By Al Emid  

Toronto – Canada

 

 

 

 

Photography By..  Rob Sheridan

 

Al Emid has worked in communicating ideas and concepts since beginning his career at an educational television network in 1967.  He is the co-author and author of several financial books, most recently The Emid Report on Volatility 2019 available on all major book sites.

 

 

 

 

 

Chapter 12:

The News, The Headache & Your Portfolio

 

 

Investors can be forgiven for getting a headache while hearing, watching news and the parade of geopolitical crises.

 

As I write this column, bombings are rocking Kabul, Afghanistan’s capital, North Korea has fired new short-range ballistic missiles, the BREXIT fiasco remains unresolved in the United Kingdom, protests continue in Hong Kong, the tensions in the Middle East seem to intimate the possibility of war and the trade disputes continue between the United States and China.

 

And that’s just the major headlines.

 

We know that having a truly comprehensive investment portfolio means that we need investments outside of the country. However, that concept brings with it the challenge to identify which geopolitical crises have the greatest potential to have an impact. 

 

At time of writing, the trade dispute and tensions in the Middle East appear most likely to have at least some effect on investments. Unfortunately, neither of them appears near a resolution within the short-term. The likelihood of an amicable trade deal between the United States and China within a few months ranges around the chances of winning a lottery.  Meanwhile, the tensions in the Middle Eat continue rising and falling whenever a missile is fired or a drone is shot down.  While some analysts see a chance of outright war between Iraq and its allies Saudi Arabia, the U. S. and their allies, others (myself included) believe that tensions will remain high but that there will not be a regional war.

 

On your next meeting with your accredited financial advisor, ask whether your portfolio is exposed to any of these crises and, if so, the extent of exposure.  If the portfolio has been properly aligned with your risk tolerance, the advisor may suggest that no changes are immediately necessary or may suggest revising your asset allocation.

 

 

 





Comments are closed.

 

 


hey