Options Strategy for Diversified Canadian Equity Portfolio
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Themes
Financial Risk Management, Canadian equity portfolio, options strategy, rising interest rates, dividend-paying stocks, green investments, green bonds, Medtronic, Brookfield Asset Management, Aleafia Health
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Abstract
Considering the current economic environment and future projections, an options strategy is presented for a $100,000 diversified Canadian equity portfolio.
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[...] In fact, financial values, which include banks, insurers, and asset managers, account for more than 30% of the S&P/TSX composite index and lagged the benchmark index in 2019, a phenomenon that has only occurred twice in nine years, according to Bloomberg data1 as we can see in the document below : Therefore, an investment in a diversified Canadian stock portfolio of $100,000 should be based on companies with solid profits and not focus on banking-related assets and weight its assets around the pharmaceutical and healthcare sector. Thus, the investment would be directed towards each of these actions : - ETSY (ETSY) - Online marketplace for handmade products. - Aleafia Health (ALEF) - Medical Cannabis. - Brookfield Asset Management (BAM) - Asset management company. [...]
[...] Financial Risk Management Question : Considering the current economic environment and your projections for the future economic environment, present an options strategy for a diversified Canadian equity portfolio of $100,000. Considering the economic environment: good season for Canadian equity products, excellent year 2019 for US indexes and - to a lesser extent - European ones, as well as a change in perspective in the monetary policy orientation of the Bank of Canada, following the Fed and the ECB: one can fear a perspective of rising interest rates. [...]
