As markets have pulled back in the past and will do so from time to time, it is important to remember that downturns are routine – but they rarely feel that way.
We wanted to share two articles from RBC Wealth Management, one from yesterday and another from October 11, which highlight what is driving US equities and other markets (Canadian) lower and why investors shouldn't overreact.
Please follow this link for the first article entitled ‘U.S. equity selloff: Why investors shouldn't be shaken by the shakeout’
The second article ‘Coping with the mercurial market' dives into the current concerns pressuring equity markets.
We have been trending more defensive in our investment selections and recommendations to align with the recent market volatility.
I do hope that the information provided will give you a sense of reassurance. My team and I will continue to monitor the markets and will make recommendations that make sense going forward.
We are also continuing on with our process of gradually updating our mutual fund holdings that have matured through their scheduled fee ladder (low load) into the front-end or no-load version of the fund. There is no cost or tax implication to do this, and this process will clean up and simplify your portfolio as we move towards front-end funds as a part of new regulatory requirements.