Negative events in the media may cause people to react emotionally and lose sight of their investment strategy. In the past three decades alone, there have been a number of events that may have kept investors on the sidelines. When you look at the big picture, over the last 30 calendar years, the S&P/TSX Composite Index gained approximately 1316% or 9% per year and 22 of the 30 years had positive returns.
*The S&P/TSX Composite Index percentage total return per calendar year.
What has History Taught us?
Canadian Stock Market Declines and Recoveries (S&P/TSX Composite Total Return Index)
Those individuals who invest regularly in a diversified portfolio and stay invested for the long term have typically benefited. The following chart illustrates historical downturns in the Canadian equity market and its subsequent recoveries.
