June 20, 2022 By Page and Associates

Resist the Urge to Time the Market

The past trading week went down as the worst week for the TSX since March 2020. The S&P500 benchmark officially ended down 20% from its prior peak in December as the US Federal Reserve hiked its key overnight rate by 0.75% for the first time since 1994. And the media is stoking fears of further declines and possible recession. It is times like these that emotions take over and has investors asking “should we sell to avoid further declines?”

What we do know from history is that the best market days are clustered in with the worst market days and being out of the market for these best days significantly impacts long term returns.

Source: https://ci-arena.ci.com/od/bb0dfeb6

Also, most stock market gains happen shortly after a bear market. Even after the 2008 Great Financial Crisis, most major benchmarks had regained their prior highs in 2 – 3 years.

Source: https://ci-arena.ci.com/od/48cf0671

Investors who exit the market during a bear market risk missing this rebound. Missing even 12 months of the post-2008 recovery would have significantly reduced their returns over the next 12 years.

Source: https://ci-arena.ci.com/od/fea210a9

It is important during periods of volatility to stick to the plan you created with your advisor. This plan incorporates your long term financial goals along with your near term cash flow needs and risk assessment, and will help you through this market as it has done for many investors in the past.

You can call us anytime to review your objectives and make sure your portfolio allocation is appropriate and consists of high quality portfolio managers.

June 14, 2022 By Page and Associates

Portfolio Benchmarks to 2022 May 31

Each month-end we publish total return data for various investment market indices, as well as a composite portfolio return benchmark for model portfolios of three different asset allocations. These may be useful guides to reasonable performance of your own portfolio or its components.

Click to view the Index Return Table.

Click to view the Portfolio Benchmarks.

May 25, 2022 By Page and Associates

Is The Market Turning a Corner?

Fidelity’s Director of Global Macro, Jurrien Timmer, seems to think so. He provides an excellent summary of fundamental economic and market variables that suggest markets may be finding a bottom. Click here to read the full story: https://www.fidelity.com/learning-center/trading-investing/market-turns-corner

May 17, 2022 By Page and Associates

Patience will be Rewarded, Active Managers Still Beating the Benchmark

The below chart highlights the returns from May 1st, 2007 until yesterday’s close – a period of roughly 15 Years. This includes the Global Financial Crisis, the COVID-19 Pandemic, and countless corrections/world events in between.

We’ve shown the returns of 3 of Fidelity’s flagship equity strategies against the S&P 500 and TSX over that time period. Their returns against the indices have been staggering and serve as a reminder that not all active managers are created equal. We believe that Portfolio Managers Mark Schmehl and Dan Dupont have proven themselves as the “elite of the elite”, which is why they have been on our preferred managers list for some years already.

Volatility is part of investing; perhaps some investors have forgotten that over the past 3 years. Rather than trying to figure out when/how it will end — use downturns as an opportunity to add/diversify for clients with the appropriate time horizon and stick to your investing principles. Patience is the ultimate path to success.

15 Years of Returns: Fidelity Special Situations, Canadian Growth Company, and Canadian Large Cap