The Learning Centre:
When markets are volatile, keep your eyes on the (long-term) prize.
Volatility in equity stock markets continues
Volatility in equity stock markets continues, and may do so for the short term or even increase as we approach the September Federal Reserve meeting. China’s stock markets continued volatile overnight but ended with some stability, forecasting a calmer trading day elsewhere in the world. On Wednesday morning, European markets edged higher as investors got back to business, but it is expected that trading will continue to be cautious. Wall Street is expected to open higher than close yesterday, and the market will be impacted by the release of data concerning employment, productivity, mortgages and factory orders.
Other impacts on the market include:
• Oil gained close to $10 per barrel over the last three sessions in response to OPEC indicating a possible reduction in supply. If this were to occur, the TSX could be pushed higher.
• Domestic GDP data shows Canada slipped into a technical recession given the last two Quarter’s performance. However, with a slight positive if the U.S. economy continues to perform well, (as demonstrated by last weeks GDP figures), then this recession may prove to be quite shallow.
Advice from Educators investment advisors
There’s a reason experts such as Warren Buffet espouse investing for the long-term. Market volatility can be expected periodically. What’s key to success is having a long-term investment plan in place that reflects your needs and goals. An Educators’ investment specialist can answer any questions you have and work with you to ensure your plan continues to meet your needs.
The content contained in this article was derived from a number of secondary sources of information. The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering of tax, legal, accounting or professional advice. Please ensure to consult your accountant and/or legal advisor for specific advice related to your circumstances. Educators Financial Group will not be held responsible or liable for any losses, costs, damages or expenses incurred by reason of reliance as a result of the aforementioned information. The information presented was obtained from sources that are believed to be reliable. However, Educators Financial Group cannot guarantee their completeness or accuracy.