Spring Cleaning Your Portfolio
Pyle Group
Spring has arrived and with it comes a sense of renewal and new beginnings. The sounds of animals in your backyard fill the air as they build homes and create families. After two years in this pandemic and watching developments on the other side of the world, I believe this spring is even more important and gives us all something for which to be thankful.
At this time of year, some things never change, whether that’s preparing our homes, gardens and lakefronts, or reviewing our finances. The spring cleanup also applies to our investment portfolios. While some pay close to attention to their accounts every month (or day), it is easy to lose sight of the details as other chores fill our agenda.
We have been through a very volatile first four months of the year—not only in the stock market. Government and corporate bonds have experienced one of their worst corrections on record as central banks promise higher rates to bring inflation down from multi-decade highs. Typically, we think of the bond market as being a counterbalance to stocks – providing support in bad economic times, though losing value when things are booming. That is one of the key reasons most investors maintain a balanced portfolio.
When bonds and stocks head lower, however, this can create anxiety and frustration for investors. Given the movements in both markets, it is possible that your portfolio has deviated from its desired asset allocation. At the same time, economists are changing their forecasts for future growth in the face of rising rates and the uncertainty generated by the Ukraine war. There are now better opportunities in lower risk assets like bonds; at the same time, there are challenges to stocks. Consider taking time today from the yard work to talk to an advisor about your portfolio. This time investment may provide you with a calmer summer.
CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc.
Andrew Pyle is an Investment Advisor with CIBC Wood Gundy in Peterborough. The views of Andrew Pyle do not necessarily reflect those of CIBC World Markets Inc.
If you are currently a CIBC Wood Gundy client, please contact your Investment Advisor.
