Market dips tend to spark fear. It’s a natural reaction. When stocks slide, and headlines shout panic, many investors feel the urge to sell and run. However, reacting to fear rarely leads to long-term success. In fact, some of the best buying opportunities in history have come during periods of widespread worry. Fear makes prices fall faster than fundamentals. That disconnect between value and emotion can be where real opportunity lives.
What to consider
Let’s step back. The current market dip on the TSX isn’t driven by collapsing businesses or a financial crisis. It’s about uncertainty. Tariffs, interest rates, inflation, global instability. These are real concerns, but markets often overreact to short-term risks. When good companies with strong earnings and stable dividends get swept up in fear, stock prices fall – even if nothing has changed about how the business actually performs. That’s when the brave, or the patient, step in.
Ignoring fear doesn’t mean pretending risk isn’t there. It means zooming out. If your timeline is five, 10, or 20 years, market dips become noise. Look at the TSX over the past few decades. It has weathered recessions, oil crashes, the dot-com bubble, the 2008 financial crisis, and a pandemic. And it still moves up over time. History tells us the market will recover. The only people who miss out are those who panic and sell at the bottom.
Navigating a market dip starts with your mindset. Focus on quality. That means companies with strong cash flow, a durable competitive advantage, and consistent dividends. Think about businesses that offer something people will keep using no matter the economy. These include utilities, telecoms, energy infrastructure, and essential goods.
Now, and this is important, if because of the recent and on-going volatility you’re sensing you’re (fundamentally) in the wrong investment – meaning, you’re losing sleep, you’re nervous and you’ve determined you’re not the high-risk investor you thought you were – then contact us. At times like these, it is only natural to ask questions about your portfolio results and overall financial plan. If you have concerns about your portfolio, we are here to help. If you would like to speak to a WP representative about your investments, book a personal consultation.