I Don't Want To Invest My Money Now Because...

The world markets have provided us with quite an interesting ride over the past few months causing volatility to creep back into focus. We saw a small sell off in Sept 2014, when Russia invaded the Ukraine, another sell off during the first 2 weeks of Dec 2014 when the price of oil started to decline, and it has been fairly up and down over the first part of 2015, due to oil prices continuing to decline, slowed growth in China and questions about the Euro Zone as they deal with Greece and try to stimulate their economy. The truth is, there will always be a cause for concern when it comes to the stock market, and with that, there will always be a reason to be hesitant about making an investment. This is why I thought it would be a good time to share some information CI Investments put together called " I Don’t Want To Invest My Money Now Because… .” It highlights at least one negative event that has occurred in every single year, dating back to 1934, which would cause investors’ concern and give them reason to not start an investment plan. Along with this, CI Funds also shows the year-end, closing figures, of the Dow Jones Industrial Average (DJIA); which is an index in the USA that highlights the performance of the largest 30 companies in their market. There are some really important takeaways to keep in mind.

  • Long term investing does work: Despite all the negative events presented each year; you will see that the DJIA has risen quite well over time. Sticking with it has paid off well for investors.

  • Markets do not always go up : Sounds like a redundant comment, but you will notice that there were some years that the DJIA did go down and provide investors with a short term loss. In some cases it took several years to move to a new higher point. It is easy to say that these drops are only short term, and present a buying opportunity, but living through it can be a very frustrating and difficult experience. As the CI Document highlights, people tend to focus on the negatives especially when things do not appear to be working.

  • Markets tend to climb a wall of worry – Even when things are just starting to look good in the economy, there will always be something that will gives investors a cause for concern. Despite this, markets tend to be forward looking and if there are positive outlooks to be seen in the future markets will react towards these, even if some negative events are looming in the present.

I do not know any better than the next person which way the market is going to go in the coming months. The facts are that markets moving up or down for periods of time will always happen, and unfortunately it is next to impossible to predict when the next down period will come, and when it will be over. I will leave you with one last article, also from CI Investments titled 5 Strategies For Dealing With Difficult Markets, and know that we are always here to help if you even have concerns. Sincerely, Andrew & Peter


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