Time in the Market vs Timing the Market
Is now the right time to invest?
There is a popular phrase that gets thrown around whenever people talk about investing: “The best time to invest was twenty years ago. The second-best time is today.” That idea aligns well with how we operate at JCIC.
Firstly, invest early. Don’t wait for the ‘perfect’ opportunity. You don’t need some magic confluence of market forces to arise before you should start investing. Also, don’t be deterred by the 24-hour news cycle or short-term trends.
Secondly, you don’t need to wait until you have “enough” money to make it worthwhile. In most scenarios, a small investment today is better than a large investment at some undefined future date.
Get in, stay in, and watch your money grow. Our core investment approach emphasizes long-term discipline, diversification, and avoiding emotional investment decisions.
That’s why Cameron Scrivens preaches the idea of prioritizing “Time in the Market,” over “Timing the Market.”
Timing the Market
Just for clarity, “timing the market” refers to an investment approach where you put money into a stock right as it is about to go up in value and then sell when you believe it will start to drop. It is a very active process and to be honest, unless your crystal ball is calibrated to give you precise dates, it usually doesn’t work very well. This approach is particularly popular with investment advisors who take a percentage off every transaction. More transactions means more commissions so they are incentivized to move your money around. But that is for their benefit, not yours.
If you want to learn more about JCIC’s approach to investing, you can read about our portfolios here.
Tax Season
Tax season is underway, and most tax documents are on their way to you in the mail now. For our clients with segregated taxable accounts, please note that the T3s will be mailed towards the end of March. If this applies to you, please hold off on doing your taxes until that slip has been received. The deadline for filing your individual taxes is April 30th.
If you want to connect with one of our relationship managers, please book a time by clicking the green button.
Upcoming dates to remember
Sunday March 9th – Daylight Saving Time starts
Sunday March 9th – Federal Liberal Leadership Vote
Monday March 17th – St Patrick’s Day
Friday April 18th – Good Friday
Sunday April 20th – Easter Monday
Wednesday April 30th – Deadline for filing individual taxes
Disclosure:
Although we obtain information contained in our newsletter from sources we believe to be reliable, we cannot guarantee its accuracy. The opinions expressed in the newsletter are those of JCIC Asset Management, its editors and contributors, and may change without notice. Any views or opinions expressed in the newsletter may not reflect those of the firm as a whole. The information in our newsletter may become outdated and we have no obligation to update it. The information in our newsletter is not intended to constitute individual investment advice and is not designed to meet your personal financial situation. It is provided for information purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor or a group of investors. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. We strongly advise you to discuss your investment options with your Relationship Manager prior to making any investments, including whether any investment is suitable for your specific needs.
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