The Globe and Mail reports in its Saturday edition that if you own Canadian or United States stocks, you are nearly certain to be sitting on big gains.
The Globe's Ian McGugan writes that the question now is how to keep those gains. While no one can predict when today's boom will end, high stock valuations and volatile trading in semiconductor and artificial-intelligence-related stocks indicate we may be nearing the end of this bull market.
To be sure, stocks are still performing well. Both Canada's S&P/TSX Composite Index and the U.S.-based S&P 500 Index surged to record highs last week.
Today, after five years of big gains, stocks are even pricier. Measured against underlying sales or long-term earnings or dividends, share prices are now at some of their most expensive valuations on record.
Goldman Sachs has pointed out the growing risks and the case for rebalancing your portfolio toward more sedate sectors.
Goldman says investors should look to real assets such as "infrastructure, prime real estate, energy, or gold." It also suggests diversifying into dividend stocks and value stocks as well as putting some of your money into foreign markets that are less AI obsessed than the ones in North America.
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