Time Tested Principles
Updated: Jun 3, 2020
By remaining available to our clients, we continue to follow time tested principles throughout this market event:
Message From Mario Mota:
While the time-tested principle of staying within your current asset mix has proven success, we are receiving inquiries on how to time the market to take advantage of this correction. It’s public knowledge that when the markets correct over 20%, there typically has been a considerable recovery.
The last 5 corrections we had on the Toronto Stock Exchange where:
• 2008 Financial crisis which lasted 9 months with a 43% correction
• 2000 Tech bubble which lasted 25 months with a 43% correction
• 1998 Credit issues which lasted 4 months with a 27% correction
• 1990 Gulf war which lasted 10 months with a 20% correction
• 1988 Black Monday which lasted 6 months with 23% correction
The question no multi-billion-dollar manager has answered is when the bottom was going to be for any of those. However, as explained in the video, what has historically worked is dollar cost averaging for new funds. We continue to be available via video conferencing service to ensure we are doing our part in “social distancing” while being here to
Please do not hesitate to reach out to Cliff, Mario or Mark for assistance and know that we continue to be available to address any questions you may have.