How often do you check your portfolio?

Jean Hénault, Portfolio Manager with TWM Group at iA Private Wealth presents our Chart of the Month. You can also see this video in French presented by Nader Hamid by clicking here

This month, our selection highlights the probabilities of having a positive return over a given time period. Our chart focuses on the US stock market over a period of 30 years.

If you’re the type of person who looks at your portfolio daily over a cup of coffee, you’ll likely be disappointed. That’s because only 54% of days are positive, meaning on a day-to-day basis, half of the days are negative.

However, if you look at your portfolio monthly, there’s an improvement. The probability of having a positive month increases to almost 65%. 

And on an annual basis, that rises to 83%, meaning out of every ten years, only two years will be negative, while eight should be positive. 

TWM Group - Chart of the Month - Positive Returns by Frequency

So, the more often you look at your portfolio fluctuating over a short period, the more likely it is that you’ll be disappointed and draw false conclusions.

The Key Takeaway?

Daily and monthly fluctuations are not indicative of long-term performance. On behalf of TWM Group, thank you for watching our Chart of the Month. See you next time.

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