Feeling nervous about the economy, your job, rising prices, or retirement savings? You’re not alone. Market downturns can be scary, especially when the headlines feel overwhelming. At Harmer Wealth Management, we understand these concerns deeply. This post is meant to reassure you and explain clearly why, despite the current uncertainty, your financial future remains secure if you stick with your plan.
Your Portfolio is Still Working for You
Let’s first address what matters most to many of you:
Retirees: Your Income Continues
If you rely on your investments for regular income, remember your portfolio is specifically designed to keep paying you—even in tough markets. Retirement portfolios typically hold bonds, Real Estate & Infrastructure income assets, and dividend-paying stocks that continue generating income despite temporary market dips. Even when market values fluctuate, dividends and interest generally remain steady, keeping your “retirement paycheque” coming in as planned.
Long-term Investors: Market Dips Are Opportunities
If you’re still accumulating wealth, periods of market volatility can actually benefit your long-term growth. Regular contributions through your RRSP, TFSA, or other investment accounts during downturns let you buy investments at lower prices, effectively positioning you to benefit significantly when markets recover. This disciplined approach, known as dollar-cost averaging, can boost your long-term returns. Volatility creates valuable buying opportunities, and active fund managers we partner with at Dynamic, Fidelity, BMO, Manulife, RBC, and PIMCO are currently capitalizing on these opportunities.
Real Estate: Short-Term Noise vs. Long-Term Goals
Real estate markets experience ups and downs similar to stock markets, but over the long run, property values and rental income generally trend upwards. Current political or economic events causing short-term dips shouldn’t deter your long-term real estate personal or investment goals. Patience is key, as well-chosen properties typically recover value over time. Real estate also provides excellent diversification for your financial plan, smoothing out overall investment volatility.
Market Downturns Are Normal—and Temporary
Market corrections (declines of around 10%) happen nearly every year and typically recover within months. Even bear markets (declines of 20% or more) historically last about 9 to 10 months, followed by much longer periods of growth. Every downturn is eventually followed by a recovery that pushes markets higher. While uncomfortable, downturns are simply part of the normal investing cycle.
“There’s Always a Reason Not to Invest”—But Markets Always Recover
Every year has brought new reasons to worry—wars, recessions, inflation, political changes—but despite these events, markets have consistently rebounded over the long run. Staying invested through challenges has historically led to substantial growth. Trying to time the market or panic-selling during downturns typically causes investors to miss out on significant recoveries.
Avoid Panic: Selling Locks in Losses
Selling your investments during a downturn can turn temporary declines into permanent losses. Often, the market’s biggest gains occur just after its worst declines, making it crucial to remain invested through volatility. The best strategy remains “time in the market” rather than “timing the market.”
How Harmer Wealth Management Protects Your Investments
Our active management approach means your portfolio is continually monitored and adjusted. Our investment partners (Dynamic, Fidelity, BMO, Manulife, RBC, PIMCO) actively manage and rebalance portfolios, ensuring they’re aligned with your goals and taking advantage of opportunities presented by market volatility. This disciplined approach helps mitigate risks and positions your investments for recovery and growth.
Core Strategies to Navigate Volatility
- Stay Invested: Markets historically reward patient investors who remain invested through downturns.
- Diversification: Spreading investments across different sectors, asset types, and global markets reduces volatility and risk—this is something we take into account when building your portfolio at Harmer Wealth Management.
- Stick to Your Plan: Your financial plan already accounts for market downturns. Trust it, revisit it, and only make changes thoughtfully, not emotionally.
- Regular Investing (Dollar-Cost Averaging): Keep contributing regularly to your investment accounts to take advantage of lower prices.
We’re Here for You
Remember, you’re not alone in navigating these uncertain times. At Harmer Wealth Management, human advice matters more than ever. Our team is here to provide guidance, reassurance, and perspective whenever you need it. Don’t hesitate to reach out if you have questions or concerns. Together, we will see this through, keeping you on track towards your financial goals.
Similar Articles:
How Trump’s 25% Tariffs on Canada Might Affect Your Investments (And Why You Shouldn’t Worry)
What Do Tariffs and Market Uncertainty Mean for Your Investments?