If you’re an investor, you know that the market is unpredictable. It can be great for months, only to suddenly drop before spiking back up once again. Over the past year, we’ve felt the shake of global events in our portfolios on several occasions, and understanding how these events affect our savings is important in keeping a clear head and persevering through the noise.
As expected, volatility is on the rise, most recently fueled by bargaining tactics and a clash of egos that are threatening to provoke a trade war between the two largest economies in the world. Global markets were shaken by the news in March, as we see reflected in increased volatility and a drop in equity markets.
As an investor, one of the most important things you can do to make sure your savings are protected is to diversity your portfolio. A properly diversified portfolio is a simple way to reduce the impact of volatility and isolated risks, and ultimately, allow you to sleep better at night when it comes to thinking about your investments.
In this post, we’ll talk about how diversification can provide you with steady returns while protecting you from less-than-favourable market events.
In February, we saw a reintroduction of volatility in the market. The steep drops early in the month were partially clawed back as cooler heads prevailed, but that left many investors with chilly reminders of the recession of 2008. Despite the perceived similarities, we believe this situation is far from the economic fall 10 years ago, as stated in our letter to investors here. Having said that, we see higher volatility persisting in the near future. In this economic update, we’ll talk about why volatility is here to stay and how to manage it. First, let’s start with a note on the Canadian economy.
Global equity markets have had a solid start to the year, particularly outside of Canada. Even with the stronger Canadian dollar offsetting some gains, most developed markets still performed very well. Emerging markets have also kept a strong pace as the China’s response to tighter credit quieted doubters as the market has chugged along.
Curious about Registered Education Savings Plans (RESPs) and if they could be the right investment account to help you save for your child's education? Check out the information below to learn more about RESPs and their flexibility in helping you save for education.
Curious about Tax-Free Savings Accounts (TFSAs) and if they could be the right investment account to help you reach your goals? Check out the information below to learn more about TFSAs and their flexibility in helping you save for various goals.
Curious about Registered Retirement Savings Plans (RRSPs) and if they could be the right investment account to help you reach your retirement goals? Check out the information below to learn more about RRSPs and how they can help you save more towards your retirement.
It’s almost time to get your 2017 income tax statements ready, and while we’re well into 2018, there is one more thing you can do to increase your 2017 tax return: contribute to your RRSP.
One of the biggest advantages of investing in a Registered Retirement Savings Plan (RRSP) is that any contributions you make will reduce your taxable income in the year the contribution is applied to. While the prior tax year is over, the government allows you to also apply contributions to the prior tax year if they are made in the first 60 days of the following year. The deadline for 2017 RRSP contributions is March 1, 2018.