We have always been taught that diversification is good, as is being defensive in a difficult equity market. In past, this has been mostly true but in the last few years that didn’t really help and here’s why. Bonds Bonds have been an integral part of a diversified investment portfolio
September is historically the worst month of the year and this year didn’t disappoint. Wait, yes it did. The TSX Composite was down about -3.7% and the S&P 500 was down about -4.9%. Year to date, Canada was only up about 0.8%. The S&P 500 and NASDAQ have vastly outperformed Canada and the Dow Jones Industrial Average. What’s next?
Clients sometime ask about the S&P 500 and whether or not they are or should be invested in it. The S&P 500 is an index of the largest 500 companies in the Unites States stock market, the largest market in the world. Together, S&P 500 companies hold $7.1 trillion in assets and account for close to 80% of available market capitalization.
All the economic news is currently about what “the Fed” will or won’t do next. Raise rates, lower rates, or take a pause. But what does that mean exactly and how does it relate to your investments? Let’s break it down.
Principal At Risk (PAR) structured notes are the most complicated instruments we recommend to clients. We are breaking them down for you this month and giving you a couple of examples of ones that some of you have owned. Structured notes can work in a portfolio as an alternative to fixed income.
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