Markets have seen increased volatility in 2018, and have been trending lower over the past several weeks. Year-to-date, the U.S. S&P 500 Index has returned 2.67%, and the Canadian S&P/TSX -5.33%, closing in on correction territory, with returns of -7.64% and -8.81% respectively from their peaks earlier this year.
No one can tell if this drawdown will be short-lived or if it is the beginning of a larger downturn. However, history indicates that markets tend to recover fairly quickly from corrections, and most sound investment strategies are built to deal with periodic volatility. Long-term investors need to maintain perspective, and stick to their plans.
Read on to understand why market downturns are normal and what we are doing to protect investors’ portfolios.
If you have questions, we encourage you to speak to your Advisor or speak to one of ours today.