
For Any Investor, There’s Equity In Equities
If you’re feeling a little uncertain about what’s best for your money these days, it’s not surprising. Well intentioned advice is everywhere, whether or not you ask for it. On the radio, in the newspaper, from your co-workers, and colleagues. Perhaps from even your parents or grandparents.
Are they right? Who knows? But, regardless of what you hear, there are two undeniable facts. First, one of the most important aspects that must be taken into account when deciding where to put your money is you – your circumstances, goals, personal preferences and the amount of time you have to invest.
Second, for even the most risk-averse investor, there is a place for at least some equity investments in their portfolio. Why? Because compared to fixed income investments, equities have greater potential to produce growth in your portfolio over the long-term, and they can do more to protect against inflation eroding your purchasing power so the value of your money will be maintained.
The chart illustrates this point. Looking back at $1 invested in numerous asset classes over 200 years ago, the trend shows that despite events such as wars, recessions, and numerous periods of financial turmoil, markets have continued to grow.
The chart also shows that equities by far have the biggest growth trajectory of any other asset, and represent the best option for preserving your purchasing power over time. The real return on that dollar, that is the return in excess of inflation, is close to $700,000.
Keep in mind that equity investments come in all different forms. Not all will be suitable for you, so careful selection to ensure your portfolio aligns with your time horizon and comfort level with risk is key. Armed with information about you, your Consultant can recommend options that will help you achieve your goals without compromising your comfort level with risk.
David W. Page is a Kamloops rider who is very active in his community and is a member of the RFBA
Phone: (250) 372-2955 Toll Free: 1-800-897-9559
Fax: (250) 372-1567
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For Any
Investor,
There’s
Equity In
Equities