Happy Spring! As we close the first quarter of 2023, we are pleased to report that our portfolios have performed quite well, contrary to the negative spin portrayed by the media on the markets. Here is an update on our Q1 positioning:

 

Positioning for the year ahead

During the latter part of 2022, our team began positioning portfolios for the year ahead, with interest rates and inflation being top of mind. We took significant measures to reduce our direct bank exposure before the collapse of Silicon Valley Bank and Credit Suisse. While we remain upbeat on stocks in 2023, we exercised caution and transitioned a large portion of our stock exposure to a minimum volatility solution. We remain optimistic about specific sectors, including the energy sector, base metals (think electric vehicle batteries), and technology, where we have made tactical allocations. Additionally, we have adopted an enhanced solution for our digital assets, which tactically transitions between Bitcoin, Ethereum, and USD Cash based on predefined momentum parameters – this has already proven successful.

 

Traditional fixed-income investments

Given the fastest pace of interest rate increases since the 1980s, traditional fixed-income investments have become more attractive. As a result, we made strategic adjustments to our portfolio positioning. We decided to lower our exposure to alternative investments at the end of 2022, and we transitioned to new positions of investment-grade bonds and high-interest savings holdings. We believe that these investments are more resilient and safer, and they have served our portfolios well thus far, providing stability in uncertain market conditions.

 

Increased liquidity

We have also increased overall liquidity in our portfolios, which positions us nicely to take advantage of opportunities, trim profits, and avoid potential threats throughout the remainder of the year, while remaining cautiously optimistic.

 

Thank you for your continued trust in our investment strategy. We believe that taking a train to your destination rather than a roller coaster is the best approach to achieving your long-term investment goals.

 

As always, if you have any questions or require any assistance, please reach out to a member of our office and we will be happy to help you.

Sincerely,

 

The Team at Stonehaven Private Counsel

 

About the Authors
This commentary was prepared by Jeff Sproul, PFP®, CIM®, Victor Kuntzevitsky, CFA, CAIA, and Grant Dawes, CIM®, CFP®, TEP of Stonehaven Private Counsel at Wellington-Altus Private Counsel. Together, they provide portfolio management and wealth planning guidance to business owners, executives, affluent families, retirees, and multi-generational wealth clients. Learn more about their experience, credentials, and areas of expertise and explore how Stonehaven supports different client needs through its work with business owners, retirees, professionals, families, and next-generation wealth clients.

The material contained herein has been provided for information purposes only.  The information has been drawn from sources believed to be reliable.  Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment.  The information does not provide financial, legal, tax or investment advice.  Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance.  This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document.  Wellington-Altus Private Counsel  (WAPC) does not guarantee the accuracy or completeness of the information contained herein, nor does WAPC assume any liability for any loss that may result from the reliance by any person upon any such information or opinions.  Before acting on any of the above, please contact your financial advisor.