Worried about the impact of tariffs and market volatility on your portfolio? Watch below or click here to view this 7-minute video from Maili as she explains how tariffs affect the economy and global markets, provides timely insights about the recent market volatility, and why its important to remain invested with a strategic and resilient approach.
Market Volatility
Markets may experience near-term volatility due to tariffs and Trump headlines, as they introduce uncertainty around economic growth, and around government policies and decision-making. However, this period of uncertainty can also present opportunities for investors and businesses to adapt and innovate, ultimately strengthening their long-term prospects.
For investors, it’s crucial to stay focused on the bigger picture. We have been through challenging times before, and every time “it feels different this time”! History has shown that markets can rebound swiftly once clarity is restored. A prime example is the pandemic in 2020, when markets recovered sharply within a year despite initial steep declines, and despite still being in a pandemic a year later.
By staying invested during these challenging times, investors can benefit from these rapid recoveries and avoid missing out on potential gains that often occur when fear is at its peak. Staying the course can significantly enhance long-term investment returns, even though it may be uncomfortable in the moment.
See the chart below that illustrates the cost of trying to time getting in and out of the market. Take note of when these “best weeks” happen— typically when fear is greatest.
Despite the current market pessimism, we are confident that long-term investors will continue to be rewarded for staying invested the market and sticking to their holistic financial and investment plan.
By following a sound investment strategy and staying disciplined, we can together help you navigate these uncertain times and position your portfolio for long-term success.
If you have any questions about how this relates to you or your investment portfolio and financial plan, please give us a call at 778-655-2410 or email us at thewonggroup@wellington-altus.ca
Sincerely,
Maili Wong, CFA, CFP, FEA
Senior Portfolio Manager & Senior Wealth Advisor
Wellington-Altus Private Wealth Inc.
Board Director
Wellington-Altus Financial Inc.
