Many people believe their portfolio is diversified because they hold numerous mutual funds. They do not realize that most of the companies they hold overlap and are highly correlated, resulting in very concentrated portfolios that are actually higher risk.

I build conservative, carefully allocated portfolios with income investments such as bonds, preferred shares and GICs to provide protection in times of market downturn. The remainder is composed of a custom blend of quality Canadian, U.S. and global equities to provide long-term steady growth. For more risk tolerant investors, I may also introduce specialty equities into their asset mix to enhance their potential returns, such as resources, emerging markets, healthcare, technology, and other rapidly growing sectors.

A common misconception is that volatility just refers to downward movement in the market. It actually measures both downward and upward fluctuations. Stocks that increase dramatically in value may also fall significantly and quickly, leaving you with the same or less money plus the stress factor. Over the long term, investors prefer a modest but reliable return of 8%-10% every year,* rather than 20% gains one year followed by 20% losses the next. The emotions associated with market volatility are simply unnecessary. My prudent and conservative approach gives you strong downside protection as well as a good night's rest.

*Percentages are for illustration purposes only and are not to be construed as actual rates of return.