Page 33 - INSIGHT MAGAZINE_April2025

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DOLLARS & SENSE

How to react to volatility?

The importance of Staying the Course

Navigating market cycles requires greater than usual patience. Time in the market matters more! Precisely timing the market
Given the cost of missing periods of strong returns, the more peaks and troughs requires three conditions: avoid selling as
suitable course of action for most investors is to remain disciplined, the market continues to move higher; sell at the top; and time
trust your strategy and stay invested. the re-entry at the bottom. Even with a healthy dose of luck,
Having worked in the industry with RBC Dominion Securities the possibility of consistently fulfilling all three conditions
for over 30 years, every downturn and market shock has created across multiple market cycles is extremely low, especially when
uncertainty, unease and of course volatility. Markets shocks are considering that, historically, the market’s best days have often
also a catalyst for positive change but never the less, uncomfortable followed the sharpest drops. Google timing markets and you will
as we go through these times in history. see, the more suitable strategy may be to stay disciplined and fully
invested, which can help keep investors on the trajectory towards
With the current Administration in the US altering their course achieving their long term financial objectives.
week to week, and their wide range of policy moves
from day to day, creates so much uncertainty. Keeping In summary, no matter how negative the headlines
in mind, Canada and US have been steadfast allies become, stick to your strategy, focus on the fundamentals
working together through all the challenging moments and stay the course. Ultimately there will be good that
in history - from tackling wars, depression and market comes as a result of these challenging times. To recap
crisis – and there are ultimately no winners in a trade our CEO “Canadians will be buying Canadian made
war between allied countries. It will be arduous over products, we will be working together with government
the next year but Canadians are resilient and we are to increase trade between provinces, getting high impact
the leaders in agriculture, energy, critical minerals, energy and infrastructure projects approved faster,
advanced manufacturing and technology. Erica Tennenbaum, CFP, FCSI supporting home-grown tech innovation and products,
improving our tax competitiveness and unlocking more
The volatility will be seen in equity markets whether Senior Portfolio Manager & capital to scale our best engines of economic growth.
Wealth Advisor
long or short term , we will see the effects in the market. We are lucky to be living in the country that has what
There will be sharp corrections and a bear market may occur the world wants!”
,however, these corrections are a normal part of investing. Since It is important to work alongside your professional advisors to ensure
1928, the S&P 500 has experienced 26 bear markets—defined you are considering the best strategies for you and your family. If you
as declines of 20% or more—with many of these corrections have any questions, comments or would like more information please
coinciding with recessions. This means investors should expect a feel free to email us at erica.tennenbaum@rbc.com.
bear market, on average, once roughly every four years.
Maintaining discipline is crucial. Market corrections tend to set
off emotional responses for investors. When volatility increases, it
is natural to believe that it might continue and/or that something
should be done. The current environment has certainly tested
the mettle of investors. But for those that have a well-devised
investment plan, resisting the impulse to deviate from the long-term
plan is important during the inevitable “cold stretches” in equity
markets.

This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest
available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness.
This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information
suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate
entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ® / TM Trademark(s) of Royal Bank of Canada. Used under licence.
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