Reasons Not To Invest

Concerns about the coronavirus (COVID-19) has dominated the headlines over the last couple of weeks. Equity markets around the globe have surged in all directions as investors try to gauge the global economic impact. In times like these, it can be difficult to focus on the opportunities and not the fear. Here are some points that may help you maintain perspective through this volatile time.

Beware of the headlines: 

Financial news often quotes equity indices. This can be misleading, especially when most portfolios are invested in balanced strategies. The fixed income component within a balanced strategy acts as a ballast against volatile markets and helps to smooth out the large swings in the market.

Volatility creates opportunity: 

Volatile periods can be unpleasant, but it’s important to remember that markets tend to be resilient towards these types of negative shocks. Markets have ultimately remained on an upward course over a longer time-horizon. As a result, these short-term pullbacks can be great opportunities to invest at attractive valuations.

There will always be reasons not to invest:

There will always be negative economic, financial, geopolitical or health-related events that give investors reasons not to invest. As you can see in this attachment, there’s been a negative headline each and every year since 1934.

Attachment: Don’t Want To Invest Now

While these short-term pullbacks can be painful, try to focus on your long-term plan, and always make your investment decisions based on future outcomes rather than short-term concerns.

Hope this helps, have a great weekend.

Happy International Women’s Day!

Tracey

Source: RBC Life Insurance, CI Investments.