A disciplined approach to investing
Hello.
I’m Tim Buckley, Vanguard’s CEO.
Recent events have added a new dimension of risk to the markets.
Beyond the very real human cost, the invasion of Ukraine by Russian forces has resulted in increased market volatility and significant sanctions. Further economic costs in the form of rising energy prices and additional supply chain risks are likely to follow.
We all know that risk and volatility are part of investing, but they can test us. It is tempting to move to the sidelines until the uncertainty passes.
Whether the markets have reacted to geopolitical risk, fears of inflation, or even a pandemic, time has shown that the best strategy is to stay diversified and invested. Don’t overthink it. In 30 years, I have yet to meet the investor who can successfully decide both when to exit the market and when to get back in. Rebounds can come as quickly and as unexpectedly as the selloffs they follow.
If you maintain your perspective and focus on the long term, you will come out closer to your goals. If those goals haven’t changed, your investment approach shouldn’t either – even in times like these.
The history of geopolitical risks demonstrates that markets are resilient. Over time, inevitable market valleys give way to higher peaks. Stay focused on your goals and maintain your disciplined approach.
As always, we’re here to support you, our valued clients.
Thank you for your trust in Vanguard.
Recorded on: February 28, 2022
The information contained in this material may be subject to change without notice and may not represent the views and/or opinions of Vanguard Investments Canada Inc.
Certain statements contained in this material may be considered "forward-looking information" which may be material, involve risks, uncertainties or other assumptions and there is no guarantee that actual results will not differ significantly from those expressed in or implied by these statements. Factors include, but are not limited to, general global financial market conditions, interest and foreign exchange rates, economic and political factors, competition, legal or regulatory changes and catastrophic events. Any predictions, projections, estimates or forecasts should be construed as general investment or market information and no representation is being made that any investor will, or is likely to, achieve returns similar to those mentioned herein.
While the information contained in this material has been compiled from proprietary and non-proprietary sources believed to be reliable, no representation or warranty, express or implied, is made by The Vanguard Group, Inc., its subsidiaries or affiliates, or any other person (collectively, "The Vanguard Group") as to its accuracy, completeness, timeliness or reliability. The Vanguard Group takes no responsibility for any errors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this material.
This material is not a recommendation, offer or solicitation to buy or sell any security, including any security of any investment fund or any other financial instrument. The information contained in this material is not investment advice and is not tailored to the needs or circumstances of any investor, nor does the information constitute business, financial, tax, legal, regulatory, accounting or any other advice.
The information contained in this material may not be specific to the context of the Canadian capital markets and may contain data and analysis specific to non-Canadian markets and products.
The information contained in this material is for informational purposes only and should not be used as the basis of any investment recommendation. Investors should consult a financial, tax and/or other professional advisor for information applicable to their specific situation.
In this material, references to "Vanguard" are provided for convenience only and may refer to, where applicable, only The Vanguard Group, Inc., and/or may include its subsidiaries or affiliates, including Vanguard Investments Canada Inc.