Diversification is an effective hedge against market volatility, according to BMO, which is reminding Canadians to not put all their eggs in one basket. It must be almost Easter.
Factor-based portfolios that rely on Barra factors like momentum, value, growth and volatility don’t always cut it in Canadian markets, according to research by Pyramis Global Markets.
It appears that last year’s stock market volatility has taken its toll on investor confidence, sending many scurrying back to basics. The lowly Guaranteed Investment Certificate is enjoying a surge in popularity, according to one bank.
Even as the world gets its economic act together, it’s still too early to abandon a dividend strategy.
Yields may be at record lows, but bonds still serve as a valuable counterbalance to “bad events” that can occur in a portfolio.
A constant stream of scary global microeconomic cues has created unprecedented risk aversion among investors who are now playing for capital preservation rather than capital gain.
The average retail investor is notorious for trying to time the market—and for doing a remarkably poor job at it. Rather than wait for incontrovertible evidence of a bull market, your clients should probably be getting back into risk assets now.
When new money finds old masterpieces the result is historic financial performance. As an atypical asset class, art has been steadily growing as a preferred haven for wealthy investors shunning wild swings in stock markets.
Asset allocation is the strategy investors follow to divide their money between different assets like stocks, bonds and cash. The underlying principle is that prices of different assets move in different(uncorrelated) ways, leading to the idea that diversification protects against risk, which is defined as volatility. But asset allocation says little about the investor’s objectives.
Since news of Europe’s banking and sovereign debt crisis broke in the latter part of 2009, sales of European equity funds have been in continuous decline, while the volatility of the MSCI Europe index has increased.