The tough have indeed had to “get going” as we contend with these daily, wild swings in the stock market, certainly in March, but even more so since the beginning of April. The relief rally we saw on April 9th appears to have been short-lived as most woke up the morning of the 10th, to the stark reality that the maniac in the White House is still imposing 10% tariffs on 90 countries and a whopping 125% for China. Where Canada & Mexico are concerned, goods not covered under the USMCA trade pact will continue to have 25% tariffs and 10% applied to energy and potash. If there’s anything positive to say about our situation here in Canada (and Mexico), it appears the bulk of goods covered under the trade agreement have been excluded from the US tariff policy - for now.

How does one grapple with this absurdity? How does a sane, pragmatic investor deal with a situation that has been created by one individual, supported by his sycophantic minions in the White House and beyond? WE WAIT IT OUT. Why? Because the American consumer (including those who voted for him) will turn and we’re already seeing evidence of this happening.

This week especially, we’ve witnessed Trump’s approval ratings tank. If history tells us anything, the one thing he can’t abide is bad ratings. The other thing this news-addicted insomniac is desperate to avoid is seeing the words “Trump Recession” splashed in red all over the headlines.

Let’s turn our attention to some helpful historical data you may not have not been aware of. Below, I’ve included a chart highlighting the TSX Worst Quarterly Performance since 1950. What you’ll see is that when we experience periods of meaningful double-digit declines, they are typically followed by very strong rebounds over the next months, quarters and years.

Not that any of you necessarily need reminding, but I will include one more graphic (below) that I think is helpful. What you’re seeing there is that historically, the odds of experiencing a positive return drastically increases with longer holding periods. As always, time and your patience remains the key to all of this.

It goes without saying but I want to remind you, if you’re at all concerned, let’s talk. I know it’s hard to ignore the headlines so, even if you just need a bit of hand-holding, do not hesitate to reach out.

If you’re not yet a client, there’s no time like the present to get a complimentary second opinion on your portfolio.

Libby

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