A local financial advisor says now is the time for investors to take advantage of the declining interest rates.
Aaron Ruston with Purposed Financial notes he’s been doing quite a bit of diversification with his clients, adding one area which really benefits from that is the bond market.
“Whether it’s large corporate guaranteed bonds or government bonds held within your investment portfolio. As interest rates are driven down by, whether it be the feds in the U.S. or the Bank of Canada here, as that’s driven down, the bonds inside your portfolio start to do better. Things that are maybe still an asset, classes that aren’t coming back quite as quickly, you have to be aware of these things and move to sectors of a portfolio that can take advantage of these times of lowering interest rates and lowering inflationary rates as well.”
Ruston mentions that now is the time for advisors to be proactive.
“Advisors, if I can say, get lazy. You have to be proactive and make sure your clients are doing well and making money. Right now a portion of the portfolio, we’re moving to asset classes such as bonds and such things to take advantage of the declining interest rates.”
In terms of what’s hot right now, Ruston says he’s a big equity player.
“I like equities, even though they take a bit of a rollercoaster ride overall. The U.S. right now, with their debt ceiling discussions and all of that, has shown some volatility over the last little bit. When it comes to equity markets, I like things like bank positions.”
Ruston says banks make money, whether the markets are going up or down.
“Why would I invest in their GIC type of positions, when I can buy directly into their stocks.”