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Five asset classes for successful investing
An asset class is…
A group of investments whose risk factors and expected returns are similar
Make sure you achieve proper asset allocation by balancing out that latest hot stock with a tried and true share
There are five major classes…
Fixed Income — The Old Faithful
Fixed income assets are by far the least volatile and you can expect an annual return or interest rate
In the event of a bankruptcy, bondholders are paid out in full before the company owners receive a dime
U.S. Stocks — The American Dream
The U.S. stock market is universally recognized as the largest and most liquid stock market in the world
Today, the country's stock markets are now significantly more correlated with other markets around the world
REITs — Acquire land
Despite recent dramatic corrections, Real Estate Investment Trusts (REITs) have actually performed better than the other classes in the past four decades
REITs are companies that own and manage real estate, and consistently pay a strong dividend
International Stocks — Go Global
International stocks include a diverse range: Europe, Asia, South America, the emerging markets, and Canada
Globalization has considerably blurred the line between U.S. and International stocks
Commodities — Materialize
Commodities cover energy, precious metals, base metals, and agriculture
They have the highest risk and poorest investment returns
But, if used well, they can play an important role in improving the risk/return profile of a diversified portfolio
Thank you!
Matthew Lekushoff, CIMAFinancial Advisor at Raymond James Ltd.Phone: 416-777-6368Email: [email protected]: www.matthewlekushoff.ca
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This has been prepared by Matthew Lekushoff and expresses the opinions of the authors and not necessarily those of Raymond James Ltd. (RJL). Statistics, factual data and other information are from sources RJL believes
to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. This is intended for distribution only
in those jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., Member-Canadian Investor Protection Fund. Insurance products and services products and services are offered through Raymond James Financial Planning Ltd., which is not a
Member-Canadian Investor Protection Fund.
