Investing in mutual funds
Few people predicted the dramatic drop in the price of oil in 2014. And while the consensus is that such low prices are unsustainable, no one can predict when they’ll rise again or how quickly. In the face of such uncertainty your planning decisions may be affected.
Canada’s oil-based economy
Whether your portfolio has been affected by low oil prices and to what degree will depend on the specific funds you hold. Whether we need to make any changes to your portfolio is another matter entirely.
Remember, your mutual funds have been carefully selected to reflect your long-term objectives, so altering your portfolio in light of temporary market behaviour can run contrary to your financial well-being.
If your personal situation, your investment goals, time horizon, and risk tolerance have not changed, then it probably makes sense to stay focused on the long term and let your portfolio do its work.
If volatility in the oil patch has left you uneasy, however, it may be that you underestimated your risk tolerance. In that case, we can re-evaluate your investor profile and make adjustments if needed.
On the other hand, if you can handle the potential ups and downs, you may want to look at the decline in the price of oil as an opportunity to buy into resource or oil and gas funds at bargain prices.
Let’s get together soon and go over your portfolio to make sure you’re comfortable in the current environment.
Larry Kleinmintz, R.H.U., T.O.T., M.D.R.T.
This newsletter is sponsored in part by Dynamic Funds. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performances may not be repeated. Dynamic Funds® is a registered trademark of its owner, used under license, and a division of 1832 Asset Management L.P.
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