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The decline of the loonie and turmoil in emerging markets call for more defensive investment strategies.
The decline of the loonie and turmoil in emerging markets call for more defensive investment strategies.
(Richard Drew/AP)

Patience and defence the right strategy for investors

I’ve been warning about the growing risks to the Canadian dollar, China, and resource stocks for about a year and advocating conservative U.S.-denominated assets. Now, with the emerging markets growth story crumbling, and the greenback surging past the loonie, the question is what next? In looking for the next big investment theme, the biggest danger is impatience. Uncovering the next market sector that outperforms will be of little use if the stocks get swamped by the death of the previous era’s dominant themes.