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Market volatility

Worried about stock market uncertainty? Avoid hasty decisions.

Sharp fluctuations in the stock markets and the economic uncertainty they create often make headline news.

In response to this uncertainty, some investors may be tempted to adopt new investment strategies.

In times of turmoil, the AMF urges you to avoid making hasty decisions; the consequences could be unfortunate.

With the help of a qualified representative, choose a portfolio designed to achieve your financial objectives. A representative should not make major adjustments to your portfolio based on market volatility or short-term events, unless your goals or financial situation changes. That doesn’t mean you shouldn’t take an active interest in your investment. Ask questions and evaluate the situation with your representative.

Be careful, for con artists often prey on investor fear and nervousness to tout the merits of dubious investments. They approach investors with promises of high returns on investments that can sidestep market downturns. A scam could seriously compromise the fulfillment of your objectives or make your hard-earned money disappear. Don’t let stock market uncertainty make you more vulnerable to fraud.

Whether the markets are up or down, the AMF offers the following tips:

  • Remain calm; panic can lead to poor decisions. Even if an investment is legal, it may not be right for you.
  • Contact the AMF Information Centre or check the AMF website to determine if the person proposing an investment is authorized by the AMF to do so.
  • Be wary if you’re promised high returns without any risk. In general, the higher the return, the greater the risk involved. If it seems too good to be true, it probably is!
  • Don’t be pressured into buying, especially if you’re offered products like foreign currencies or investment in tax havens.
  • Be sure to obtain a prospectus for detailed information about the investment and the risks it entails. If the person cannot provide a prospectus or delays in doing so, don’t invest.
  • Diversify your portfolio. Don’t put all your eggs in one basket. Investments with different features are likely to move in opposite directions during a given period. Some securities may remain stable or rise in value even when markets are faltering.

Information Centre
Québec City: 418-525-0337
Montréal: 514-395-0337
Toll-free: 1-877-525-0337
Fax: 418-647-9963
Email: Request for information