Message from Rob McClelland

Nothing to fear, stay the course

It is no surprise that investor sentiment has fallen due to the current market volatility.  Who wouldn't be, at least, slightly concerned that the S&P/TSX Composite* was down 4.8% (CAD) and the S&P500* down 6.7% (USD), as of January 22nd?  Buzzwords to date:  West Texas Intermediate; ISIS; devaluing currency; Trump; Chinese deceleration; correction; this time it's different.

Words and phrases like these can wreak havoc on investors' portfolios.  Should I be making changes to address the slow down in China's GDP?  What happens to Canada if oil prices go to zero?  How can I protect my portfolio from an impending ISIS attack?  I read an article online that stated a perfect storm of government debt and low interest rates are upon us and the market will never be the same, what do I do?

Unless you indicated in your investment policy statement that you will change your long-term investment strategy in the event of something listed above, then do nothing. 

Maintain your portfolio as is.  Continue to invest. 

Economic and political issues are affecting different countries and geographic regions on a daily basis, which in turn causes volatility in the market.  Investors' inactivity in these volatile periods will help eliminate timing mistakes and provide for a more consistent investor experience.

Rob McClelland, RFP, CFP, HBA
Vice President,
Branch Owner,
Senior Financial Planning
The McClelland Financial Group of Assante Capital Management Ltd.

*Source: Bloomberg Finance L.P.

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Why Does Pessimism Sound So Smart?

Pessimism requires action, whereas optimism means staying the course. Pessimism is "SELL, GET OUT, RUN," which grabs your attention because it's an action you need to take right now. You don't want to read the article later or skim over the details, because you might get hurt. Optimism is mostly, "Don't worry, stay the course, we'll be alright," which is easy to ignore since it doesn't require doing anything.

This article is part of Motley Fool Mindset, an exclusive behavioral-finance service in Motley Fool One.

Click here to read full article...

The Intellegent Investor

How to Feel Safe in Stocks When the Market Seems Dangerous

If that turbulence is frightening you, you need to make sure you understand why you own risky assets in the first place.

Almost everyone wants to get richer while minimizing the chance of being wiped out. But the richer investors want to get, the more risks they take in the financial markets.

Wall Street Journal - Jason Zweig

Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and is registered with the Investment Industry Regulatory Organization of Canada. This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see me for individual financial advice based on your personal circumstances. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd.

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