With everything that’s going on in the news today the media may cause investors to react emotionally and lose site of the bigger picture and question their investment strategy. Over the last 30 years current events have left investors on the sidelines. Historically, individuals who invest regularly in a diversified portfolio, and stay invested for the long term, have typically benefitted.
Staying invested pays off. Even if you just compare the S&P/ TSX composite during this
30-year time period, it gained approximately 8.4% a year. 21 of those years had positive returns. *
Year S&P/TSX* World Headlines
2000 7.4% Tech Bubble Burst
2001 -12.6% Attacks on World Trade Center in New York City
2002 -12.4% WorldCom Goes Under, Largest U.S. Bankruptcy to Date
2003 26.7% SARS Outbreak President Bush Declares War on Iraq
2006 17.3% New Fed Chair; Greenspan Replaced by Big Ben
2007 9.8% Global Banks Start Reporting Billions in Losses
2008 -33.0% Subprime Mortgage Crisis: Bear Stearns, Lehman Collapse
2009 35.1% Chrysler and General Motors File for Bankruptcy U.S. Unemployment Reaches Highest Level Since 1983
2010 17.6% Greece ‘Contagion Fears’; Flash Crash
2011 -8.7% U.S. Debt Downgrade; Eurozone Debt Crisis Japan Earthquake Triggers Deadly Tsunami
2012 7.2% Cyprus Banking Crisis Commodities Boom Ends
2014 10.6% Crude Awakening; Oil Price Collapses
2015 -8.3% Crude Reality; Oil Prices Remain Low China’s Economic Slowdown
2016 21.1% U.K. Votes to Leave EU Donald Trump Wins U.S. Presidency
2017 9.1% U.S. Tax Reform; Trade Uncertainty
2018 -11.64% U.S – China Trade War
2019 19.13% 10 Year Bull Market Run First case of coronavirus (COVID-19) reported.
2020 5.60% Covid-19 Pandemic; Joe Biden Wins U.S. Presidency
For illustrative purposes only *The S&P/TSX Composite Index percentage total return per calendar year (August 31, 2021).
The information contained herein has been provided by TD Asset Management Inc. and is for information purposes only. The information contained herein has been provided by TD Asset Management Inc. and is for information purposes only. The information has been drawn from sources believed to be reliable.
So in a nutshell, markets are manipulated, whether that may be from current events, economic health of the companies your invested in or how the country is performing on the world stage. Fluctuations are intimidating and there’s no way around it. The best we can do as investors is, stick to the plan and follow these best practices.
1. Don’t Panic
2. Don’t try and time the market
3. Have a diversified portfolio
4. Reduce your cost. F Series funds are a great start. (refer back to Tammy’s Blogs week 1)
Remember, a long-term approach to investing helps you to stay focused on your goals. If your goals or circumstances change, turn to your investment professional for guidance and to help update your plan if needed.
As I mentioned earlier, I am super happy to be working with McLeod Mooney Financial Planning. They are an experienced and locally owned financial services firm specialized in managing Group RRSPs, Pension Plans as well as full-service Family Financial Planning. Serving British Columbia, Alberta and Ontario, we are honored to provide direction and guidance to plan sponsors removing the CAP Guidelines liability from their organization. As well as third party, nonpartisan, certified financial planning, and advice to all our valued clients.
During my career I have loved working with all my clients, I miss you all and I would love to hear from you! I can be reached in multiple ways.
- The office 604-428-5192
- Directly on my cell 604-340-4352
- Physically in the office which is at #101 – 11950 80th Ave Delta BC V4C 1Y2
- Or via email firstname.lastname@example.org
Disclaimer: The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as investment, financial, legal, accounting or tax advice. Please obtain independent professional advice, in the context of your particular circumstances. This article was written, designed and produced by Tammy Dorais for the benefit of Tammy Dorais who is an Investment Funds Advisor at McLeod Mooney Financial Planning a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities.
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