Nearly half of respondents (46%) believe their investment portfolios have completely recovered from the setback of the 2008-2009 global financial crisis. However, only 26% can correctly state what was actually needed in return to make up for any financial setback they may have experienced.
On average, Canadians believe they lost between 10 and 50% of their investment portfolio due to the market slide of 2008; however, one-in-five (19%) are unable to identify how much they lost.
Despite knowing a significant portion of their portfolio was lost during the downturn, half of Canadians (51%) did not make any changes to their investment strategy in reaction to the market slide and decided instead to “wait it out.”
These findings underscore the risk that Canadians are underestimating the impact that market setbacks have on their portfolio and the importance of downside protection.
In today’s volatile markets, preserving value by reducing exposure in negative periods and participating in positive markets is becoming increasingly important to many investors.