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09/28/22

Sightline Wealth Management in the Financial Post: How to Overcome Challenging Economic Headwinds

With high inflation, high government debt, rising central bank rates and market volatility, 2022 has experienced an unprecedented combination of economic headwinds. In such a challenging environment, investors may want to consider effectively optimizing their portfolios to safeguard their wealth from this seemingly perfect storm. The Financial Post spoke with Sightline Wealth Management for insight.

According to Sightline Senior Investment Advisor Paul de Sousa, he believes the first step investors should contemplate taking is portfolio diversification. “But we’re not talking about the outdated idea of diversification — a 60/40 allocation between stocks and bonds that was devised a half-century ago,” he explains. “Investors need to look more deeply than that to achieve diversification, especially now.”

In today’s current environment, commodities that always have a demand regardless of inflation levels and alternative investments are two areas investors may want to consider when looking for more portfolio diversification. Some of these asset classes may even go one step further by also potentially providing an additional income stream.

In de Sousa’s opinion, “Mortgages and rental properties are two separate asset classes that can provide income. Carefully curated private debt can also provide positive returns, as can certain absolute return alternative investment funds, with the objective to achieve positive returns regardless of overall stock market performance.”

However, when there are so many economic headwinds at work and a potential recession looming, investors should consider working with an experienced investment advisor to overcome these challenges.

De Sousa believes, “a volatile period such as this, it can be difficult to keep on top of all the market forces at work. An experienced active portfolio manager can provide the necessary insight to optimize and balance a diversified portfolio,” he tells the publication.

Click here to read the entire Financial Post article.

 

 

Important Information:  

Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors.

Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc. (“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds. 

 Sightline Wealth Management (“Sightline”) makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Sightline assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Sightline is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not indicative of future performance. Please speak to your Advisor regarding the suitability of information provided in this article for you. The opinions, estimates, projections and/or recommendations contained in this document are those of the author as of the date hereof.

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