Resources are essential for economic growth, presenting a promising, albeit tricky, opportunity for investors. To learn more about this sector, the Financial Post recently spoke with Sightline Wealth Management for insight on how investors can use raw materials to potentially boost returns in their portfolio.
“Investors can find opportunities in the resource sector on their own, but that is often challenging because it requires a lot of expertise to be successful,” explains Sightline Wealth Management Senior Vice President and Investment Advisor Paul de Sousa. “Alternatively, they can lean on an advisor with experience in the sector—or who works closely with fund managers who specialize in resource investments.”
There are many reasons why Sightline Wealth Management recommends utilizing the help of an expert advisor when it comes to investing in raw materials. One reason is the vastness of types of raw materials, which encompasses everything from minerals like copper to commodities like livestock. There also are multiple avenues to get involved in the sector, ranging from exchange-traded funds (ETFs) to private market opportunities.
However, success in resource investing requires more than just expertise. It also requires patience. While this sector could currently be poised for an extended period of growth, investing in raw materials often calls for investors to endure frequent volatility and the possibility of minimal returns and falling prices. It is crucial to wait it out for the proper environment.
“And that’s really where the value of working with an advisor becomes important—especially during downward price trends,” de Sousa tells the publication.
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.
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