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Adjustment to the composition of regular portfolios this spring?

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asked Apr 05, 2018 04:55 PM by
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Hello,

will you be adjusting the regular portfolios this spring like you did last year then you introduced the Gold ETF CGL-C.TO to replace ZPR.TO?

Thanks!

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answered Apr 06, 2018 08:33 AM by
Jin Won Choi gravatar image Administrator

Hi HelmutD,

I've considered changing the portfolio, but I've decided not to because I think the current portfolio mix is well suited to the environment we face today.

There are three dangers that I personally see in today's market.

One, I think some sectors of the stock market are overvalued. Tech stocks and marijuana stocks come to mind. But our portfolios don't contain any of those stocks.

Two, there's a good chance that inflation will soar in the coming months, because of the huge budget deficit in the U.S. as well as the trade war. Long term bonds will suffer in that scenario but again, our portfolios don't hold any of those.

Three, the trade war could cause a recession and sink stocks. Normally, we'd want to sell stocks to buy bonds if we think a recession is coming. But in this case, buying bonds might not be the best course of action because of the inflationary effects of a trade war I mentioned above. The best way to protect our portfolios in this case is to hold gold, which our portfolios already have.

So all in all, I don't see any obvious way that our portfolios could be improved. That's why I've decided to leave the portfolios unchanged for now.

Jin

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Thanks a lot for the explanation! Greatly appreciated! :-)

HelmutD ( Apr 10, 2018 10:48 AM )edit
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Asked: Apr 05, 2018 04:55 PM

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