Global and financial market developments continue to make headlines with the U.S. producing positive economic results and emerging market equities showing the potential of a promising future. Meanwhile, growth in China remains sluggish and Japan’s workforce continues to shrink. With corporate earnings season now in full swing as well, investors know they need to keep an eye on their investment portfolios.
A BMO study has found that eight-in-ten Canadians plan on taking a summer vacation. When they do, they may find it a challenge to stay current with the financial news of the day. It can be even more difficult to keep an eye on specific investments.
“Although life traditionally slows down for many Canadians during the summer months, their portfolios still require monitoring to ensure they are on track to meet their financial goals,” said Larry Moser, Regional Sales Manager, BMO Retail Investments. “The markets don’t take a vacation, so it’s important investors stay on top of the latest financial trends and remain aware of how these may impact their investments.”
BMO offers the following tips to help ensure that market forces do not get in the way of a worry-free summer vacation:
— Check-in ahead of time: Prior to heading on vacation, schedule a quick
drop-in with your financial advisor to confirm that your investments are
on track and that he or she is aware of your vacation plans. You can
also ensure that your advisor knows to contact you in the event of
potentially significant market events.
— Do not panic: As hard as it may be, try not to overreact and make
impulsive moves with your investments – especially equities.
— Seek out expert opinions: In order to gain a better understanding of how
an event will impact the financial markets over both the short and long
term, seek out reliable sources and trusted and respected experts who
are in a position to assess the situation accurately. This should
include speaking to your financial advisor, who can ensure your
portfolio is meeting your financial goals and reflects your risk
— Re-examine your portfolio: Investment portfolios should always be
reviewed at least once a year. The slower summer months can be a good
time to examine your portfolio for diversification and market exposure.
Keeping your portfolio balanced, with a mix of equities, bonds and cash,
can help protect it from market fluctuations.
— Look forward: Think about arranging a meeting with your financial
advisor following your vacation to have a more in-depth discussion about
your portfolio. The meeting may uncover new opportunities for you to
consider for the rest of the year.