As the saying goes – May we live in interesting times.. And as another saying goes – What goes up must come down.. What does this mean for your investments and financial plans? Two things: Firstly, having a properly diversified investment portfolio strategy is critical for all markets. Secondly, engage a Financial Planner or Investment Advisor to help manage your financial plans and investment portfolios. Financial Planners and Investment Advisors are the voice of reason and financial professionals to help ensure your plans stay on track and timely adjustments are made.
Over the last number of years/almost a decade, stock markets and equities have seen a steady rise/increase. A sense of continued gains has crept into many investors mindset. A ‘can’t fail’ mentality has crept in. This has occurred at a time of historically low interest rates. We have also all read the press clippings of very pro business and stock market government and fiscal policies in the US and globally. Good things don’t last forever, so ensuring your portfolio weightings remain true to your longer term financial plans is critical. Regular/periodic adjustments are necessary to ensure your portfolios remain aligned.
After a prolonged period of low interest rates (great if you have a mortgage or loans), we have started to see some interest rate increases. There is a great likelihood of more interest increases in the coming year. Rising interest rates tend to temper stock market increases so expect some volatility in your equity returns. If you have variable rate mortgages, you may wish to review your options with a mortgage broker to minimize long term interest costs and increasing mortgage payments.
If changes in interest rates or stock market fluctuations and news headlines cause you sleepless nights, these are indications your investment strategies or portfolio composition may not be best suited for your risk tolerance or long term goals. Investing should be taken with a longer term view so shorter term fluctuations aren’t as detrimental. Regular reviews of your statements and with an investment advisor help ensure your plans stay on track.
These daily financial tips are designed to be short ideas covering different aspects of family and business finances. They are short pieces intended to provide information to enable individuals, families and businesses to make informed financial decisions. Not all tips will apply to every situation, but over the course of a year, most financial topics will be covered. Check in regularly and share with friends and associates

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