Rebalance!
The U.S., Canadian, and Rest of World equity markets are down around 30% in less than a month. This is a quick and violent decline. Quick and violent declines happen and will happen again. Meanwhile, Canadian fixed income is down around 6.5% in the same period. Canadian fixed income has outperformed Canadian and global equity. What is the proper response? We know what we are supposed to do. We rebalance out of fixed income into equity. Let’s perform a little simple arit