SET REALISTIC EXPECTATIONS
TO JUDGE YOUR PROGRESS APPROPRIATELY
What’s a typical rate of return from the equity markets? By the end of the
bull market of the 1990s, even the most knowledgeable investors had
forgotten that 8% to 10% returns are the norm. As the chart shows, the
average annual return from Canadian equities in recent years was 9.5%.
Time for a reality check?
HIGH DOUBLE-DIGIT RETURNS FOR CANADIAN EQUITIES (1998 – 2007)
HAVE BEEN THE EXCEPTION, NOT THE NORM,
OVER THE LONG TERM.
Canadian equities are represented by the S&P/TSX Composite
Total Return Index.
Source: TSX
Remember, bear markets are as normal as bull markets.
The
good news is that, historically, the long-term trend for equity
markets has always been up.
It can be difficult to stay focused on the long-term trend when you’re in
the midst of a short-term downturn. Your advisor can help you maintain
perspective and keep your portfolio positioned to meet your future goals.
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