Rocky Roads Ahead - Part 2
Our last commentary addressed the recent volatility and some of the reasons behind it, and we continue to experience heightened volatility in all markets. Markets don’t like uncertainty or unexpected change, and they have reacted accordingly with wild intra-day moves. The causes of volatility remain the same, with the Ukraine-Russia geopolitical event taking over the news cycle. More important to the financial markets will be central banks starting their cycle of rate increases imminently to try and cool rising inflation.
While a lot has changed in the world over the last week, our investment philosophy has not. In all the commentary that has come out, the presentations by investment professionals, and in the business news, there has been one overriding message; invest for the long term and stick to your plan. One known, in all the unknowns, is that market events will happen. We can’t predict the timing or cause or direction, but we do know they will happen. What do we do with this nugget of knowledge? We construct diversified portfolios, that hold different asset classes in different regions and sectors. We invest with mutual fund partners that share this philosophy and that follow a consistent investment process, regardless of what direction the market moves on any specific day. For our clients that are relying on their portfolios for income, we implement strategies in anticipation of market volatility, not in reaction to market volatility.
We hope for a quick resolution to the conflict in the Ukraine, and peace to return to the Ukrainian people soon. As we move through this period of uncertainty, our team is here to guide you and help you stick to your long term financial and investment plans.
For more information about market volatility, please visit the following link showing the results of varying investor behaviour from the2008 financial crisis: what-are-my-options-when-the-market-is-down.pdf
Warm Regards,
Andrea Looker, CFA
Associate Investment Advisor
Adamson Wealth Group | iA Private Wealth
This article is a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.
