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How Diversification Has Helped You in May |
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Imagine you're an investor with a portfolio that is 60-per-cent weighted to stocks |
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and 40 per cent in bonds. Plunging stock markets this month will have hurt you, |
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but maybe not as much as you might think. Let's take a look using some of the |
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major stock and bond market benchmark indexes. |
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% Weighting |
% Return |
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Stocks |
In Your Portfolio |
in May |
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Canadian stocks (S&P/TSX composite) |
40 |
-5.8 |
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U.S. stocks (S&P 500) |
10 |
-11.2 |
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International stocks (MSCI EAFE) |
10 |
-12.9 |
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Fixed Income |
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Federal government bonds (DEX federal bond index) |
30 |
1.7 |
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Corporate bonds (DEX all corporate bond index) |
10 |
0.7 |
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Total portfolio |
100 |
-4.2 |
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Notes: |
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~returns are to May 20 |
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~returns for the S&P 500 and EAFE indexes are in U.S. dollar terms |
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Source: Globeinestor.com, PC Bond Analytics |