It Is Getting Noisy Out There!

The $US is making new highs:

• The Euro is at its lowest point vs.  $US since 2003:

• Strong employment data from last Friday is driving the $US as market participants shift their expectations to a sooner rather than later interest rate increase from the Fed.
• Combine this with Euro Zone Quantitative Easing and it is a potent combination.
• In the short-term this is going to drive volatility to higher levels.
• Expect "noisier" stock and bond markets.

• Naturally, this is of course my cue to remind us all of our longer term goals and objectives.
• We can all easily be distracted by short-term "noise", but it it is paramount that we do not deviate from our long-term plan.
• My portfolio objective is to get a 7-8% average annual return over multiple years.
• If I don't add any additional money, what I have now should double in approx. 10 years (Rule of 72).
• If I can add new $$ on a regular basis, the compounding impact will be accelerated.

• Using market short-term volatility to our advantage, there may be some buying opportunities that develop and we can add new $$ to our portfolio.
• So let's embrace volatility as an opportunity and not be fearful of it.
• For if we have a balanced and diversified portfolio, over the long-term, the "noise" is just that.

The views expressed are those of the author, Scott Tomenson, a Raymond James Financial Advisor, and not necessarily those of Raymond James Ltd. It is provided as a general source of information only and should not be considered to be personal investment advice or a solicitation to buy or sell securities. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor's circumstances and risk tolerance before making any investment decision. The information contained in this blog was obtained from sources believed to be reliable, however, we cannot represent that it is accurate or complete. Raymond James Ltd. is a member of the Canadian Investor Protection Fund