Long-Term Market Projections Offer a Light at the End of the Tunnel

Clients and friends,

No storm lasts forever. And, while the knee-jerk reaction to abandon your long-term portfolio strategy is natural, it can prove problematic. As a reminder, the best market strategy is built with an eye on the horizon; weathering the ups and downs of the present with a focus on the future leads to better chances of positive returns over the long-term.

A recent article in The Globe and Mail highlights a number of unbiased financial guidelines as released annually by the Financial Planning (FP) Canada Standards Council. Some notable commentary to keep in mind when considering future investment planning and expectations for returns includes:

  • Slowed inflation during the second half of the year, with a return to a pre-Covid-19 rate in the long-term;
  • A peak, followed by easing of bond rates;
  • A boost in annual returns from emerging market stocks over 10+ years (which is something to consider if you are tolerant of some added risk in your long-term portfolio);
  • The resume of mid-single-digit returns for balanced portfolios;
  • And more.

To read the piece in its entirety, please click here.

If you have questions as to how these projections relate to your portfolio more specifically, please let us know. It’s what we’re here for.


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