By Scott Ronalds
As an investor, there’s seemingly a lot to worry about this summer: Greece’s woes, falling commodity prices, China’s slowing economy, the Federal Reserve’s next move, and the sinking Canadian dollar.
It’s a full plate. But then again, when is it not? There will always be political and economic events to fret over. And the media is good at making sure you know about them. The day’s headlines, however, should not be consuming your summer.
Your focus should be squarely on your Strategic Asset Mix (SAM). If it’s strayed from your long-term target, it’s probably time to rebalance. Give us a call if you want to discuss. If it’s on mark, relax and enjoy the sun. The markets will do their thing in the short run and are beyond your control. Beyond everyone’s control.
As long as your portfolio is well diversified and you’re not taking on more risk than your plan calls for, there’s no need to lose sleep over events in Athens or Alberta. That’s our job. Our managers are experienced at navigating through economic cycles and are making adjustments where they see fit. (Example: in the Equity Fund, Starbucks was recently trimmed in order to allocate capital to stocks that offer greater upside potential. These include: Chicago Board Options Exchange (CBOE), whose business will benefit if market volatility increases; and CN Rail, which dropped sharply in the spring on concerns over lower coal and oil shipments, but is a best-in-class railway with a diversified revenue and geographic footprint and solid longer-term outlook).
It’s only natural to be concerned in the face of troubling headlines and sharper stock movements. But if you’ve got a SAM and commit to a routine, you’ve laid the groundwork for success. If you feel the need to agonize over something this summer, make it the weather forecast.