All of the uncertainty surrounding tariff threats may have some investors feeling jittery, but a local financial adviser says the first step is to ensure your asset allocation is right to weather the storm.

Larry Short of Short Financial, a branch of iA Private Wealth says for those concerned about their pensions or long-term investments, the first step is to call your financial adviser to better understand how much of your money is invested in the stock market vs bonds.

He says interest rates tend to drop in turbulent times, which then boosts the value of bonds.

“If you have 50 per cent of your money in stocks, and 50 percent in bonds, the portion that is in bonds have actually increased over the last period of time. And if these tariffs continue, it is more than likely that we’ll get the Bank of Canada cutting interest rates even more, which would cause those bonds to go higher.”

He says when interest rates rise, stocks tend to do better.