Tim Gendreau, CFP, RRC

Volatility Fatigue Is Real—Time to Be a Bit More Selective

Markets have been resilient, no doubt, but if you’ve been paying attention, you’ve probably felt it too: volatility fatigue is setting in. The U.S. is still a strong place to be, but the constant drip of political noise, policy pivots, and headline-driven swings is starting to wear a little thin with investors. Between the headlines and the geopolitical whiplash coming out of the U.S., where leadership seems to be playing policy Whack-A-Mole—it’s enough to make coffee nervous.

Even so, markets have rebounded recently, and sentiment has improved. But it feels like the right time to step back and reassess, not because anything’s falling apart, but because the landscape is clearly shifting.

One of the more noticeable changes this year has been the fading dominance of the “Magnificent Seven” [Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla]. For a long time, those names were doing most of the heavy lifting in the S&P 500. That’s changing. Leadership is starting to broaden, which is encouraging. It means the market isn’t being held up by just a handful of companies anymore.

At the same time, some investors moved toward equal-weight strategies to avoid that concentration, but those haven’t really delivered. Many ended up leaning too heavily into smaller, more volatile names, and as a result, underperformed the broader market.

When you look under the hood, whether you’re analyzing the S&P 500 without the MAG7 or breaking things down by sector, it becomes clear there are better ways to stay diversified without taking on unnecessary risk.

Right now, the areas that stand out to me are:

- High-quality businesses with strong balance sheets and consistent cash flow

- Value-oriented strategies that offer more attractive entry points and downside protection

- Sector exposure that can hold up through inflation, rising rates, or more political surprises

The U.S. market still has a lot going for it, scale, depth, and long-term opportunity, but it’s not as simple as holding the biggest names and hoping for the best. This is a moment for balance and intentionality.

I’ve seen markets go through plenty of cycles like this over the years. This isn’t about panic, it’s about making smarter decisions while everyone else is distracted by the noise.

Today, The Bank of Canada decided to keep things steady by maintaining the overnight rate at 5% and sticking to their quantitative tightening plan. Globally, the economy hit a bit of a slowdown in Q4, but the US managed to keep things surprisingly robust.

Here in Canada, our GDP in Q4 exceeded expectations, thanks to some strong export growth, even though the overall pace was a bit meh.

Inflation in Canada took a breather, cooling down to 2.9% in January. Shelter prices played a significant role; that being said, the expectation for inflation is to hang around 3% in the first half of 2024 before gradually easing.

The BOC decided to keep the policy rate at 5% because it is concerned about inflation risks, and its persistence is significant. It is looking for that sweet spot where everything—demand, supply, inflation expectations, wages, and corporate pricing—balances out.

Mark your calendar for April 10, 2024, when the next rate target announcement will occur. The Monetary Policy Report will also include a full-blown economic and inflation outlook.

People don’t hire a Financial Planner for his or her Photoshop skills (thank goodness, because I’d be out of business). People hire a Financial Planner because they’re looking for someone with experience to come alongside and help guide them to financial success. Like any journey in life, getting the right help, in the right place, at the right time, can be a tremendous advantage. Because let’s face it, simple, just isn’t that simple anymore.

https://youtu.be/4JILxxafqtg?si=ly4iII-3VDMZsKbd

In this video, I touch on the world of capital gains, explaining the difference between realized and unrealized gains in a simple, relatable manner. I demystify how Capital Gains taxes work in Canada, making it easy for you to grasp and make informed financial decisions. I highlight the importance of managing your taxable capital gains and offer some valuable strategies to minimize tax. Don't hesitate to contact me if you have any questions about what you see in this video or something in your financial situation. Having someone with experience in your corner that you can bounce questions or ideas off of, can be a tremendous resource. Because simple, just isn't that simple anymore.

Capital Gains Tax Explained In this video, Tim Gendreau, a Senior Financial Advisor with nearly 30 years of experience in the wealth industry, dives into the world of capital gains taxe...

It’s been a little over a year since I decided to step outside of my comfort zone to create some of my own video content. I can confirm that you actually can teach an old dog news tricks but its doesn’t come without a few speed bumps. big thanks to Chris and Gabe at Amber Pacific Studios for their efforts to try and make me look good and keeping it fun. Can’t wait to what 2024 has in store for us.

The Struggle is Real🙄🤣😂 It’s been a little over a year since I decided to step outside of my comfort zone to create some of my own video content. I can confirm that you actually can...

Hockey and investing compared in 60 seconds, All right, a bit of a stretch, but any chance I get to compare a couple of my favourite things 🥅🏒 + 📈📊 you know Im going to take it. Now, if I could just figure out a way to add Mexican food into this comparison, I’ll really have something.

MSMD Quickie #16 - Hockey and investing have a few similarities.

‘Tis the season, and with Christmas just around the corner and freshly minted New Year’s resolutions in your back pocket, ready to go, I thought this would be a perfect time to drop this video on how a digital detox can save you money in 2024. If you’re like me and the Amazon guy has been at your house so often you’re thinking of inviting him to Christmas dinner, you should probably take a couple of minutes out and check out this video.

5 Way to Save Money by Doing a Digital Detox Join Tim Gendreau, who is a Senior Financial Planner that is worked in the wealth industry for the past 30 years for another addition of Money See Money Do. ...

With the deadline to contribute to your RESP fast approaching in December I thought I’d post this quick 60 second video on all things RESP.

MSMD Quickie #2 - RESPs Explained in 60sec Everything you wanted to know about RESPs in 60 sec.Source Material:https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-educat...

In this short 60-second video, I touch on describe the financial term “Systematic Risk”, and the roll it plays in your portfolio. Being aware of it, and its impact can help you to manage emotions at a time when knee-jerk reactions can have a negative long-term effect on your overall portfolio.

MSMD Quickie #13 - Systematic Risk Explained in 60 sec Hi, welcome to another edition of Money See Money Do. In this very short video, I touch on systematic risk and the role it plays in your portfolio. Being awa...

When it comes to tracking down, your idea of a perfect planning relationship, deciding between local and virtual advising is key. Let your comfort with tech, service preferences, and desired expertise be your compass. The beauty of technology is It breaks location barriers, giving you access to the expertise you want for your unique financial situation.. No matter where you are, knowledge is a click away! Virtual advising opens doors to specialized skills , down the street, in the next town, or even in another province. At the end of the day, finding the right professional, that you trustto come alongside, and provide you with the advice you need to make great financial decisions is what’s important, whether that be face-to-face, virtually, or a combination of the two. If you have any questions about what you’ve seen in this video or questions about your own financial situation, don’t hesitate to reach out to me.

Does Your Advisor Need to be Local? Welcome to Money See Money Do! I'm Tim Gendreau, a Senior Financial Advisor with almost 30 years in the wealth industry. Today, we're exploring a key questio...

Squeeze the most out of your financial situation. Check out my “-See-Money-Do” YouTube channel for some juicy tips and strategies to help you navigate your unique financial situation.