A Special Message From Gerard Nash – Your Financial Planner
I‘ve been taking a lot of calls from clients like you, these last two weeks. I understand you’re concerned about the market and the impact it’s having on your accounts. Many people are worried and rightfully so.
I’ve been through 3 of these downturns in the markets in my 23 year financial career. Dot Com 2000/ Financial Crisis 2008 and now the Coronavirus.
Markets will be volatile for the coming few months. Volatility can also include sudden increases in the markets. Back in December 2018, clients temporarily lost 12 to 15% right at the end of the year. Those losses were erased 2-3 weeks later by a sudden increase in the market.
The solution right now is NOT to make a move out of the market. Doing so is going to solidify the losses you have incurred in the last couple of weeks. I’m not saying this downturn will be erased in 2-3 weeks. What I am saying is if you go out of the market right now, you will not get a chance to be part of the market when it rebounds. Markets always rebound after a downturn. We don’t know when that will be, but we know it IS going to happen. If you have losses in your accounts right now, switching out of the market will only solidify your loss.
“Markets always rebound after a downturn. We don’t know when that will be, but we know it IS going to happen. If you have losses in your accounts right now, switching out of the market will only solidify your loss.”
If you find that this market turbulence was too much for you to handle, we should meet after the market rebounds, to see how much risk you are willing to absorb going forward.
However, if you find this current volatility too much to bear, perhaps the market isn’t the right place for you to save. Perhaps guaranteed products like GICs and annuities are more suitable for you.
As always, we will persevere and get through these challenging times together.
Yours in service,
Gerard Nash, B.Comm., CFP ®