Filter Out the Noise

Today is one of those days where you need to filter out the noise. Headlines are negative and Markets are selling off.

Days like this show the value of a plan.

The one guarantee with the stock market is that it will be “up and down”. There are going to be a lot more days like this over the months and years to come.

No one knows where the market is going in the short term. If you can understand and accept this, then you can get and stay invested.

What you can (and should) do:

1. Engage in a Financial Plan to help determine the risk you need to take;

2. Think long and hard about the risk you want to take; and,

3. Using this information, set a “risk bucket” so you can “buy, hold and don’t panic”.

Your resulting Portfolio should be customized, with a personalized mix of:

1. Cash;

2. Safety (Government Bonds, Corporate Bonds and Preferred Shares);

3. Tactical Investments that can invest be anywhere from 100% Cash to 100% Equity; and,

4. Risk (as above).

If you have done these things, then you have a better chance of filtering out the noise and sticking to your plan.

Markets have rebounded significantly from the lows in March of this year. This is providing an excellent second chance to re-assess your plans and risk tolerance, and to add a tactical sleeve if you haven’t done so. If you want to talk about this and/or if you are looking for a no-obligation review of your current portfolio and plan, please feel free to call me directly at 416.231.6528 or email me at jeff.ker@rbc.com.