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How will the Ukrainian invasion affect the client portfolio?

“Right now, it’s a lot of noise, but these are the same businesses they were last week, and I think it creates incredible opportunities for investors who have balanced portfolios and take advantage of these opportunities.”

Rob McClelland, Senior Financial Advisor, The McClelland Financial Group of Asante Capital Management Ltd., Thornhill, Ontario:

Rob McClelland notes that his clients’ portfolios are between 50% and 90% equities, with an average of 70%, which they rebalance daily. Therefore, his firm does not strategize around market correction.

“I am not a believer in what you can do. All the evidence I have seen in my 30 years is that market timing does not work around such events,” he said. With the rebound, anyone who had “stepped to exit” earlier in the day would have already turned capital down and triggered capital gains taxes, then found it difficult to get back and make up for the loss.

“If you were going to exit, the right time would have been the end of the year, at which time there was talk that Putin might attack Ukraine,” he said, adding that most people don’t have the stomach to go back when things really go down. Huh. Furthermore, he said history has shown that markets generally rebound and correct because “we are investing in companies that produce goods and services, and they will continue to produce those goods and services.”

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