Market Update October 2018
With last weeks’ sudden drop in the markets, we thought it would be very timely to reach out to you and address your concerns, ease your mind and emphasize the importance of meeting with us for your reviews so we can manage your risk level.
Why is the Market so volatile right now?:
Rising interest rates
Growing tensions over trade
Panic focussed, ratings-driven news headlines
Political uncertainty
These market downturns are short-lived and remember, they present buying opportunities and are one of the main reasons to evaluate your risk tolerance.
See the graph below from Franklin Templeton and note that even the drastic drop of 2008 only lasted a short while.
Selling all your funds is not the way to go. This is why I insist on mandatory reviews, to learn about your current life situation, your cash flow needs and to revisit your risk level. It is not just about how much money you are going to make, it is about managing your risk.
Of course, it would be great to get out when markets are dropping and then get back in, but with the speed that information is shared today, it’s virtually impossible to do that successfully.
This is why you must:
Click past the news on tv and ignore the newspapers, catch up weekly, not daily.
Understand that these market downturns are only short-lived compared to the upsideUnderstand your own situation – can you save more, can you spend less?
Do not panic and sell.
Remember: it’s not just about making money, it’s about managing risk.
This graph below illustrates the consequences of trying to time the market. Missing just a few good days can have a big consequence on your returns.
As we meet with each one of you for your review this fall, we have been and will be addressing the recent volatility and managing your risk.
It was great to see those we have already seen, we look forward to seeing those who are scheduled to see us in the next few weeks.
For those of you that are hiding and not booked in yet, you will be receiving an email from me shortly.
You can book your Investment and Portfolio Review right now, click this link.
If you are not a client but would like to see me for an Introduction and Discovery Meeting, click this link.
If you have any questions, give us a call and please remember we are always here for you.