When market returns have been stable and trending upwards for an extended period of time, we often start to adjust our expectations.  It is important that we keep in mind we are being compensated for the risk that is taken when invested in the stock market.  As the word “risk” would imply, it is important to remember there is also a downside to investing in the stock market.

 

It is never a matter of “if” we will see the market go down, it is always a matter of “when” and that is okay.  If the market only went up, we would expect risk-free returns similar to your high-interest bank account.  The important point here is to expect and be prepared for ups and downs in the stock market.  We should only allocate investment money to stocks when our time horizon is long enough to ride out a bear market.  Given a long enough time horizon, the market has provided remarkably consistent long-term returns.  However, there is no such thing as a “normal” calendar year return.

 

Click this link to view, The Bumpy Road to the Market’s Long-Term Average, one-pager.

 

*Matthews + Associates of ACPI is a trade name of Aligned Capital Partners Inc. (ACPI)* – if applicable ACPI is regulated by the Investment Industry Regulatory Organization of Canada (www.iiroc.ca) and a Member of the Canadian Investor Protection Fund (www.cipf.ca). Joseph Curry is registered to advise in (securities and/or mutual funds) to clients residing in Ontario.
This publication is for informational purposes only and shall not be construed to constitute any form of investment advice. The views expressed are those of the author and may not necessarily be those of ACPI. Opinions expressed are as of the date of this publication and are subject to change without notice and information has been compiled from sources believed to be reliable. This publication has been prepared for general circulation and without regard to the individual financial circumstances and objectives of persons who receive it. You should not act or rely on the information without seeking the advice of the appropriate professional.
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