To Clients: Staying invested long-term

(August 2008) The argument in favour of long-term investing isn’t new but it’s a story that occasionally bears repeating. Use this customizable template letter to touch base with your clients about the ebbs and flows of the markets.

Dear [Client’s name];

When we first put your investment portfolio together, we discussed the importance of long-term thinking. That’s because market returns are best measured over decades, not years or months. But sometimes when the markets are soaring, it’s easy to forget that there will be times when the economy isn’t quite so robust. This is one of those times. I’m writing this letter to remind you to focus on your long-term goals.

Market volatility is not a time to sell off in a panic. Someone who had panicked (or declined to invest) when the markets were down in late 2002, for example, would have missed out on all of the growth experienced a few years later.

Now, think back to all the events that took place in our lifetime. Remember the infamous “Black Monday” of October 19, 1987, when the Dow Jones dropped 22%? Newspaper headlines and TV reports were full of doom and gloom, and many investors were desperate to sell their funds. The result of these scenarios: those who rode out the rough spots and stayed in the markets are certainly better off today.

More Creating the right asset mix

• Hot Canadian market starting to weaken

• Foreign equity down, but not out

• Bond markets improve thanks to credit crisis

• Commodities on a bumpy, but profitable road

• Cooling real estate industry still a good investment

• Asset allocation can make or break a portfolio

• To Clients: Portfolio rebalancing

• To Clients: Staying invested long-term

Back to mainpage

You may be frustrated with the markets and wondering what the asset-backed commercial paper crisis all means, and that’s natural. But history has shown that cooler heads prevail over the long run.

If you have any questions or would like to discuss your situation in greater detail, please don’t hesitate to call me to book an appointment. I’d be happy to explain your options, discuss risks, reallocation and a suitable mix of assets for you, if necessary, and provide a little extra perspective on the markets.

Sincerely,

[Your signature]

[Your name]

(08/04/08)