With the announcement yesterday of Washington’s reciprocal tariff policy, the markets today have understandably reacted in a negative way. Free trade has been a bedrock of our integrated economies for many years and the markets are adjusting to a new paradigm. The reality is no one knows what’s going to happen going forward but we will all adapt and forge ahead, like we always have.
We want to reassure you that, though the short term has always been unknowable, in the long-term markets have always proven to be resilient in the face of many unknown challenges over the decades. We have included some collateral that demonstrates incredible durability through thick and thin.
Most recently, in March 2020, when COVID was an unknown disruptor, the markets declined 30%. Those that stayed the course recovered their share value decline and more. This has always been the case.
The main point we want to emphasize is that making investment decisions based on short-term noise has always been a fool’s game. You may, and I emphasize “may”, be right in being out of the market in the short term, but when the market invariably rebounds, most people remain on the side lines, not only missing the recovery, but often buying at higher prices than when they sold. It’s very, very difficult to time the market, if not impossible.
In our experience, sticking with the plan has always proven to be the right move, even if the short term has been uncomfortable. Your portfolio is designed to withstand the test of time. As the old adage goes, “This too shall pass.”
One of our core values is to empower our clients to make good financial decisions through education and collaboration. If you feel like you want to chat, please reach out to us. We are always here to help.
The opinions expressed in this report are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Richardson Wealth Limited or its affiliates. Richardson Wealth is a trademark of James Richardson & Sons, Limited used under license. Richardson Wealth Limited, Member Canadian Investor Protection Fund.