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COVID-19 Member Update From the Vice President of Wealth Management Services

Tuesday, April 14 2020

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Stay Invested

Over the past month we have seen tremendous volatility in global stock markets as fears of COVID-19 have risen. While the headlines have been dramatic, we would like to reassure you about your investment plan with Tandia.  

We believe that, like all market downturns, this one will be temporary as we have already started to see positive indications of recovery as markets appear to have stabilized over recent days.

Tandia and our Wealth Management team, have closely watched the markets over the last several weeks and it has been evident that the global financial markets have reacted similar to the “crashes” that were experienced during previous outbreaks such as SARS (2003-2004) and H1N1 (2009). While markets and investors faced sudden and significant losses during those events, global financial markets and the economy rebounded after each of these global crises. There is a long history of market recovery after adverse times and with investors’ patience and steadfastness, investment portfolios have always returned to previous levels.

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The chart below illustrates the strength and duration of Bull markets in contrast to Bear markets. Dating back to 1960, BULL market runs lasted on average 61 months with over 100% cumulative returns. In contrast, BEAR markets were of a much shorter duration, lasting an average of 17 months with cumulative losses of -30%. What this illustrates is the importance of patience and that investors should stay invested despite market volatility and economic uncertainty. Those who held their investments throughout these downturns and did not exit the market, were rewarded with a 10.1% annualized rate of return over the entire period.

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Ref: Chart courtesy of Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned byAviso Wealth Inc. Mutual funds and related financial planning services are offered through Credential Asset Management Inc.

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We understand that these last several months have truly been unprecedented times as we have lived through events that we never thought we would experience in our life time. The COVID-19 Pandemic has created fear and worry about employment, finances, our economy and most importantly the health and safety of our friends and family. While a lot of questions remain, and we don’t have answers as to when we as Canadians will get to return to “life as we knew it,” it is now more important than ever that our members have access to professional financial advice. In periods of declining markets, emotions can run high and it is instinctual to be reactionary with our investments, but it is times like these that a long term outlook and financial plan is vital. 

As always, we remain diligent on your behalf, and will continue to monitor the markets and your investments to ensure you investment strategy is what you need at this time and will keep you on track with your longer term investment goals.

If you have any questions about the markets, your investments or your long term financial plan please do not hesitate to contact your advisor. 

Stay healthy. Stay safe. And stay invested. 

Michael Butler
Vice President, Wealth Management Services