The year 2018 will be remembered as a difficult one for the Canadian equity markets. Trade tensions and tariffs imposed by the U.S. created ongoing volatility at home and abroad. Concerns over Canada’s competitiveness have been put under the spotlight—the result of falling foreign direct investment, slowing gross domestic product growth and problems in getting our deeply discounted oil to broader markets. While the federal government acknowledged the need to support business competitiveness in its late November fiscal update, […]
Media coverage of short-term market volatility is prompting
people to worry about their investments. Market analysis of past, rolling
return holding periods helps to shed some light on these fluctuations, and how
we should respond. And our response is typically to do nothing.
Do Nothing? Data Analysis Tells the Story
Here below shows data representing rolling return holding
periods from Bloomberg LP for the S&P 500 from January 1, 1928 to June 30,
2018 (the past 90 years). The idea behind using rolling returns is […]
This past year the markets fluctuated again and again. After years of low volatility, this year saw lots of volatility, especially towards the end. We’ve written about this recently, and believe it’s important to go back to our core thesis: Markets work.
Markets are Unpredictable Short-Term
The uneasy part of the market is that no one knows where it will go short term. There are many articles in the media telling you which way it’s going to go and when. That […]