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Jordan Turcotte

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Jordan Turcotte

March 11, 2025

Economy News
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Investment Lessons From 2020

I’m sure nearly all of us remember where we were and what was happening in March of 2020. Nearly five years ago to the day I took this photo of my desktop on March 16th as I knew we were witnessing history in real time. Stock markets had just fallen by nearly 12% in a single day, marking the third worst trading day in stock market history. This same day, COVID-19 cases had barely passed 180,000 globally with only a few hundred cases in Canada, and Saskatchewan having our first case only a few days prior.

 

Two computer monitors displaying market data and a news station.

 

In just 33 days between February 19th and March 23rd, the global stock market (as measured by the MSCI World Index) fell by 34%. But for most of us, the impact was not just on paper. By the end of the month, I was the only member of my family still working and not laid off. Like many, I was fortunate to be well supported by technology and the ability to work from home to ensure that my clients were supported the entire time.

During this market crash, investors learned many valuable lessons that continue to hold true today.

 

Lesson #1: Staying Invested

During the crash, everyone wanted to know if they should sell their holdings, buy gold, shift to government bonds, or simply put their money under their mattress. As an advisor, my job is to help clients make logical rather than emotional decisions with their money. The truth is, money is always emotional, especially when markets are in turmoil. My clients were counting on their portfolios to fund their lives and these were (as we all got sick of hearing) “unprecedented times”.

My advice to my clients then is the advice that has stood the test of time during periods of volatility and uncertainty; “stay invested.” If your portfolio was constructed with your life and your goals in mind, then it should account for periods of volatility. History shows that markets do recover and 2020 was no exception. Just a few months after the market bottomed, most markets rebounded to all-time highs. Investors who remained patient and focused on their long-term goals ultimately came out ahead.

 

Lesson #2: What Volatility Feels Like

For most investors, 2020 was the first real experience of a significant stock market crash since 2008. If you started investing in 2009, you would have lived through one of the greatest bull markets of all time, and were likely unfamiliar with the feeling of seeing your investments drop so sharply in such a short period of time. It’s one thing to read about it or look at a chart, but it’s a whole other thing to experience it yourself. How you felt about and handled the stock market crash of 2020 can say a lot about your personal risk tolerance. Since then, markets have continued to experience ups and downs as they always have, reinforcing the truth that volatility is inevitable. No matter how good a market has been, there’s no doubt that sooner or later downturns will come - your portfolio should be structured to account for this reality.  

 

Lesson #3: The Importance of Diversification

While the events of 2020 effected every nation on earth, some sectors were hit much harder than others. Travel, energy, and retail sectors suffered steep losses, while technology and healthcare stocks rebounded quickly, with some even thriving. As has been the case historically, investors with well-diversified portfolios across different industries and asset classes experienced less extreme losses, and recovered quicker. Diversification remains a cornerstone of smart investing. A mix of stocks and bonds across sectors and geographic locations help cushion downturns and helps prevent any single event from having a catastrophic impact on your portfolio.   

 

Lesson #4: Every Time Feels Different

Whether it’s the COVID-19 crash of 2020, the global financial crisis of 2008, or the dot com crash of 2001, every market crisis feels different. It’s easy to say “stay invested” when looking at past events, but in the moment, it always feels different. The truth is that every time feels different because every time IS different; but that doesn’t mean that time tested strategies should change. While the cause of each downturn may differ, the fundamental principles of investing do not change. The advice of staying invested in an appropriate and well diversified portfolio has historically led to positive long-term outcomes.

 

Lesson #5: If You’re Losing Sleep, Let’s Talk

During times of heightened market uncertainty, it’s not uncommon for me to receive extra calls and questions from clients. Some worry about bothering me, especially when markets are volatile. But let me be absolutely clear: if you’re losing sleep over your investments, please reach out. As an advisor, it’s my job to pay attention to market moves, economic news, and geopolitics, and I do not expect my clients to follow every development. That’s why I’m here. If something is making you anxious about your investments, a simple conversation can help. Most of the time, I don’t recommend broad sweeping changes to investments during times of heightened volatility, but having a conversation about what’s happening can provide reassurance, clarity, and confidence.

 

If you ever have questions about your investments, whether during a crisis or regular market fluctuations, please don’t hesitate to reach out.

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