Congratulations! You rode out the 2008 market correction without changing course – and now it’s paid off (and what a payoff). Although we experienced an extremely tough year in global markets in 2008, those who stayed invested – and invested more – benefited from one of the biggest stock market rallies since 1979. Close to home, the S&P TSX Composite Index was up 30.7%! Anyone who wasn’t invested in 2009, missed the steep and fast market bounce-back, which saw dramatic gains in stock prices. And of course any new money you invested during the year benefited from the growth as well.
The sad truth is, for most Canadian investors, the gains of 2009 were left on the table – a January 2010 survey by Angus Reid and Franklin Templeton showed a whopping 87% of Canadians failed to invest because they were still spooked by the market meltdown of 2008 – moreover, they were completely unaware of the stellar market rally taking place around them. In fact, only 20% of them knew of the TSX’s positive performance during the year.
This is a prime example of how skepticism and fear can cloud our judgment. There was certainly a lot of pain in the markets during 2008. Although it was a good time to take stock of your portfolio, the key was to avoid the temptation to panic. Your investment profile should guide your decisions, not only in up markets, but also in down markets. We urged you to stay the course – stick with your plan – and you listened. So take a moment to look back and appreciate your steely resolve – it served you well and kept you focused on your future during tough times. That’s the discipline that will see you realize the financial goals you’ve set!
And if your resolve starts to weaken, remember we are only a phone call or an email away…
