With all the news about tariffs and trade tensions, you might be wondering, “What does this mean for my investments?” It’s a valid concern, but the most important thing to remember is not to panic over headlines.
Key Takeaways:
Don’t React to Headlines – Markets move up and down, but reacting emotionally can lead to costly mistakes.
Think Long-Term – Investing is about patience. Short-term news shouldn’t dictate long-term financial goals.
Stay Diversified – Having a mix of investments helps balance risk.
What Are Portfolio Managers Doing?
Professional investment managers are:
✔ Monitoring the situation carefully to find new investment opportunities.
✔ Investing in strong businesses that may be temporarily undervalued.
❌ Not panicking or making sudden changes based on short-term news.
Why Staying Invested Matters
One of the biggest risks to your investments isn’t a market dip—it’s missing out on the market’s best days.
To show how trying to time the market or selling at the wrong time can significantly impact your investment returns:
If you had invested $10,000 in the S&P/TSX Composite Index and stayed fully invested over a long period, your money could have grown to $241,179.
However, if you had sold and missed just a few of the best market days, your returns would have dropped dramatically:
Miss the 10 best days: Your investment would shrink to $112,875—less than half of what it could have been.
Miss the 30 best days: You’d only have $48,327, missing out on significant growth.
Miss the 60 best days: Your investment would be just $18,084—barely more than you started with.
This highlights why trying to predict the market or selling during downturns can be costly. The best days often follow the worst ones, and if you’re out of the market, you risk missing those crucial recovery periods. Staying invested is key to long-term success.g in and out is risky. The best days often happen during market recoveries, and if you’re on the sidelines, you miss them.
The Bottom Line
Markets will always have ups and downs, and uncertainty will never fully go away. The best way to grow wealth is to stay invested, stay diversified, and think long-term.
If you have questions or concerns, reach out to your financial advisor—we’re here to help you stay on track toward your financial goals.