Markets move in cycles — sometimes calm, sometimes chaotic. The one principle that stands the test of time? Diversification.

 

Why It Matters

 

No single investment or sector performs well all the time. Diversification spreads risk — protecting your portfolio when markets get bumpy.  It helps smooth returns and keeps your long-term goals on track.

 

How to Do It

 

Equities for growth and capital appreciation.  Fixed income for stability and income.

Cash and short-term instruments for liquidity.  Alternatives (like real estate or infrastructure) for added diversification and lower correlation.

 

Across Borders & Sectors

 

Invest across industries and regions to reduce concentration risk.  Global exposure helps capture opportunities wherever they arise — in Canada, the U.S., Europe, or emerging markets.

 

Stay the Course

 

Diversification helps reduce emotional reactions during volatility.  Regularly review and rebalance — markets evolve, and so should your portfolio.

 

The take away

 

You can’t predict markets, but you can prepare for them. A well-diversified portfolio won’t eliminate risk — it manages it, helping your wealth grow steadily and sustainably over time.