Market Update – October 2022

‘Perspective…’

While this market correction hasn’t been deep, particularly for the Canadian side of portfolios, the length of this pullback may be bothersome. That said, corrections or bear markets of this length are completely normal for investors.

Let’s look at some dread short-term and then look at history through some visual charts for some banks, tech, stocks and utility stocks – for perspective

National and Royal Bank so far – current year 2022 (above) and for the past ten years (below).

National Bank – Over ten years, the stock has gone from $24 to $90.94 (current pullback value).  That is an average annual growth of 27.89%, excluding the dividend.  The current dividend of $3.68 equates to a 4.04% yield today.  However, if you bought the stock ten years ago at $24, your current yield would be 15.3%.  ($3.68/$24). 

Most of the banks make about $1 billion dollars each month.  Most raised their dividends again last quarter and all of them pay their owners more than they do depositors. 

Technology led the market over the previous three years but is the worst performing sector this year.

Microsoft and Apple so far– current year 2022 (above) and for the past ten years (below).