Episode 269: How Much of Your Portfolio Should Be in Canadian Stocks?

Welcome to Think Smart with TMFG, your go-to podcast for newsworthy and relevant financial insights for everyday Canadians. Hosted by Senior Financial Advisor Rob McClelland and Mike Connon of Assante Capital Management, this episode dives into an important question: How much of your portfolio should be invested in the Canadian stock market?

Rob and Mike explore a recent study by Vanguard that reveals Canadians are significantly overweight in domestic holdings. They break down the implications of having 50% of a portfolio in Canadian equities when Canada represents only 2.6% of the global stock market.

The discussion covers the historical context, the impact of limited diversification, and the risks associated with being overly concentrated in Canadian stocks. They also compare the performance of Canadian equities against global markets over the past decade, emphasizing the benefits of a diversified portfolio.

Learn what major pension plans are doing and get expert advice on balancing your portfolio with a reasonable allocation to Canadian stocks. Rob and Mike provide actionable insights on regular rebalancing and the importance of reflecting global diversity in your investments.

Tune in to understand why diversification is considered the 'free lunch' of investing and how it can help reduce risk and potentially improve returns. Don’t miss out on this informative episode that could reshape your investment strategy!