It is no secret, stocks are expensive. In fact we've been stating that for well over a year. They got a little cheaper after Brexit, so we bought a little bit, but once again at record highs, this is not the place to be buying just because (it appears that) everyone else is.
But those who would decry our more defensive strategy suggest that we are therefore missing out on the latest rally.
That is just not the case. In fact we are out-performing the benchmark and taking significantly less risk in doing so (reducing our clients exposure to the vulnerability of the stock market).
(for more on this: listen to our client webinar from yesterday) at:
"Buy and Hold" strategies may be appropriate for some investors, if they are comfortable with the market swings that come with waves of volatility.
But adding a "tactical" element to our models offers some alternative ways of achieving portfolio growth for our clients without having to fully participate in expensive equity markets.
There is plenty of expertise that we apply to our methodology, something that makes us unique (our "secret sauce").
For some further insight read Paul's most recent blog:
And this is what helps to hold us out from the crowd and keep our clients from becoming lemmings headed for the proverbial cliff.
Looking forward to seeing Vancouver clients this week!
Feedback, questions, ideas, concerns... (no such thing as a stupid question)
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Scott Tomenson,CIM Managing Partner, Chief Investment Strategist