The Resilience of the Markets

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Market Resilience SOURCE: INVESTORS GROUP PORTFOLIO ANALYTICS 1966/67 1974/75 1981/82 1984/85 1990/91 1992/93 1994/95 1998/99 2008/09 1969/70/71 2001/02/03 2010/11/12 -35 -10 -30 -5 15 -25 0 20 -20 5 25 35 -15 10 30 40 The resilience of the markets Over the past 40 years, the S&P/TSX Composite index has experienced 14 negative calendar return years. As shown in the chart, in each instance, with only two exceptions, the following year saw the markets in positive territory. Further, these gains were solidified with 5 year double digit returns. These results demonstrate the resilience of the market, and that investors have typically been best-served by maintaining a long-term focus despite short-term market volatility. 7.2% -8.7% 17.6% -33.0% 31.5% 26.7% 31.7% 14.5% 32.5% 12.0% 25.1% 5.5% 18.5% 8.0% 18.1% -7.1% -0.8% -3.6% -25.9% -10.2% -2.4% -14.8% -1.4% -0.2% -1.6% -12.4% -12.6% RETURN (%) Insurance products and services distributed through I.G. Insurance Services Inc. Insurance license sponsored by The Great-West Life Assurance Company. Written and published by Investors Group as a general source of infor- mation only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice. Seek advice on your specific circumstances from an Investors Group Consultant. Trademarks, including Investors Group, are owned by IGM Financial Inc. and licensed to its subsidiary corporations. © Investors Group Inc. 2014 MP1498 (01/2014) RICHARD SHEPPARD CFP Senior Financial Consultant Investors Group Financial Services Inc. Tel: (403) 226-5531 [email protected]

description

Over the past 40 years, the S&P / TSX composite index has experienced 14 negative calendar return years. As shown in the chart, in each instance, with only two exceptions, the following year saw the markets in positive territory. Further, these gains were solidified with 5 year double digit returns. These results demonstrate the resilience of the market, and that investors have typically been best-served by maintaining a long-term focus despite short-term market volatility.

Transcript of The Resilience of the Markets

Page 1: The Resilience of the Markets

Market ResilienceS o u r c e : I n v e S t o r S g r o u p p o r t f o l I o a n a l y t I c S

1 9 6 6 / 6 7 1 9 7 4 / 7 5 1 9 8 1 / 8 2 1 9 8 4 / 8 5 1 9 9 0 / 9 1 1 9 9 2 / 9 3 1 9 9 4 / 9 5 1 9 9 8 / 9 9 2 0 0 8 / 0 91 9 6 9 / 7 0 / 7 1 2 0 0 1 / 0 2 / 0 3 2 0 1 0 / 1 1 / 1 2- 3 5

- 1 0

- 3 0

- 5

1 5

- 2 5

0

2 0

- 2 0

5

2 5

3 5

- 1 5

1 0

3 0

4 0

The resilience of the marketsover the past 40 years, the S&p/tSX composite index has experienced 14 negative calendar return years.

as shown in the chart, in each instance, with only two exceptions, the following year saw the markets in positive territory. Further, these gains were solidified with 5 year double digit returns.

These results demonstrate the resilience of the market, and that investors have typically been best-served by maintaining a long-term focus despite short-term market volatility.

7.2%

-8.7%

17.6%

-33.0%

31.5%

26.7%

31.7%

14.5%

32.5%

12.0%

25.1%

5.5%

18.5%

8.0%

18.1%

-7.1%

-0.8%-3.6%

-25.9%

-10.2%

-2.4%

-14.8%

-1.4% -0.2% -1.6%

-12.4%-12.6%

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Rn

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Insurance products and services distributed through I.G. Insurance Services Inc. Insurance license sponsored by The Great-West Life Assurance Company. Written and published by Investors Group as a general source of infor-mation only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice. Seek advice on your specific circumstances from an Investors Group Consultant.Trademarks, including Investors Group, are owned by IGM Financial Inc. and licensed to its subsidiary corporations. © Investors Group Inc. 2014 MP1498 (01/2014)

RICHARD SHEPPARD cfp

Senior Financial ConsultantInvestors Group Financial Services Inc.

Tel: (403) 226-5531 [email protected]