The bull market that began in 2009 was the longest running bull market in history. On March 9th, 2019, this bull market had celebrated its 10 year anniversary.

The S&P 500's closing price on March 9th, 2009 was precisely 676.53. On December 19th, 2019, the S&P 500 closed at 3205.37. That represents around a 374% return in a 10-year period. Not bad right?

For hundreds of years, this is how capital markets have behaved. Every few years we see tremendous buying opportunities, such as the ones we are witnessing these days.

March 23rd 2020 was the lowest day in this current bear market. Since then, markets have gone back up and have returned approximately 30% if you would have invested in March. The markets have risen despite extremely negative economic data coming out.

One of the reasons for this is that capital markets are leading indicators to the economy. The selloff that occurred in March was anticipating these numbers and institutional investors had factored that in for earnings and profit estimates. Several academic studies that have analyzed previous recessions’ data conclude that equity markets have tended to recover one to two quarters before the economy does.

This does not mean that we are out of the woods yet. We may retest the lows or we may even pierce through the March bottom, or perhaps neither will occur and we do continue on this slow and volatile rise of stock markets. Either way, valuations of some very high quality companies are at historical lows and now is a good time to invest in capital markets if you are thinking of your long-term retirement plan.

The key to successful investing though is working with a professional who can select high quality investments, build risk minimizing portfolios, and continuously monitor and rebalance your portfolios.

Please do not hesitate to reach out if you wish to discuss your investments. I would be happy to provide a complimentary review of your current portfolio. These markets are presenting incredible buying opportunities for those invested for the long term. One would even say – an opportunity of a lifetime!

Best regards,

Najia

 

Najia Crawford, B.A. (Hons.)

Investment Advisor | Conseillère en Placement

RBC Wealth Management | RBC Gestion de Patrimoine

RBC Dominion Securities | RBC Valeurs Mobilières

435 North Service Road W, Suite 301, Oakville, ON, L6M 4X8

T: 905-469-7098

WEBSITE: www.najiacrawford.com

 

I am currently accepting new clients primarily by referral. If you have family or friends who would be a good fit for our specialized wealth management services, then please let me know. I would be happy to provide them a complimentary, confidential consultation.

 

J’accepte actuellement de nouveaux clients principalement par voie de recommendation. Si des amis ou des membres de votre famille pourraient bénéficier de notre approche spécialisée en matière de gestion de patrimoine, laissez-moi savoir. Je serais heureuse de procéder à une évaluation gratuite et confidentielle.