Recent Articles

Message From our Team
Apr 8, 2025

Hello Clients,

 

As you’re undoubtedly aware, stock markets worldwide have seen significant declines over the past few days. Normally, we would suggest not paying attention to the daily movements on the markets, but we know the stress you’re feeling and how concerned you are about the value of your investments. You might be asking if you will have enough to meet your financial goals, if there are changes you need to make.  

 

We want to first acknowledge that it’s normal to feel anxious or nervous, especially given the unusual cause of the downturn – tariffs and trade wars.  You’re not alone.  However, it’s important to remember that markets experience pullbacks from time to time – even large ones like this. In every case, stocks have rebounded stronger than before. While the past does not predict the future, research does show that a correction, defined as a drop of 10% off a market high, lasts for, on average, four months. 

 

Looking back at some of the bigger market shocks, such as the 2008-09 financial crisis or the COVID-19-pandemic-related downturn, the declines that worried us then aren’t nearly as noticeable on stock charts today.

 

As much as you may feel like doing something with your portfolio, remember that it’s much easier to exit positions than to get back in. No one knows when the markets will rebound, and when they do, it can happen quickly. Studies reveal that those who missed the 10 best trading days between December 2014 and December 2024 would have made a 3.43% annual return over that time frame. Those who stayed invested would have seen an 8.65% annual return.* Most of those best days also came after a sizable decline.

 

So, what can you do? The best course of action is to call me. It’s in these moments where, as your advisor, I can truly help. I’m paying close attention to your portfolio and the economic and market forces driving the ups and downs, so you don’t have to. We’re also hearing from the portfolio managers who manage the investments in your portfolios – they are carefully analyzing the situation and taking steps to manage the volatility. 

 

Let’s discuss your immediate concerns, both financial and personal, and together we’ll review plan, which would have considered the potential for short-term market shocks. We can see if any adjustments need to be made. We can also revisit any goals, talk about how markets tend to perform in downturns or discuss how you’re feeling today. 

 

Please reach out at any time. 

 

Sincerely, 

 

Gilchrist Financial Team

Source: Investment Planning Counsel, Morningstar Direct. January 2025. (Based on the S&P/TSX Composite Total Return Index)

---

Previous article Next article