The Globe and Mail reports in its Saturday, Aug. 29, edition that last week's volatility is a reminder to investors to pay more attention to risk. The Globe's Rob Carrick writes in the Personal Finance column that diversifying
with stocks and bonds
is the best risk-reduction strategy,
but some investors are looking for
more. Mr. Carrick says they may find some answers
in the Pay Attention to Risk (PATR) strategy, an attempt to find a livable
balance of risk and reward. The PATR strategy is the result
of a conversation Mr. Carrick had as the
stock markets tanked last week
with Morningstar CPMS manager Rob Davies. Mr. Carrick asked Mr.
Davies if he had anything for
investors who pick their own
stocks and want something that
holds up well in market corrections.
What Mr. Davies came up with was
a list of Toronto-listed stocks
that have beaten the general
market in the past with less risk.
Stocks
that score well in a variety of measures
that indicate a degree of resilience
in a down market, by Mr. Davies's reckoning, are Fortis, National Bank of Canada, Great-West Lifeco, Home Capital Group, Canadian Utilities, Leon's Furniture and North West Company.
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