Investing in a Bear Market

Cash is king – have plenty of it

Avoid Rate Reset Preferreds

Avoid High Yield Fixed Income

Both US Treasury  and Govt of Canada bonds perform well in a recession. However with current yields so low there is not much upside.

Avoid Equity Index funds and ETF’s

Favour defensive equity sectors like Reits, Utilities and Telcos

Gold bullion performs well when the following occurs:

Falling Interest rates like we have today

During most previous economic recessions, gold outperforms benchmark equity indices

When real interest rates are negative like today, gold performs well

 

Posted in Blog Post.

2 Comments

  1. Hi Peter,

    I hope the family is well.
    Above: ” Favour defensive equity sectors like Reits, Utilities and Telcos”

    The REITS holdings should not be retail space given the mega-trend of online shopping or more recently curbside pick-up. COVID19 is a catalyst to this mega trend.
    Your opinion is always appreciated.
    Thanks
    Andre Albert

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