Risk in investing isn’t one thing, it’s perspective. For Portfolio Managers, it’s numbers: volatility, drawdowns, and betas. For clients, it’s emotion: the fear of plans derailing or goals slipping away. This gap between data and feeling is where true wealth planning lives. At Westmount Wealth, risk is reframed not as something to avoid, but to understand and design around - through diversified behaviors, intentional cash flow structures, emotional guidance, and goal-based framing. The aim isn’t to eliminate uncertainty, but to translate it into resilience, turning market motion into personal progress, and ensuring every plan stays steady even when the waters get rough.

In Q3 2025, we saw a heatwave in equities driven by accelerating investment in artificial intelligence. We noted diverging central bank policies and explored key questions: Do we invest in gold? Do we have AI exposure? Are we in an AI-driven market bubble, and should investors be worried about investing near the top?

Two retirees with identical portfolios can end with vastly different wealth depending on whether markets fall or rise early in retirement. This sequence risk means portfolio withdrawals lock in losses, creating lasting gaps. Curious how preparation can narrow outcomes?

Can investors reliably identify skilled managers in real time? Evidence suggests not. Studies by Fama and French show that only a few outperform beyond luck, and even then persistence is elusive. SPIVA data confirms most managers lag benchmarks over time. The lesson is clear: focus on controllable factors instead.

Investing is often guided by assumptions that don’t hold up under evidence. Economic growth doesn’t guarantee market strength, past performance rarely predicts future returns, and buying at market highs is not as risky as many believe. Data highlights the value of patience and discipline. Continue reading to explore these investing realities.