AM 1150 Kelowna - Radio Rallies & Reversals

Some thoughts on having a disciplined plan and portfolio diversification: It seems like diversification these days doesn't work; when the market sells off, everything sells off - domestic stocks, international and emerging market stocks, defensive stocks, etc.; but what about bonds and alternative investment strategies?

Year-to-date, global stock market indices are down, percentage wise, anywhere from low single-digit-to-high double-digits; however, North American bonds and alternative investment strategies are up low-to-high single digit percentage wise. Historically, having a diversified portfolio of stocks, bonds and alternative investments strategies has either increased your returns while reducing your risk or reduced your risk while maintaining your rate of return.

The key is to have a disciplined asset mix plan with some flexibility to keep you from trying to time your way in and out of the market, or between different asset classes which usually nets out as a loss, especially when governments and central banks keep implementing knee-jerk policy to fix past policy mistakes.

The Alternative Investment Management Association (or AIMA) has a 'Road map to hedge funds' guide; If you'd like a copy, ask us at yourlifeyourplan.ca or call 250-868-5525.

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