable, but neither Richardson GMP nor its affiliates warrants its completeness or accuracy, and it should not be relied upon as such.

Richardson GMP Limited. Richardson GMP Limited, Member Canadian Investor Protection Fund. Richardson is a trade-mark of James Richardson & Sons, Limited. GMP is a registered trade-mark of GMP Securities L.P. Both used under license by Richardson GMP Limited.

 

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