Uniquely balanced portfolio ‘a recipe for disaster’, says Forstrong CEO
“The playbook that has worked so well for the past decade – even the past four decades – will not work in the future,” he says. “For example, the typical balanced portfolio, roughly divided between North American stocks and Canadian bonds, is a recipe for disaster.”
They argue that in order to maximize opportunities and minimize risks in the new order, investors in Canada will need to shed their domestic bias. By casting a wider net, they stand to participate in the development of economies that promise to become new engines of global growth.
“China is a case in point,” Mordi says. “The country will continue to be the fastest-growing market for almost everything for the foreseeable future. China’s retail sales are larger than those of the US, and China is the largest market for nearly all consumer goods, from autos to personal electronics and luxury goods.” Is.
While some may portray emerging-market countries with the same broad brush as regions with high growth potential, it takes true vision to see the real gems. With an approach that highlights changes in investment regulations and trends from a top-down global macro perspective, Forstrong has the potential to guide investors in the right direction.
“We offer exposure to investment classes that are not well represented in a traditionally balanced or home-focused portfolio,” says Mordi. “And our track record suggests that this macro style should offer a return stream that differs very well from classic stock-picking approaches and even with them.”
