(With apologies to Mr. Eastwood et al)
The Good: Stock markets (especially in Europe) are higher.
Basically it is a "relief rally"...some good news for the economy from the headline news :
Well my friends, we are certainly happy to see stock prices higher, especially in Canada because we re-balanced at the beginning of the year to add more Canadian equity assets and reduce exposure to US equity assets.
Year to date, total return on the S&P 500 (including dividends and currency adjustments) is about -4.5%. For the TSX, the total return is about + 6.75%. That works nicely in our favour by about 11.25%.
Time to take profit and quarterly re-balance back to even-weight?
And perhaps raise a little more US cash as the S&P 500 is only about 3% from its all time highs and the Bank Of Canada clearly does not want a stronger C$.
Active, discretionary portfolio management can accomplish this in a "heartbeat". Perhaps, if you don't have active, discretionary portfolio management you might wish to call your advisor and have a conversation. If the conversation is not to your liking (or there is an effort to convince you otherwise), I am more than happy to chat.
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Scott Tomenson,CIM Managing Partner, Chief Investment Strategist