TheAnswerIs.ca
Model Portfolio
TheAnswerIs.ca Inc. Model Portfolio Performance Update (Q1 2022)
TheAnswerIs.ca Inc. announces a total return for the Model Portfolio from inception October 26, 2016, to March 31, 2022 was 72.42%.
The corresponding total return for the Toronto Stock Exchange (TSX), as represented by the ETF XIC, is 75.62%.
The annualized return for the TheAnswerIs.ca Model Portfolio for the 5.44 years since inception is 10.53% per year.
The trailing 3-month total return for TheAnswerIs.ca Model Portfolio was 0.03%. The trailing 12-month total return for TheAnswerIs.ca Model Portfolio is 12.61%.
Past returns are not indicative of future returns.
Due to the onset of COVID, between February 20, 2020, and March 23, 2020, the TSX, (and most global stock markets), dropped by approximately 35%.
Since then, global stock markets have rebounded. The Toronto Stock Exchange, buoyed by very strong oil & gas, as well as other commodities markets, is now near its all-time high. The USA and European markets are only slightly off their respective all-time highs, despite the Russian invasion of Ukraine, lingering Covid and supply chain disruptions, as well as rising inflation and interest rates. From a historical perspective, stock markets tend to rise "farther than they should", and also fall "further than they should", reflecting human greed and fear, respectively.
I have no idea if the stock market will be higher or lower in the short term, and quite frankly no one else does either. However, it is likely that in the long term, i.e., 10 years or longer, global stock markets will be higher than they are today.
The key to investment 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. Five years before one slows down working, and begins to draw money from their portfolio, one should move a significant portion of their portfolio into Fixed Income.
Invest long-term and prosper.
