Reacting to short-term market events by making dramatic portfolio changes makes it difficult to stay on course to achieve your investment goals.
While many investors feel they have to do something during a market downturn, history shows that the disciplined, patient investor will often be the one rewarded when markets return to their upward path. As the chart below shows, major declines have generally been followed by major recoveries.
|Return (%)||Return in following year (%)||Average return for next 5 years (%)|
(Eurozone debt crisis)
Based on returns of the S&P/TSX Composite Total Return Index.