Despite the market decline over the past month, this volatility reflects the normal functioning of healthy, expanding capital markets, says Ian Russell, president and CEO of the Investment Industry Association.
Since the beginning of 2003, the average value of Canadian stocks, as reflected in the S&P/TSX index, has more than doubled. Since the end of 2005, they have increased by 30%. And that includes the corrections of the past month.
“In short, we’re in a period of remarkably strong growth,” he explains. “And no investor should feel unduly concerned about corrections in such a strong market.”
If this correction leads some investors in Canada and the United States to examine more closely their levels of risk, Russell says that is also beneficial.
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