TheAnswerIs.ca Inc. announces a total return for the model portfolio from inception October 26, 2016 to March 31, 2019 of 21.94%, up by 13.25% over the last 3 months.
The corresponding total return for the Toronto Stock Exchange (TSX), as represented by the ETF XIC, was 16.34%.
The annualized return for the TheAnswerIs.ca model portfolio for the 2 years and 5 months was 8.51%.
The trailing 12-month total return for TheAnswerIs.ca model portfolio was 6.60%.
In the December 2018 update I reported that global stock markets had been very volatile, in the downward direction, and that we might be entering a Bear Market ….. or we might not. Lots of prognosticators were making forecasts. Truth is, no one knows where the stock market is going in the short term, but in the long term, (i.e. greater than 10 years), the stock market is likely to be higher than it is today.
Past returns are not indicative of future returns.
Given the recent volatility, both upward and downward, we must always be mentally prepared for a Bear Market attack, i.e. a stock market decline of 20%- 50%, or more.
Since 1900, a period of almost 120 years, there have been 32 stock market Bear Market attacks, Historically, Bear Markets occur about once every 3.5 years, and the last Bear Market in the USA was almost 10 years ago.
A Bear Market, when it comes, and it ALWAYS comes, should surprise NO ONE!
The key to investing success is to make sure any money invested in the stock market can be left untouched for a minimum of 10 years, and preferably much longer. Not selling into a stock market downturn will ensure time for a portfolio to recover and provide potentially attractive long-term average equity returns.
When is the best time to get mentally prepared for the pending Bear Market?
Check out “How does an investor survive a Stock Market Bear Attack?”