Putting the COVID-19 Crisis in Perspective
The COVID-19 pandemic has had a significant negative impact on the markets, leaving many investors wondering what their options are and where to turn.
The value of advice
At iA Clarington, we firmly believe that the guidance and counsel of a financial advisor, while crucial regardless of what the markets are doing, is most valuable in times of crisis. With a financial advisor, you’ll have the steady hand of an investment professional making thoughtful, evidence-based decisions to ensure that, when the road gets a little – or very – bumpy, you stay on track towards your long-term goals.
We’ve been here before
While every market shock is unique – no matter how similar it may be to previous episodes – there are some unmistakable historical patterns that can form part of your conversations with your advisor as you determine how best to plot your course for the weeks and months ahead.
One such pattern is the tendency for markets to recover from steep declines and subsequently grow beyond their previous high points. From an historical perspective, this pattern has rewarded patient, long-term investors who stay the course, and hurt those who let fear, panic and emotion drive them to pull out of the market in the midst of a severe correction. Here are some short research papers illustrating this pattern:
- Emotional investing
- The bulls outweigh the bears
- The storm before the calm
- What are my options when the market is down?
If you’re not currently working with an advisor and are considering doing so, consult our guide on how to find the right match for your needs:
We hope you find these resources useful and encourage you to speak with an advisor for perspective and insight on how best to respond to the market impact of the COVID-19 pandemic.