Canadians concerned but calm during market volatility: CIBC poll
A new survey conducted by CIBC amidst last week’s stock market fluctuations shows that although almost half of Canadians (48 per cent) are concerned about recent market volatility, among those who own investments the majority (90 per cent) have not made any changes to their holdings because of market activity.
“Our poll findings are a positive indicator that Canadians aren’t making short-term decisions about their investments based on market volatility alone,” said Laura Dottori-Attanasio, Senior Executive Vice-President, Personal and Business Banking, CIBC. “Whether it’s saving for retirement or investing for your children’s education, having a plan that supports your long-term ambitions is important to managing swings in the market and staying on track to achieve your goals.”
Other poll findings:
- Among provinces, those in Alberta (55 per cent) and Ontario (52 per cent) are the most concerned about recent stock market volatility.
- Canadians aged 55 and over are the most worried about current market fluctuations (52 per cent) compared with 45 per cent of Canadians aged 18-34.
- Very few Canadians (10 per cent) have made changes to their investments because of recent market fluctuations.
Tips for Investors:
- Talk to a financial advisor – in times of market volatility, a conversation to affirm your long-term goals and your risk tolerance can help build confidence in your financial plan.
- Don’t make changes based on headlines – reacting to short-term news, good or bad, can take your focus off long-term goals and can lead to investment choices that affect your overall returns.
- Consider your entire financial picture, not just investments – recent changes to interest rates may allow you to accelerate debt repayment or adjust your cash flow, which could free up money for your regular investment plans.
“A conversation with your financial advisor can help ensure you stay on track and have the plan that’s right for you,” added Ms. Dottori-Attanasio.