Hot Sheet: Investment insights from BNN Bloomberg’s market experts for March 25

Building or rebalancing your portfolio and wondering what investments to consider next? Here’s what leading experts featured on BNN Bloomberg say investors should consider adding and dropping from their portfolios today.

Here’s what leading experts featured on BNN Bloomberg say investors should consider adding and dropping from their portfolios today.

The materials group has been the worst performer in Canada and elsewhere this month as the risk-off playbook resulted in selling winners like gold and mining stocks to cover losses from other parts of the portfolio.

If anyone thinks that policy sensibility is returning to the U.S. between now and the mid-terms needs to re-watch some Charlie Brown videos. I think the retracement offers up an opportunity to play either gold bullion through an ETF (preferably hedged back to CAD) or via a large-cap Canadian producer.

This isn’t a strong “drop” but more “taking some money off the table”. Exchange Income Fund is sporting a 25 per cent YTD advance, even with the 5.5 per cent pullback this month. Even with its diversified portfolio of companies, it will still be vulnerable to a deterioration in economic conditions with or without higher interest rates. Dividend yield has compressed to below three per cent with the stock’s rise and cash flow growth doesn’t allow for a faster rate of dividend growth to compensate.

People should be invested in a globally diversified, style diversified, asset class diversified portfolio that is built to withstand the kind of volatility we are seeing now.