Asset allocation thoughts late in this over-extended cycle

Some useful discussion on BNN about asset allocation decisions (clip below). A rarity!

The comments on late cycle, historic over-valuations in equities, electrification, and mutual funds and ETFs being fully invested at all times, are all very relevant points. And I agree that Canadians are woefully unprepared for the global transition away from fossil fuels which is already underway today.

That said, in terms of the guest’s comment to ‘get out of the Canadian dollar’, I would add that the bulk of one’s savings should remain in the currency in which they pay their bills. So, Canadians cannot afford to ‘get out’ of their home currency. But holding a targeted weight in the US dollar can certainly be a valuable diversification late in each market cycle, when ‘flight to safety’ becomes the dominant concern.  (Year to date, however, holding US dollars has hurt Canadian portfolios, so patience is required.)

Tim Gramatovich, chief investment officer at Peritus Asset Management, joins BNN to weigh in on active versus passive management and why he’s invested in bank loans.  Here is a direct video link.

This entry was posted in Main Page. Bookmark the permalink.