Even the Good Years Have Down Times
While many aspects of investing in the equity markets may seem unpredictable, one constant remains: volatility. Just how common are market fluctuations? Even in years when the S&P/TSX Composite Index has performed well, we should expect substantial volatility. Over the past 40 years, despite average annual performance of more than 6 percent, the average intra-year decline was -15 percent (see graph below for performance since 2005), with corrections of 10 percent or more occurring more than half of the time and corrections of 15
percent or more occurring one-third of the time! Successful investing involves being prepared for both the market ups and inevitable downs. While it’s never easy to see portfolio values decline during temporary down periods, patience and perspective are important. Don’t let short-term fluctuations disrupt long-term financial plans.
The information contained herein has been provided for information purposes only. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information has been provided by J. Hirasawa & Associates and is drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) and the authors do not guarantee the accuracy or completeness of the information contained herein, nor does WAPW, nor the authors, assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances.
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