The Resilience of the Markets

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Information about The Resilience of the Markets
Finance

Published on March 5, 2014

Author: sheppr1

Source: slideshare.net

Description

Over the past 40 years, the S&P / TSX composite index has experienced 14 negative calendar return years.

As shown in the chart, in each instance, with only two exceptions, the following year saw the markets in positive territory. Further, these gains were solidified with 5 year double digit returns.

These results demonstrate the resilience of the market, and that investors have typically been best-served by maintaining a long-term focus despite short-term market volatility.

The resilience of the markets Over the past 40 years, the S&P/TSX Composite index has experienced 14 negative calendar return years. As shown in the chart, in each instance, with only two exceptions, the following year saw the markets in positive territory. Further, these gains were solidified with 5 year double digit returns. These results demonstrate the resilience of the market, and that investors have typically been best-served by maintaining a long-term focus despite short-term market volatility. Market Resilience Source: Investors group portfolio analytics 40 35 30 18.1% return (%) 26.7% 18.5% 15 8.0% 0 -0.8% 7.2% 5.5% 5 -5 17.6% 14.5% 12.0% 10 -10 31.7% 25.1% 25 20 31.5% 32.5% -1.4% -2.4% -3.6% -7.1% -0.2% -1.6% -8.7% -10.2% -15 -12.6% -12.4% -14.8% -20 -25 -25.9% -30 -33.0% -35 1966/67 1969/70/71 1974/75 1981/82 1984/85 1990/91 1992/93 RICHARD SHEPPARD CFP Senior Financial Consultant Investors Group Financial Services Inc. Tel: (403) 226-5531 Richard.Sheppard@investorsgroup.com Insurance products and services distributed through I.G. Insurance Services Inc. Insurance license sponsored by The Great-West Life Assurance Company. Written and published by Investors Group as a general source of information only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice. Seek advice on your specific circumstances from an Investors Group Consultant. Trademarks, including Investors Group, are owned by IGM Financial Inc. and licensed to its subsidiary corporations. © Investors Group Inc. 2014 MP1498 (01/2014) 1994/95 1998/99 2001/02/03 2008/09 2010/11/12

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