Markets Enjoy Big Rebound in January
What a difference a month makes. As we wrote 3 weeks ago, amid negative media sentiment, markets quietly moved upward from Christmas Eve, and finished January in style.
The S&P Toronto Stock Exchange closed on Christmas Eve at 13,780.20. At market close yesterday, the TSX sat at 15,540.60, a 12.77% rebound.
The S&P 500 closed Christmas Eve at 2,351.10, and has rebounded 15.01% since, ending January 31st at 2,704.10.
We see similar results looking at the Dow Jones Industrial Average (up 14.72% from December 24th through January 31st) and the NASDAQ (up 17.58% from December 24th through January 31st).
We maintain a cautiously optimistic market outlook for 2019. We outlined some of the reasons why in our E-Newsletter article, “Optimism in 10 Charts”.
Historically, we can point to one prevailing theme every year going back to the Great Depression as a reason not to invest; be it war, markets being “too high”, increased taxation, political turmoil, or a combination of these and other factors.
The simple truth is that attempting to time the market will cost you far more over time than maintaining a consistent investing strategy and sticking to it.
As we rapidly approach the March 1st RRSP deadline, remember: short-term volatility is the price you pay for superior long-term returns.
Sources: Globe Advisor, Advisor.ca
This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.