Things have changed. A lot. The pandemic has shifted wealth, pushed some industries down while propping others up, disrupted global supply chains, uprooted workforces, and reminded us all that the only constant is change. Making investment decisions in this chaotic environment can be tricky, especially if you are nearing retirement and may need to access your investment income in a few years. The reality is, there’s no playbook and no clarity on what the next few years may bring.

You can, however, regain a sound financial footing and confidence in your portfolio by reassessing your investment strategy. Let’s look at what you should consider to ensure you’re ready for the new normal.

Should you rebalance your portfolio to reduce risk?

One big issue with investing in a fast-moving world is risk. Should you reduce the risk in your portfolio?

This is a personal question that we can help you evaluate based on your objectives, but, the bottom line is, your appetite for risk in the new normal may be completely different than it was pre-COVID.

As a response to the extreme uncertainty, many people have become more risk-averse. If you’re considering a more tame approach to investing in the new normal, you may want to think about increasing portfolio diversity and shifting some of your assets into fixed income investments such as bonds, government securities, and other vehicles that are considered less risky than the stock market. There is a trade-off that comes with lower-risk investments — less risk usually means lower potential returns. However, we offer unique solutions to this challenge.


What about sector weighing — are you taking advantage of the opportunities presented by the new normal?

You may be wondering if you should put your money into some of this year’s high-flying industries, such as health care and pharmaceuticals, or those that are projected to grow over the next decade, such as alternative energy and the electric car market.

There are myriad factors that go into making investing decisions — potential global supply chain issues, new entrants and competition, and regulations — so don’t just look at what appears shiny right now. Do your research and consider both company and market resilience. We’re also always here to offer advice on financial decisions.


Count on the advisors at Bellwether to steer you in the right direction

The world turning upside down is definitely a good time to reassess your investment strategy. Tell us about your situation and we’ll work with you to create a plan for investing in the new normal. Get in touch today. 


© Bellwether Investment Management Inc. 2024. This communication is intended for residents of the provinces in which we are registered and is not meant to be a solicitation to any persons not resident in those provinces. Any opinions expressed in this article are just that, and are not guarantees of any future performance or returns. Some of the information contained in this article has been drawn from sources believed to be reliable but due to the fact that it is provided by a third party, it cannot be guaranteed to be accurate or complete. Bellwether Investment Management Inc., Bellwether Estate and Insurance Services Inc. and Bellwether Family Wealth cannot provide tax advice and therefore we recommend that you consult your tax advisor for further assistance with your tax planning and the preparation of your tax return. The report is prepared for general informational purposes only and the securities mentioned in this report should not be construed as a recommendation for any specific securities.

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