Volatility and the Canadian Market (S&P/TSX)

Stay Focused, Stay Invested, Stay Diversified

There is no question that you have heard a lot about the recent volatility the Canadian market has seen in the last couple of months, and specifically the month of September.

I can say that I understand your fears and reservations when it comes to our current Canadian and Global economies. I am still confident however in market trends and the fact that with every great fall comes a great rebound, historically speaking.

Your Take-Away: Considering the overall “gloom and doom” we are reading about or hearing about every day recently, I wanted to provide you with a great education piece entitled “Stay Focused, Stay Invested, Stay Diversified”. This document speaks specifically to what we saw in early January when the S&P/TSX market tumbled a total of 605 points and then recovered with a rebound of 508 points the very next day. It also speaks to the importance of staying focused and staying invested by demonstrating the result on a portfolio if you were to miss the best 10, 20, 30, 40, 50, and 60 days in a ten year window.

Rest assured that I personally understand the feeling of watching my own portfolio take a hit over the last few weeks and months. I urge you to take a look at the document attached and ensure that you don’t make any rash decisions. Simply put, stay the course and I am confident you will reap the rewards.

Until next time, have a Wonderful Wednesday!

Chris

Last Week was Rough on the Canadian Market

It is no longer news that last week was a rough one for the S&P/TSX.

In fact, the Canadian Market fell over 900 points within the four trading days that the market was open which just happens to be one of the worst single weeks in Canadian history. Although we avoided a recession in the second quarter of this year by only 0.3%, it is clear that we are definitely still hurting in terms of our market strength.

Your Take-Away: The results of last week are not easy to swallow, especially if you were like many others and saw your investments take a pretty steep fall. Despite the fact that I work within the financial world, it’s still not fun or easy to see my portfolio fall the way it has over the last few months. That said, I also believe that although we are probably not at  the bottom of this fall, we have the chance to buy stocks and funds while they are on sale and God willing, just before they rebound. I’m not telling you to invest everything you have in the market, but it may not be a bad idea to take advantage of “Dollar Cost Averaging” and start getting back into the market in smaller amounts over the next few months.

Keep this in mind. Warren Buffet once said that he “sells when others are buying, and buys when others are selling”. I know that’s a paraphrase, but the concept is crystal clear. It’s up to you what you do, but I’m definitely taking advantage of this market as opposed to running from it.

Until next time, have a Magnificent Monday!

Chris