Last year was a year that stood witness to the rise of the COVID-19 pandemic, a nationwide lockdown, and countless economic and market impacts. As investors in the new year, it is important to reflect on the past and prepare for what is to come. As part of this process, Investing News Network recently spoke with Sightline Wealth Management Senior Vice President and Investment Advisor Paul de Sousa to learn how Sightline helped guide clients through last year’s volatility and what might be in store for investors in 2021.
According to de Sousa, while no one could have predicted the pandemic or its level of impact, Sightline’s strategy to always plan in advance ultimately played a key role in reducing negative impacts for clients.
“The portfolios were set up in such a way that it minimized downside capture,” explains de Sousa. “That’s the essence of how we set up portfolios – we’re not so concerned about capturing all of the upside; what’s most important is not capturing all of the downside.”
Now, with 2020 finally in the rearview and an optimistic outlook for 2021, de Sousa emphasizes that it is still important for investors to hedge their portfolios and ensure that they are prepared for all outcomes, not just positive ones.
In terms of gold and where this precious metal may go this year, de Sousa says that while it could face some price weakness in the short term, he would view that simply as a preferential buying opportunity. Regardless of gold’s daily movements and prices, de Sousa views gold as a long-term asset that should be viewed as a store of wealth.
“Could it dip below $1,700 (per ounce)? I think there’s a small probability of that,” de Sousa tells the network. “But again, this is such a long-term investment. I’ll repeat myself here – just do not concern yourself with the price on this. It’s tangible wealth, it has a long, long history of money. Acquire it, worry about everything else in (your) portfolio.”
In addition to his 2020 reflections and 2021 outlook for gold, Investing News Network also turned to de Sousa for his thoughts on other noteworthy topics such as GameStop, Bitcoin and the importance of not letting the fear of missing out guide investment decisions.
Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors primarily through fee-based accounts.
Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc. (“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds.
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