Many of you have likely noticed the recent market volatility. To keep my clients well-informed, I’ve reviewed commentaries from numerous economists and portfolio managers in the past couple weeks.
Having been in the financial industry since 2005, for nearly 20 years, I’ve seen my fair share of market downturns.
For example, we experienced the 2008 Financial Crisis, triggered by the U.S. housing market collapse, followed by the European Debt Crisis from 2010-2012. And, of course, the COVID-19 pandemic in 2020 brought about one of the most severe economic disruptions in recent history.
In recent years, we’ve also faced challenges like the Russia-Ukraine War, rising interest rates, and a global surge in inflation.
These are just some of the countless negative events we’ve weathered over the years together. This isn’t the first time we’ve seen a market correction, and it certainly won’t be the last.
While they have caused temporary setbacks, history shows that the market tends to recover and often reaches even higher levels over time.
As a financial advisor, I’ve consistently shared these core principles with my clients over the years, and I firmly believe they still stand the test of time:
- Keep Perspective: Downturns are normal. Focus on the long-term results.
- Get a Plan You Can Live With: Ensure your plan is sustainable through market ups and downs.
- Focus on Time in the Market, and Don’t try to time the market: Focus on staying invested as compound growth works in favor of long-term investors.
- Invest Consistently: Even during tough times, a disciplined investing approach tends to pay off in the long run.
So what is an investment that has stood the test of time?
One option you might consider is the Fidelity Global Growth Portfolio: <- Clickable link
Chart is generated from the Fidelity.ca website. Please refer to the fund facts for exact details.
- This is a well-diversified portfolio with exposure to Canadian equities, US equities, International Equities, Commodities, and Fixed Income
- It consists of some of the best fund lineups from Fidelity
- Excellent long-term track record:
- Compound annualized return of 9.59% over the past 15 years (As of July 31, 2024)
- This is an average figure; some years were higher, some were lower, both positive and negative
- Risk rating: low-to-medium
To put things into perspective, an initial investment $10,000 on April 19, 2007 would have grown to $28,850 by Aug 9, 2024.
Please note, the above information is for general purposes only and should not be considered specific investment advice. We should review your investor profile to determine suitability. Performance is not guaranteed, and past performance may not repeat. There are investment risks involved.
When it comes to investments, it’s important to build a portfolio that is suitable according to your objective, risk profile and time horizon. If you are looking for investment advice from a trusted professional, you may CLICK HERE to gain a better understanding of our investment planning process.
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 newsletter was written, designed and produced by Samuel Li for the benefit of Samuel who is Advisors at : SamuelConsultant.com is 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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