COVID-19 – Message to our investors

COVID-19 Supporting you is our priority

An unprecedented situation

Things may feel uncertain right now, but Desjardins is making every effort to support you and offer insight into your investments.

We're here for you.

Stronger together

Desjardins is here for you and your community. That's why we're donating $475,000 to United Way of Canada, the Canadian Red Cross, Feed Ontario and Food Banks of Quebec. These organizations are helping families meet their basic needs during the pandemic.

Learn how Desjardins is supporting Canadian communities during the COVID-19 crisis External link. Opens in a new window.

Our financial strength will protect your assets

The COVID-19 situation is changing rapidly and causing uncertainty throughout the world. We want you to know that Desjardins currently has more than $25 billion in capital. Our financial strength will protect your assets.

Learn more about Desjardins's financial strength External link. Opens in a new window.

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COVID-19 and your investments

A look back

For some perspective on the turbulence we're seeing right now, let's look back. Historically, markets have always had their ups and downs, but in the long run, they continue rising.

Diagram showing the evolution of a $100 investment from 1980 to 2019 and showing that, despite various crises and corrections, markets 
gain over the long term.

Staying the course

Periods of decline are usually followed by a strong recovery. As a result, investors who head for the exit during a market downturn miss out on the recovery that often closely follows.

The following chart illustrates the profits that would have been lost from missing the best days on the stock markets over a 24 year period.

Diagram comparing returns from a $10,000 investment in the S&P/TSX index from December 31, 1995 to December 31, 2019 and showing that it is 
more profitable to stay invested over the long term.

Keeping emotions in check

In times of turbulence, it's perfectly normal for investors to run the gamut of emotions. The curve in the following figure shows the cycle of emotions most investors go through as markets fluctuate.

Diagram showing stock market fluctuations and the reactions that most investors have.

We're here for you

Reach out to your representative for any questions you may have.

Articles for additional insights

FAQ - COVID-19 - Message to investors

In general, stock prices change every day based on supply and demand. Stock prices can also fluctuate for technical reasons, or in response to events outside the markets—like conflicts, pandemics and financial crises. But what goes down must come up: no matter how much the markets drop in a given year, or why, they generally bounce back in the following year.

Don’t let what you see in the media frighten you. The markets may be turbulent, but that doesn’t necessarily reflect what's really going on with your portfolio. Declines like the one we’re seeing now show how important it is to have a diversified investment portfolio External link. Opens in a new window that will help you weather the storm.

There’s no way to predict stock market performance. That’s why it pays to keep investing regularly. Take advantage of market lows—don’t just buy when things are rosy and prices are high. Setting up automatic investments can help you get the lowest possible average cost per share or security and capitalize on market opportunities.

The best way to offset market risk is by diversifying your portfolio, either by asset class or geographic region. Diversity provides protection during volatile periods.

It’s impossible to predict how big this market decline will be or how long it will last. However, based on previous bear markets, we do know this much:

  • The current bear market isn’t structural or cyclical—it’s event-based, meaning it was triggered by an outside event, the COVID-19 pandemic.
  • Over the last 100 years, there have been over a dozen corrections of more than 20% on the S&P 500 Index. The corrections lasted an average of 22 months and showed an average decline of 42%. In terms of market rebounds, the average has been 166% over 54 months. The recent correction on the S&P 500 was 35% in just 40 days, making it a much faster drop than usual.1
  1. Source: Marc Provost, Vice-President and Co-Chief Investment Officer, Public Markets and Organizational Strategy, Desjardins Global Asset Management.