Everyone is happy when stock markets rise and, fortunately, they do achieve positive returns most years.
Yet, the longer you invest, the more likely it is you will encounter challenging markets. Still, the only way for investors to fully enjoy their attractive long-term gains is to stay the course during market dips.
Our “pension-style” portfolios are specifically designed to help manage those inevitable difficult (and stressful) periods by incorporating multiple defensive strategies.
As a result, the track records of our selected fund managers demonstrate:
- Meaningfully lower maximum drawdowns
- Significantly quicker recovery periods
- Consistent long-term risk-adjusted performance
Our risk management can give you peace of mind by lowering your drawdowns and bringing about quicker recoveries in your portfolio which helps you stay invested and participate in the positive years!
For more information on our model portfolios, visit: https://cwealth.ca/serving-clients/portfolios/
Call us to discuss how our recommended portfolios of funds have performed.
We would be happy to show you what we can do for you!
Your CommonWealth Team
The following charts below are provided to illustrate these concepts:
Most years the S&P500 achieves positive returns with a 1yr rolling period return of 13%.
The only way for investors to fully enjoy the long-term gains of markets is to stay invested.
The longer you invest the more the odds rise you will encounter a Bear Market.
The Maximum Drawdown for even most balanced portfolios can be quite significant. Selling at the low is the risk.
The % decline for balanced portfolios is generally less than the market, but can take months longer to recover.
The % decline for the market is generally greater than a balanced portfolio, although the market generally recovers sooner.
Investing in specific stocks has much greater volatility than investing in a diversified portfolio.
Some individual stocks also don’t seem to “recover.”
Fund managers can take advantage of downturns for you and buy when markets are low.
