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When reviewing historical data dating back to 1934, Corrections, pullbacks, and volatile market moves are common in the 12-month period leading up to a U.S. midterm election.
Without proper context, we are all at risk of an emotional response which could adversely affect our long term growth goals.
Higher spending on technology, equipment and facilities could ease worries that S&P 500 companies have reached a peak in their profit growth.
Even our own Canadian Pension Plan (CPP) has moved to favor Global equities more recently which is a sizable shift from 10 years ago (reducing their Canadian equity exposure from 23.5% to 3.7% more recently).
The key observation being that these oscillations and volatility are normal for stocks and must be tolerated in order to benefit from the long term growth they can provide within your portfolio.
In order to post a positive return so far this year you have needed good stock selection within Canada and/or the ownership of some US and Global stocks within your portfolio.
If we consider the tailwinds from demographics and the current yield environment for investments, the Dividend trade could remain in vogue for years to come