613-283-5510 info@pankow.ca

Coronavirus pandemic and

Market Volatility

I’m reaching out to address the financial market’s recent reaction to the coronavirus pandemic and provide you with a perspective on what this may mean for your investments.

Financial markets have continued to exhibit high levels of volatility over the past several days as they react to factors that include reduced interest rates, a steep decline in oil prices and the economic and business implications of the coronavirus (COVID-19) outbreak. I am writing today to provide you with some further perspective on these developments and what the market’s short-term fluctuations may mean for your investments in the longer term. With the widespread outbreak of the coronavirus, markets are reacting to the impact on the global economy. Financial markets can be subject to periods of event-related volatility that may leave you feeling anxious with your investments, but it’s important to keep in mind that time in the market beats timing the market. It’s also important to consider the time horizon you have for your investments.

There are three things I’d like to remind you that during times of market volatility:

  • Volatility is a normal part of long-term investing. It’s important to take a step back during volatile times and keep an open mindset. By accepting short-term volatility, you can stay focused on long-term investment goals and take advantage of lower prices.
  • Market corrections can create attractive opportunities. Corrections are a normal part of the stock market. They can be good opportunities to invest in equities as valuations become more attractive, which will give you the potential to generate above-average returns when the market rebounds.
  • Avoid stopping and starting investments. By remaining invested, you will likely benefit from the long-term uptrend in stock markets. If you try to time the market, and stop and start your investments, you run the risk of hurting future returns by missing the best recovery days in the market.

Above all, the most important thing to remember is that your existing investment plan considers stock market volatility, as together we have carefully designed a well-diversified portfolio while keeping your specific goals in mind. Although investing is a long-term commitment, market volatility can induce anxiety, and lead to ill-advised impulsive reactions. The key is to maintain a sense of calm by looking beyond the short-term volatility and envision the recovery.

I hope that this information has provided you with some useful information and strategies to help withstand market volatility. At times like these, it is only natural to ask questions about your portfolio results and overall financial plan. If you have concerns about your portfolio, I am here to address them as well as to provide you with the most up-to-date information from all our investment companies.

If you have any concerns or questions about your investments, please do not hesitate to reach out to me. Please stay informed and healthy by taking care of yourself and those around you.

 

Barry Thompson

Partner & Financial Security Advisor
Pankow Financial Solutions Ltd.
37 William Street East
Smiths Falls, ON.  K7A 1C3

Sources: Fidelity Investments, Dynamic Mutual funds, Canada Life, CI Investments, Signature Global Asset Management, Manulife Investments, Cambridge Global Asset Management, Globe and Mail, National Post, Bloomberg Finance, and Trading Economics.

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Independent, objective, and unbiased advice isn’t easy to find in today’s financial marketplace. Most advisors you could meet with work for a financial institution, and have an obligation to recommend products produced by that institution.

We are different.

We are a financial planning and investment advisory firm specializing in finding our clients the right solution to their financial, retirement, estate and investment planning needs. As we are not employed by a financial institution, we are able to be independent and unbiased in arranging for our clients the best plan for their insurance or investment needs

 

We draw on decades of wisdom and experience in drafting individualized, customized plans designed to guide our clients to the achievement of their goals. We are associated with the Wealth and Insurance Solutions Enterprise (within Freedom 55 Financial, a division of London Life Insurance Company), a specialized segment of advisors focused on meeting the complex needs of affluent Canadians.

There are literally thousands of investment funds available in Canada. We do daily research through a variety of sources so we can provide our clients with the information, options and insights they need to make the best decisions regarding their investment portfolios. We are able to source dozens of banks, trust companies and credit unions in an effort to find our clients the most competitive GIC rates, and utilize Canada’s leading life insurance companies to ensure we can tailor the most appropriate insurance products for our clients’ financial security needs.

Call us today for a personal consultation – 613-283-5510

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Whether your objectives are preservation of wealth or building your future nest egg, Pankow Financial is here to help you. Especially if you don’t have an investment strategy yet, we can help you get started on your way to future financial stability. (Read more)

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If you are currently retired or years away, reviewing your plan regularly makes sure all things are on track. With the ever-changing investment options and tax laws planning for retirement requires monitoring and regular updates to be sure you’re on top of things. (Read more)

Insurance Planning

We know that life insurance can provide some unique and valuable financial benefits, especially for those with dependents to support. It is often the best way to insure that your loved ones will be financially stable should you die prematurely. (Read more)

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