With market gains increasingly driven by fewer companies, we revisit the importance of diversified portfolios and the hidden risks of over-concentration. The S&P 500 has become a lopsided index, with the Mag 7 significantly increasing risk exposure. Outlined by Torsten Slok, “the textbook idea that the S&P 500 gives you diversified exposure to risk is simply no longer the case”. In volatile markets, consideration of one’s risk tolerance is key to navigate uncertainty. The trend for family offices shifts towards diversified asset allocation, as standardized investments continually become challenged.
The Market Has Short-Term Memory | The Daily Spark
In a sea of daily news cycles, it’s easy to lose strategic focus and get caught up in the headlines. Apollo emphasizes the discipline required to maintain a long-term investment mindset:
“The bottom line is that markets will continue to hold on to yesterday’s narrative until it becomes completely clear that the narrative has changed.”
Why the US Dollar Is in Decline—and What That Means for Unhedged Investors
Amid tightening credit spreads and robust US equity markets, the US dollar’s decline is being driven more by reduced hedging activity than by foreign divestment. For unhedged investors, the impact may be felt but as the US dollars gains, returns will be recognized.
“For the past decade, unhedged exposure to US assets was attractive. US assets tended to grow, the US dollar was stable or rising in value, and returns were either unaffected or amplified by currency moves”
The Toronto Blue Jays are on a historic run | National Post
A fun break from finance: the Blue Jays are chasing their best regular season in team history. Earlier this month, our team got the chance to see the Jays in-action and the buzz in Toronto is must-see. Sometimes momentum applies to more than just markets.
Tariffs: How Canadian Businesses should orient themselves.
Considering new US tariffs, Canadian firms are advised to realign supply chain and procurement strategies. Preparing to be proactive rather than reactive is key to mitigate the looming risks.
“I think the message from a Canadian perspective needs to be, how do we turn from defence into offence? … Offence is around how businesses can take active steps to mitigate their own tariff costs and to trade around this as effectively as possible.”
Read here
Thought Leadership: Executive Credibility in the Age of Overexposure
In a hyper-visible era, executive credibility is no longer about eliminating risk - it’s about anchoring your message with clarity and authenticity. This article provides a unique perspective on how we can be a leader in our own worlds.
Lauer Private Wealth at RBC serves as the investment office for a select group of institutions and families. The practice is centered on multi-asset portfolio management, estate structuring, and intergenerational wealth architecture.
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Works cited: Apollo Academy, BNN Bloomberg, ChatGPT, Forbes, National Post, Wealth Professional