Inflation, Market Volatility and Your Portfolio
Inflation and your investment portfolio
The theme for the first half of 2022: inflation.
It’s been an interesting year so far. The country has opened up, and many pandemic restrictions were lifted or eased. At the same time, we feel the lasting effects on the economy and our financial investments.
Nine months ago, most central banks were assuring the public that inflation is transitory, supply will pick up shortly, and equilibrium is on the horizon. That has not been the case.
What does this recent stock market and bond turbulence mean for you as an investor? Should you adjust your inestment portfolio in light of current market volatility? What’s the best investment strategy for an investor during times of high inflation?
In this episode, Marcelo and Keith talk about investment portfolios, where things are with inflation in Canada, and our recommendations for investors in terms of how to move forward. We’re looking at how different asset classes have performed, why we’re having both bond and stock market returns being negative, the main drivers of inflation in Canada, what we can learn from history, our takeaways for Canadian investors, and so much more!
Also listen to:
Investment strategy during high inflation
- What it means to be in a bear market (2:10)
- Year-to-date asset class returns (2:51)
- The unique situation of having negative bond and stock returns (3:27)
- Shifting perspectives on inflation (5:04)
- The four main drivers of rising inflation levels (7:56)
- Continued struggles in the industries hit hardest by the pandemic (9:08)
- How inflation affects bonds (10:46)
- Why stocks are so volatile right now (11:41)
- The wide-reaching impact of rising interest rates (13:56)
- Key takeaways from inflation trends over the past 70 years (15:18)
- How our investment philosophy is helping to protect client portfolios (16:42)
- The importance of staying the course during volatile periods (19:30)
- Why this is the perfect time to add money to your investment portfolio (21:51)
- Maintain perspective (23:25)
- And much more!
2022 Financial Year in Review and Looking Ahead for 2023
Investors who maintained perspective and long-term discipline by committing to a fundamentally sound investment plan were able to weather through the periods of market uncertainty and stay on the path to building wealth.
Are rising interest rates a curse or a blessing?
2022 has been a challenging year for Canadian investors; inflation is higher, interest rates have been going up, bonds are down, and stocks have been volatile. Typically, bonds have sheltered investors in periods of uncertainty. This hasn’t been the case this year.
Managing your Investment Portfolio Through a Recession
We discuss the looming possibility of a recession and how you can successfully manage your investment portfolio through uncertain financial times.
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