Yesterday was the official first day of Spring and it couldn’t have come any sooner. Even those of you who like winter (I do not identify with you on that one) seem to have had enough with this one…and while it doesn’t quite feel like spring yet, it’s drastically nicer than it was last Wednesday – ugh, remember that?
I commented about the weather to a random woman in the elevator on Monday and she said, “well, this is what winter is really supposed to be like - we’ve just been spoiled the last three years and people like to complain”.
I smiled because she was right and because she gave me an idea about what to write about this week.
There is always a reason to complain about the weather, just like there is always a reason not to invest. Looking back historically, there have been an abundant number of crises over the years that have caused stock markets to pull back and given investors an excuse not to invest, or consider pulling out.
Whether it was Black Monday in October 1987, the Tech Wreck of the late 90s or, more recently, the 2008–09 Financial Crisis and European Sovereign Debts Concerns, the world has demonstrated its resiliency, overcoming and moving forward after periods of crisis. Furthermore, stock markets have historically mirrored that resiliency, trending higher over time on their own and coupled with the hand of professional money managers, disciplined financial plans and rebalancing, those who stuck to their specific plans and maintained perspective were able to look past the fear and panic created by the media.
My friends at RBC Global Asset Management recently came out with an interesting chart plotting various periods of geopolitical instability to help demonstrate the importance of keeping a long-term perspective. The piece looks at how a $10,000 investment in the S&P/TSX Composite Total Return Index would have grown to $87,321 over the past 27 years, despite numerous economic and market events – and that’s without a plan! Imagine the difference patience and perspective can make, combined with a strategic wealth management plan aimed at helping you to keep more of what you’re earning and preserve your money for generations to come. That’s what I call awesome.
Enjoy the weekend.
Investment & Wealth Advisor
Chaaban Wealth Management Group