Kelowna Financial Advisor - Diversification in the market

Diversification in the market is not as effective as it was 25 years ago because today when the market takes a haircut every asset class gets clipped.

A perfect example of this was the recent tsunami in Japan. It happened on Friday and when the stock markets opened on the following Monday the TSX lost 162 points in the first minute.

Every stock across the board was down with the exception of 4.

2 were even and 2 junior oil stocks were up marginally.

Why should lumber products in western Canada, for example, get hit because of a disaster in Japan?
You would think the opposite should have happened. The fact is the market reacts as a whole and the result is, there is little safety in diversification in the traditional sense.

That does not mean that opportunities do not exist right now. That does not mean that we should avoid the market now. 

What it does mean is that you have to change your exposure to the volatility. We have solutions for this very issue! If you want more information on this topic contact me.

Dave Meidl
Kelowna Financial Advisor
Intent Market Solutions
www.intentmarketsolutions.com
250-575-3576
Investing with Purpose