Worried a stock-market bubble could affect your retirement portfolio? Here’s what you can do

Oh, hi and happy Halloween! There are few spookier things than a stock-market bubble. But are we actually in one? Let’s unpack it.

Fire burn and cauldron (stock market) bubble

If you haven’t been living under an investment rock, you’ve probably noticed the stock market has been on a tear lately. Some nervous investors are starting to wonder if it’s all getting a bit bubbly – but according to Goldman Sachs Research, there’s no need to panic just yet.

In a recent report, the firm says that while enthusiasm for artificial intelligence has been pushing up valuations for tech companies, the gains still reflect solid fundamentals rather than wild speculation, the kind that usually signals a bubble.

“The appreciation of the technology sector has, so far, been driven by fundamental growth rather than irrational speculation about future growth,” writes Peter Oppenheimer, Goldman Sachs Research’s chief global equity strategist.

Right now, the top 10 U.S. companies make up nearly a quarter of the global equity market, and eight of those are tech giants. That kind of concentration can be risky, but history shows it’s not always a precursor to crisis.

At different times, sectors such as energy and finance have also dominated the market without disaster following.

Still, earnings season can make markets especially jittery. That’s why investors should keep focusing on diversification, says Colin White, certified financial planner and CEO of Verecan Capital Management.

“It’s always important to make sure you’ve got good diversification in your portfolio,” Mr. White said. “In fact, it’s more important when you don’t think it’s important.”

He added: “America can be led very narrowly… if you’re an index investor, there’s different types of indexes, and you can get into equal weighted versus market weighted to reduce your exposure at a time like this.”

Ultimately, Mr. White says, investing is about building resilience. “You’re building a boat, and you want a boat that’s going to survive no matter what the weather is – because we’re just not accurate at predicting the weather all the time.”

The Calculator

Your walking speed could reveal how long you’ll live, researchers say. A McMaster University blog post notes that slower gait is linked to shorter life expectancy and improving your pace may extend it. If you go to mcmasteroptimalaging.org, you can find exercises to help improve your speed.

The Retirement Receipt

What one woman learned after inheriting 40 boxes of her aunt’s pottery collection

The beneficiary: Brooke, 60, a retired teacher in Toronto, inherited her aunt’s Majolica pottery collection, which included more than 40 boxes of colourful, ornate ceramics.

The problem: Insured for $65,000, the collection seemed valuable, but auction houses weren’t interested and most pieces sold online for under $50.

What she did with it: Brooke kept a few favourites and gave the rest away to family and friends. She even used a few pieces as urns for her aunt and uncle’s ashes.

What she learned: People think their collections are worth big money, but in this day and age, “they’re just … not,” she said. “I’ve come to terms that a lot of what we have is just stuff – even your special collection of whatever it is.”

Best of the Rest

💭 Financial trauma isn’t just about debt or bad spending habits. It can come from poverty, divorce or any life event that shakes your sense of safety, says Chantel Chapman, founder of the Trauma of Money Institute. Her program teaches advisers to spot shame-based money habits and approach clients with empathy, not judgment.

📜 Named executor for an estate but don’t want the job? You don’t have to say yes. If you haven’t started managing the estate, you can back out by signing a renunciation form or hire a trust company to handle it. Debbie Stanley of ETP Canada says, “Just because you’ve been named in somebody’s will doesn’t mean that you have to do it – and that sometimes gives people peace of mind.”

💸 Bills piling up? Try negotiating. Canadians can save by reviewing subscriptions, phone plans, and insurance regularly. Experts suggest calling providers for better rates, shopping around, and cancelling unused services. Even small subscriptions can add up to $200 a month, so it’s important to track every expense to spot areas to cut or negotiate.

💰 Finding it harder to save? In an era of cooling interest rates, take a look at this table on where savers can secure the highest savings account and guaranteed investment certificate rates.

Try This

🎃 Don’t you dare splurge on your Halloween costume this year. If it’s not too late, check out these Globe-recommended costumes that you can probably find in your closet. My personal favourite for the couples out there is Justin Trudeau and Katy Perry.