You may have seen or heard investment news about the rough start to 2022. If you haven’t, that’s absolutely fine, we at Brown Financial are doing this on your behalf on a daily basis. However, we wanted to share some recent insights from one of our investment partners, Manulife Investments. We had the opportunity to listen to their perspective on recent market volatility and their overall 2022 outlook (just click the link for the full article).
Our key take-aways from Manulife’s update on recent market volatility:
1. Fundamentals are good for 2022 and beyond and the risk of a recession is low.
2. Recent sell-off in markets is an over-reaction and creates opportunities for buying.
3. Timing the market is still very difficult; it’s better to stay invested as long as your time horizon hasn’t changed.
The chart below does a great job of telling us that as long as we don’t go into a recession (which is NOT expected this year) then selloffs like we are experiencing are generally met with strong rebounds within 12 months.
We know that volatility has real impact on emotions as well as investments. Our job is to help you navigate the ups and downs and to put the headlines into perspective of your personal finances. Get in touch anytime, particularly if you’re feeling nervous about your investments.