It was just over a week ago we rang in the New Year, which is often a very positive time for many of us. Unfortunately, if you have been following the media headlines the past few days, you have seen that the markets have not given us much to celebrate. Markets don’t always act rationally; we often experience knee-jerk reactions to events such as the recent Chinese market sell off.
Since the start of 2016, the Canadian Stock Market TSX is down -4.26% and in the United States, the S&P is down -5.02%. These are averages, and the style of Portfolio Manager we use follow Warren Buffet’s philosophy; of investing in high quality blue chip companies which hold their value more in times like these.
Looking at client accounts we have seen the majority of clients down between -2.5% to -4% depending on how much Stock exposure you have. For those who are accumulating wealth, the Portfolio Managers are busy looking at buying opportunities. For retirees, who continue to enjoy the increasing dividend income, we need not let the media get the better of us. Please follow this link for two great articles well-worded to help you keep your focus:
As always, please don’t hesitate to ask if you have any questions or concerns.