Update and Information

Normally, a popular saying in this season is: “April showers bring May flowers.” We think that should be amended this year to read: “April distance will lead to a normal existence!”.

In the past week there has been progress made in the fight against the virus. More progress will be made in the next week, and the weeks following. We know there will be setbacks, and we may never get back to the way it was before this virus (just like 9/11 changed air travel for ever), but life will go on. It’s human nature to adapt. It is also human nature to worry, and get emotional. Since your March account statements will arrive in the next week or so, we wanted to connect and discuss investor emotions and how responding to them can have serious negative consequences to your long-term success.

Research¹ indicates a loss causes about twice as much pain as a gain causes pleasure. During periods of market volatility investors experience the sense of loss more intensely. (¹Kahneman, D. and Tversky, A. (1979) "Prospect Theory: An Analysis of Decision under Risk")

We have had a number of phone calls and video conference meetings over the past few weeks, and look forward to many more. Our clients continue to be protected from the worst of this market pull back. So far, your investments are doing exactly what we expect them to do, and you are being protected far better than others who were taking too much risk heading into this year. Discussing your performance, and showing you how it compares to the markets helps put this in perspective and alleviate concerns. If we haven’t spoken yet, and you want to please don’t hesitate to schedule a call or video conference: chris.gaudet@raymondjames.ca; bharathi.sandhu@raymondjames.ca; ed.tougas@raymondjames.ca

However, we know that some of you don’t even want to talk about it and would rather take the “out of sight, out of mind” approach. We fully support that method too! If you are in this camp, we would be pleased to help you set up paperless statements instead of mailed statements. Ask us how.

Treat your Raymond James investments like you treat real estate

We all know that real estate is a great investment over the long term. It is also one of the biggest investments we will make in our lives. Could you imagine if you got a statement each month showing the market value of your home? There could very well be 5% 10%, 15% or even 20% swings month to month depending on the market and the demand. On a home worth $800,000 that represents a swing anywhere from $40,000 to $160,000. Seeing that on a statement each month would trigger negative emotions. Would you sell your house? Of course not, because you have to live somewhere. But say it was a cottage, or an investment property, would you sell it? All things considered, you shouldn’t because it is a long term investment and will recover.

The same argument goes for your investments here at Raymond James. Over time, just like real estate, they go up.

Attached to this e-mail we’ve prepared two easy to read 1-pagers that outline Canada’s Economic Response Plan, and also the Canadian Emergency Response Benefit. You may not be impacted by these, but maybe you know someone who is. Please don’t hesitate to share with them.

Be well and talk soon,

Bharathi Sandhu is a Sr. Business Development Specialist with Raymond James Ltd. Information provided is not a solicitation and although obtained from sources considered reliable, is not guaranteed. The view and opinions contained in the article are those of the author, not Raymond James Ltd. This article provides links to other Internet sites for the convenience of users. Raymond James Ltd. is not responsible for the availability or content of these external sites, nor does Raymond James Ltd. endorse, warrant or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same privacy policy which Raymond James Ltd adheres to. Raymond James Ltd. member of Canadian Investor Protection Fund.