Inflation and other news stories driving market volatility are currently a source of questioning for many people. This could be the case for some of your clients.
If they contact you with any concerns, do not hesitate to talk with them about the risks associated with an impulsive disbursement. Take the time to reassure them by placing the situation in perspective and demonstrating the benefits of long-term investing.
Here’s an example of an investor who invested $10,000 in 1986 and missed the 10 best days on the stock market over the last 35 years.*
This investor would have $100,000 less in their portfolio in 2020 than if he or she had stayed invested.
You can also consult the document Enter, exit or stay put? with your clients. It will help you show them:
- The cycle of investor emotions
- The advantages of staying invested over the long term
*Source: Refinitiv, S&P/TSX Composite Index total returns from January 1, 1986, to December 31, 2020. Past performance is no guarantee of future results.
