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We’re diving into a timely topic: tariffs, inflation, uncertainty, and how to prepare your portfolio for what’s ahead—without getting lost in the noise. This is not about politics. It’s about smart investing and long-term thinking.

The Impact of Tariffs
Tariffs act like taxes on imported goods, making them more expensive and potentially fueling inflation. While they can protect specific industries, they also raise costs for businesses and consumers, making long-term planning harder for investors.

Market Reactions
Despite headlines, the market isn’t in a bear territory yet. Volatility and uncertainty are high, but history has shown that even major events like wars and financial crises become mere blips in long-term investing.

Let’s Trump-Proof That Portfolio!

Step 1: Revisit Your Asset Allocation

• Think in percentages, not dollars. A $100K drop on a $2M portfolio is just 5%.
• Go for safety over yield. High yield can often mean high risk.
• Keep it simple. Avoid over-complicating your strategy.
• Consider transferring risk: delay CPP/OAS, look into annuities, or diversify income streams.

Step 2: Diversify Wisely

• Look beyond sectors: examine sub-sectors and business models.
• Watch for overlap: some companies may be listed under different sectors but face similar risks (e.g., Meta & Alphabet = Tech or Communication?).
• Be wary of companies interconnected in ways not apparent by sector labels (e.g., Magna & Granite).

Step 3: Reduce Unnecessary Risk

• Don’t chase stories. Stick to quality stocks with strong fundamentals.
• No room for guessing games. If it doesn’t have a clear, robust business model, cut it.
• Quality matters more when uncertainty is high.

Step 4: Use the Dividend Triangle

• Focus on the 3 metrics: Revenue, Earnings per Share, and Dividend Growth.
• Trends over 5-10 years help you avoid falling in love with hype stories.
• It helps you act with confidence, not emotion.

Step 5: Stay Confident, Not Perfect

• You won’t always be right. That’s okay.
• Confidence comes from following a straightforward and proven process.
• Investing is a long-term game—embrace the ups and downs with structure.

Bonus: Canadian & U.S. Stocks to Weather the Storm

• Canada: Franco-Nevada, Stantec, Dollarama, Fortis, Hydro One, Canadian Natural Resources, Enbridge, TC Energy, Pembina
• U.S.: Mastercard MA, Visa V, ADP, Microsoft MSFT, Walmart WMT, Costco COST, Ross Stores ROST, TJX

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