Imagine boarding a flight from Toronto to London.
You hear the captain’s voice welcoming you aboard, explaining the estimated flight time and expected weather.
But behind that calm voice is a constant flurry of calculations, communications, and course corrections.
Pilots don’t just set the destination and cruise on autopilot.
They’re in constant contact with air traffic control. They monitor altitude, fuel levels, and weather patterns not only at the destination but throughout the entire flight path. And when turbulence hits, or worse, a storm, multiple navigation systems kick in to reroute the aircraft to smoother skies.
Their job isn’t just to get you there; it’s to get you there safely, even when the skies change unexpectedly.
Now imagine investing in today’s market without a reliable navigation system.
Far too many investors set their portfolios on a fixed path and assume everything will go smoothly… until a bear market hits.
Just like storms in the sky, market turbulence is inevitable. And without a strategy to course-correct, investors risk more than just a bumpy ride, they risk their long-term financial safety.
What the Current Market is Telling Us
Storm clouds are shifting. Investors need to keep an eye on market signals. Here’s what the current data is telling us:
- The S&P 500 dipped by 1% in April, with three consecutive months of declines, but recovered in May with a 5.6% gain, marking a significant gain.
- NASDAQ and Dow Jones Industrial garnered respectable gains in May too with 8% and 3.9% respectively.
- May marks the biggest month of gains since November 2023, breaking a long stretch of weaker performance and showing how market momentum can change unexpectedly.
- SIA Asset Class Rankings reflected this shift, with Cash falling from 1st to 4th place. Equity asset classes rose, driven by renewed investor confidence, recent gains, and a more positive market outlook.
- On May 23rd, Trump had “recommended” a 50% tariff on products from the European Union starting June 1st. Two days later, Trump announced that he would pause the additional tariffs on the EU until July 9th.
In aviation terms, the radar is mixed.
We’re not in a crash dive, but the air is choppy.
Forward-looking investors understand that the time to check your instruments isn’t after turbulence begins, it’s before.
Is Your Portfolio Ready for the Next Storm?
Smart investors don’t rely on guesswork. They design a portfolio that can adapt and steer through change.
What does an effective investment navigation system look like?
- It uses objective data to identify market shifts early
- It follows systematic signals rather than personal opinions
- It responds to real-time market flows, not outdated forecasts
The traditional buy-and-hold model, though popular, assumes that all market downturns are temporary and should simply be endured.
But as we saw in 2008, and again during the COVID-19 crash, waiting too long to act can erode decades of wealth in a matter of weeks.
Relying on subjective analysis or hunches is equally risky. Markets don’t care about predictions—they respond to supply, demand, and where capital is actually flowing.
The Smart Strategy of Aligning with Major Money Flows
Instead of forecasting the next big move, sophisticated investors are doing something different: they’re aligning with major money flows as they occur.
According to SIA Charts, this approach is more reliable because it doesn’t require guessing. It follows what investors are actually doing with their money, not what analysts think they might do.
Two key tools can help guide this approach:
- SIA’s Equity Action Call reveals the relative strength of equity markets compared to alternative investments like bonds, commodities, or cash. When equities fall behind in relative strength, it may be time to shift.
- SIA’s Asset Class Rankings highlight where institutional investors are leaning during volatile periods. These rankings don’t rely on opinions. They reflect where the money is actually moving.
Both of these are available in our monthly marketing update. Check the latest one for June 2025 here.
By tracking these indicators, investors can proactively adjust their portfolios, tightening or loosening the “brakes” when needed, rather than reacting too late.
Smart pilots don’t wait until they’re in the middle of a storm to adjust course and neither should smart investors. Markets will always have ups and downs, but those who stay alert, use objective tools, and align with real money flows are far more likely to arrive at their financial goal safely.
Looking to test the strength of your current portfolio against possible bear markets?
Let’s see it! Get a complimentary financial assessment here.