Worried about tumbling stock markets? Avoid hasty decisions.

Sharp fluctuations in the stock marketsAn exchange, such as a stock exchange, is a market where investors can buy and sell securities, including shares and options.

In order for a company to be listed on an exchange, it must meet certain criteria and regulations, relating to accounting practices and information for shareholders, for example. 
often make the news. Like some investors, you might be afraid of losing a large portion of your savings and may be tempted to adopt new investment strategies.

Don’t make hasty decisions. The consequences could be serious.

Keep a clear head

Choose investments that are aligned with your financial objectivesThe financial objectives of a person or company are the financial results they would like to achieve by applying a strategy and an action plan. . Don’t make a radical change in your investment strategy simply because the markets have taken a nosedive.

Remember though to revise your strategy if your goals or your financial situation changes.

Ask an authorized representative for help. Discuss your situation with your representative and ask questions.

Whether the markets are up or down, follow these 3 rules.

  1. Stay calm. Panic or euphoria can lead to poor decisions.
  2. Choose your investments in relation to your financial objectives, risk tolerance and investor profile.
  3. Consider diversifying your portfolioA portfolio is a group of various investments made by a person or a company.

    For example, an investor’s portfolio can contain shares, bonds, mutual funds, options and other financial instruments. 
    based on your situation. By diversifying your investments, poor performances might be offset by solid returns generated by other investments.
Warning

Be careful!

Con artists often prey on investor fears and nervousness to tout the merits of dubious investments. They approach investors with promises of high returns on investments they claim will shelter them from market downturns.

If you’re the target of this kind of scam, don’t hesitate to contact the AMF.

End of the warning

Don’t fall prey to con artists

  • Check that the person and firm you are dealing with are authorized to offer you the investment. Call the AMF Information Centre at 1 877 525-0337 or consult the Register of firms and individuals authorized to practise on the AMF website.
  • Be wary of promises that appear to be attractive and without any risk. In general, the higher the return, the greater the risk. If it seems too good to be true, it probably is!
  • Don't be pressured into buying. Gather information before making an investment decision.
  • Ask for a prospectusA prospectus is a detailed information document that a company must prepare to be able to sell securities (such as shares) to the public.

    It must provide full, true and plain disclosure of all material facts likely to affect the value or market price of the security in question.  
    so that you have detailed information about the investment and its risks. If the person cannot provide a prospectusA prospectus is a detailed information document that a company must prepare to be able to sell securities (such as shares) to the public.

    It must provide full, true and plain disclosure of all material facts likely to affect the value or market price of the security in question.  
    or delays in doing so, don’t invest.