In fact, as frustrating as it could be, it’s only normal to have a bad year occasionally. Should it be a source of concern? Not at all. This tells me we are far from being done with interest rate increases. When we take some relative perspective, we realize that even if interest rates are going up quickly, we are only getting back to more “normal” levels:Īt this point, we are very far from pre-pandemic levels, and we are even further from the pre-financial crisis (2008) levels. In other words, they are ready to amputate if it means it will save the patient’s life. The most recent comments coming from the FED and the Bank of Canada lead us to think they will do whatever is necessary to kill the inflation even if it means forcing a recession. A 50% chance… you might as well say nothing, and you wouldn’t add less value to the conversation!
I recently read comments from analysts at Royal Bank who think we have a 50-50 chance to see a recession. Now, depending on who you ask, you’ll get a different answer. It seems the market thinks it’s a fair possibility. When we see a gloomy market for the first 5 months of 2022, we can surmise that a recession may be coming. In general, the market is trying to tell us its vision of the future. On the other hand, if you jumped onto the energy train in the past 12 months, chances are you are smiling right now (if you didn’t try to catch the oil bottom of 2016 instead!). If you have little exposure to energy (like me), your portfolio is probably suffering a little bit more. markets, you will notice that the S&P 500 got very close to being in a bear market (-20%), but the only index having major problems currently is the Nasdaq (mostly driven by tech stocks). Between Jan 1 st and June 2 nd, the Canadian market is almost flat. The Canadian market went through a quick correction between April 4 th and May 12 th of this year, but the market is somewhat improved since then. Some are more painful than others, but since there is little you can do, you might as well not spend too much time discussing the definition of the current market. I don’t give additional “points” for the intensity (how fast it drops) or the length of the correction or bear market.
#Intensity synonym pro
We had a funny discussion on a recent DSR PRO forum where we were discussing the type of bear market we are in the midst of today. This does nothing to help supply chain disruptions across many industries, a war is going on in Eastern Europe, and interest rates are being raised routinely by central banks. Inflation keeps rising, and variants of Covid are forcing lockdowns in China. Since the beginning of the year, it seems that we keep reading more bad news. Sector allocation calculated by DSR PRO Are We In A Bear Market? Is The Recession Coming? IShares S&P/TSX 60 ETF (XIU.TO) annualized return (since Sept 2017): 11.04% (total return 63.00%) SPDR® S&P 500 ETF Trust ( SPY) annualized return (since Sept 2017): 13.54% (total return 80.89%) Total return since inception (Sep 2017- June 2022): 89.88%Īnnualized return (since September 2017 – 56 months): 14.73%
Original amount invested in September 2017 (no additional capital added): $108,760.02. Let’s start with the numbers as of June 3rd, 2022 (around 10am):
Some months we might appear to underperform, but you must trust the process over the long term to evaluate our performance more accurately. I do this to show my readers that it is possible to build a lasting portfolio during all sorts of market conditions. I decided to invest 100% of this money in dividend growth stocks.Įach month, I publish my results on those investments. In September of 2017, I received slightly over $100K from my former employer which represented the commuted value of my pension plan.
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