Quarterly Commentary - April 2024
Dear clients,
Over the years, as we've discussed your portfolios, you've come to know that at the core of those conversations I prioritize three important questions- What's going on out there? What does it mean to your money? And what am I doing about it?
Lately we've been decidedly focused on the last bit, because back in December before closing out 2023, I sold a few positions in the Canadian and American equity strategies that were not contributing to the overall success of the portfolio, and again in February a few laggard stocks were swapped out for better opportunities along with one significant change made to our Fixed Income Strategy.
So, what leads to these changes? What are the triggers that ultimately result in a Buy or a Sell in your portfolio? After all, every change should be executed with the intention of reducing risk or capturing opportunities for improved performance- that's the "why". Simple. The "how" is a little more work.
"What's going on out there?" is the macro question that establishes current economic and geo-political context. Pandemics, wars, elections, tax policy- all these major forces and others dictate the landscape enterprise must navigate to succeed.
"What does it mean to your money?" considers what sectors and companies are most likely to adapt and thrive under current conditions and which will suffer disproportionately. Technology for example tends to do well when interest rates are low or heading lower. Industries dependent on complex global supply chains can suffer under policies favoring deglobalization, and so on...
"What am I doing about it?" points to all the activity that guides me toward a Buy, Sell, or Hold. It's really a not-so-secret-sauce that amounts to a great deal of reading from the likes of Barron's, The Wall Street Journal, and Bloomberg- not to mention consulting with some of TD's world class analysts. Sometimes this work leads to immediate action. Otherwise, it culminates in a seasonal deep dive, inviting input from fixed income analysts, and specialists in Canadian and US equities, focusing on sector allocation, fundamental and quantitative analysis. I lean on these sources as part of an ongoing process to make sure our portfolios are exposed to the best opportunities, in the right sectors, in ideal proportions.
And though we can be proud of our long-term performance, we must recognize that no investment strategy achieves absolute perfection in this ever-changing world. It's a process of constant monitoring, profound analysis and careful selection that results in renewed strategies, designed for all seasons.
With that, and the arrival of spring, let me wish you continued success in this process of investing for life.
Best regards,
Stephen Dupuis
The information contained herein has been provided by Stephen Dupuis Wealth Management TD and is for information purposes only. The information has been drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual's objectives and risk tolerance
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