Assante Hydrostone’s blog and news updates.

As the economy recovers, staying the course is more important than ever

Published on: July 27th, 2021

You have probably heard that when times are tough – like a recession or market correction – that’s it’s wise to “stay the course.” Ironically, with a recovering economy and robust investment markets, this advice bears repeating. Here’s why.

Money to spend

A forecast from the Conference Board of Canada in March noted that Canadians saved almost 15% of their income last year, the highest rate in 35 years. That’s an average of $5,000 per person. The Board predicts that consumers will be spending big, driving the economy to grow by 5.8% in 2021.1 In April, the Bank of Canada said households look intent on spending some of the billions built up during the pandemic either because they cancelled purchases or had no place to spend the money.2

The overheated housing market suggests Canadians are spending here too. Prices have increased more in Canada than in any other G7 country, with the national average home price reaching a record $716,828 in March, up 31.6% from the same month last year.3,4

Some are predicting another “Roaring Twenties” with consumers spending freely – even recklessly – as we celebrate the end of pandemic restrictions. At times like this, it’s easy to be blown off course on the way towards your long-term goals, like a successful retirement. What to do? Keep these key principles in mind:

  1. Keep investing. No one would begrudge Canadians some enjoyment spending after last year but stay committed to your future too. Keep up or begin a regular investment program so that some of your discretionary income is always earmarked for a future that will come, come what may.
  2. Take a portfolio approach. If the markets continue at their current pace, the temptation of exotic investments is likely to increase. The run-up in cryptocurrencies and the GameStop fiasco suggest some investors have become less fearful, even complacent about their money. Staying true to a well-constructed, diversified portfolio aligned to your goals and risk tolerance provides a bulwark against fads, impulsive actions, and herd mentality.
  3. Build resilience. “This too shall pass” is a great mantra in both bad times and good. A prolonged expansion can lead us to forget about the tough times and ignore some of our safeguards, like an emergency fund or our insurance coverage. Keeping these safety nets in place and strong while we can will prepare us for the next financial challenge we’ll face.

Value of advice

Studies have shown that one of best defences against investor behaviour that destroys wealth is having an advisor. Hand-holding, providing perspective, reminders about your plan and goals are all as important as the investment work we do. Let us help you be successful today and tomorrow.

1 Josh Rubin. “Canadians Boosted Savings During COVID, and Now They’re Ready to Spend.” Toronto Star. Torstar Corporation, March 30, 2021,

2 Canadian Press. “Pent Up Wave of Consumer Spending is Coming, Businesses Tell Bank of Canada Survey.” CBC News, April 12, 2021, 

3 Paul Vieira. “Canadian Housing Boom Raises Concern, With Homes Selling Far Above Ask Prices.” The Wall Street Journal, March 24, 2021,

4 Canadian Real Estate Association (CREA). “National Statistics: Record Home Sales in March 2021, New Supply Increases.” CREA Stats. April 15, 2021,

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