2019 begins as 2018 ended --- with volatile markets. Triggers for market volatility can come in many different shapes and sizes such as: policy uncertainty in Washington, earnings reports, geopolitical unrest, etc. The list is endless.
Market swings are never fun and can rattle the most seasoned investors. But volatility is normal and is part and parcel of investing. It can never be eliminated. All we can do is manage it as best we can using various strategies that have worked in the past such as:
- Cash Wedge – ensuring funds needed for short term needs are kept in cash, savings &/or GIC's
- Diversifying geographically, between various asset classes and different management styles
- Keep in mind your time frame. Are you focusing on day to day or month to month returns? Or are you investing for 5, 10, 20, 30 year time frame.
- Avoid trying to time the market. You could get lucky once or twice but it's impossible to consistently predict when the good and bad days will happen. Not only can this negatively impact your returns, it can also be very stressful.
In the days ahead, we will be hearing more from our fund managers. If you are interested in receiving some of this information as it comes in, please let us know.
Or if you would like to discuss further, do not hesitate to contact us.
