Renaissance Advisor

The Way Forward: How should investors be planning today?

Two years after the market crash of 2008, many investors are still trying to figure out what their investment strategy for the future should be. Although 2009 saw one of the strongest market recoveries on record, the situation has been a lot more unpredictable this year. As a result, investors remain cautious about investing in equities even during market upswings.

With interest rates still low, however, that leaves many investors looking for an effective strategy to build wealth over the long term.

Below are some facts that you, as an investor, might want to consider:

Acting out of fear has a cost: Investors in the S&P/TSX Composite Index who conquered their fears and stayed the course would have regained more than half their losses by the end of 2009.

Times of fear offer opportunities: The bottom of the 2008/2009 financial crisis was the point of maximum financial opportunity. But ample upside potential still exists for long-term investors.

There’s a risk in not taking risk: Investing solely in low-risk, low-return investments can increase the risk of failing to accumulate enough capital for retirement.

Protecting against inflation is key: Investing for a long-term return greater than the rate of inflation is essential to maintaining or increasing real-world purchasing power.

Risk and reward must be balanced: A professionally designed and managed portfolio can invest in multiple asset classes to pursue long-term growth above the rate of inflation.

Renaissance Investments’ brochure The Way Forward discusses all of these themes in detail, covering what market cycles, changing sentiment and inflation mean for investors. Replete with helpful graphs and charts, it is a tool that offers insights for those who are uncertain about their current investment strategies or looking to move in new directions.

Download The Way Forward or contact your financial advisor for more information.