—Linda Kerley, Waterloo, Ont.
A: My standing Starbucks order is simple but boring: “Tall, mild, no room.” My approach to asset allocation is equally simple and boring: choose one asset mix and stick with it unless circumstances change. It’s extremely difficult to time markets successfully, so focus on what you can control, which in your case is the asset mix.
For the record, some would argue international equities are cheap compared to Canada’s. But that’s not the point. If you’re currently overweight in Canadian equities, you should rebalance now and return to your target allocation rather than wait for valuations to be more favourable.
Bruce Sellery is a frequent guest on financial television shows and author of Moolala. Do you have your own personal question? Write to Bruce at email@example.com.