Capital market returns are there for the taking, but short-term discipline and a long-term perspective are required to capture them because market gains often come in short and unpredictable spurts.
In this low interest rate environment, as tempting as it may be to abandon bonds in search of higher-yielding securities, disciplined investors should stay committed to their asset allocation as per their Investment Policy Statement.
Trying to understand financial markets by tracking the daily media headlines is like trying to tell the time by tracking the second hand of a watch. By focusing on the minutiae, you risk missing the big picture.
At times like these, when markets are volatile and unpredictable, the patience of even the most disciplined investors can be tested. The good news is there is a better way. 8 points to remember during these volatile times.
With the steady stream of bad news about the global economy, many investors have contemplated selling their equity positions in advance of further anticipated losses. This brief explains some of the trade-offs and corresponding risks of such an action and provides a quick reminder about the way markets work.
Fortunately, the analogy between today’s economic woes and those of the early 1930’s has been overplayed by many self-interested scaremongers. There is one fundamental similarity – in both cases, extremely severe economic contractions were triggered by credit crises when excessive asset prices, inflated by too much leverage and speculation, collapsed.
Each year, Mercer (Canada), Limited conducts what they have dubbed their "fearless Forecast," I assume the fear they have overcome is not the forecast itself, but in making the results public.
