What we can say however is that we saw the high level of risk in the markets the same as everybody else did. It did not take a genius to see this was a pretty likely outcome for both the past quarter and likely for the next several quarters. The key difference is that we were not motivated to ignore the risk in the markets in order to exploit retail investors heading into the hype of the RRSP season.
The solution is for investors to follow a comprehensive investment policy statement. Based upon the policy guidelines it is possible to use RRSP deposits to re balance to the low end of the high risk assets and the high side of the low risk assets. While we do not suggest you can time the markets, we do suggest your financial advisor/salesperson has the flexibility to make tactical decisions to keep you off the train tracks until the obvious danger has passed. After all, what are you paying for if not prudent advice and commonsense for your investing strategy.
Or, referring back to the original blog’s ending statement; it was a time “not to be all in” to the equity markets. At the end of the day the issue is rarely about good forecasting and almost always about having a quality strategy and an advisor/salesperson who follows your investment plan first and his/her commission schedule second.