Episode 159: Navigating Big Market Drawdowns: Strategies for Canadian Investors

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Are you building your financial or investment portfolio just to watch it bleed during a downturn?

If recent market drawdowns and dips have you wondering whether your DIY strategy is holding up, you’re not alone. Many investors are facing steep market drawdowns—some as high as 36%—and struggling to recover. This episode tackles a sobering truth: when your portfolio drops, the climb back up is steeper than you think. Jon Orr and Kyle Pearce break down why a “protect first, grow second” mindset could be the most important shift in your investing journey.

 Here’s what you’ll walk away with:

• A clearer understanding of how market drawdowns impact long-term growth—and why avoiding them matters more than you think.
• The core elements of a rules-based system to manage risk like the pros, even if you’re investing on your own.
  A side-by-side look at popular assets like the S&P 500 and Bitcoin, showing how trend tracking and volatility signals can guide smarter entry and exit decisions.

Press play now to learn how top investors manage risk and why that could be the missing piece in your wealth-building strategy.

Resources:

• Ready to take a deep dive and learn how to generate personal tax free cash flow from your corporation? Enroll in our FREE masterclass here. 
• Book a Discovery Call with Kyle to review your corporate (or personal) wealth strategy to help you overcome your current struggle and take the next step in your Canadian Wealth Building Journey!
• Discover which phase of wealth creation you are in. Take our quick assessment and you’ll receive a custom wealth-building pathway that matches your phase and learn our CRA compliant tax optimized strategies. Take that assessment here.
• Dig into our Ultimate Investment Book List
• Follow/Connect with us on social media for daily posts and conversations about business, finance, and investment on LinkedIn, Instagram, Facebook [Kyle’s Profile, Our Business Page], TikTok and TwitterX.

Calling All Canadian Incorporated Business Owners & Investors:

Consider reaching out to Kyle if you’ve been…

• …taking a salary with a goal of stuffing RRSPs;
• …investing inside your corporation without a passive income tax minimization strategy;
• …letting a large sum of liquid assets sit in low interest earning savings accounts;
• …investing corporate dollars into GICs, dividend stocks/funds, or other investments attracting cordporate passive income taxes at greater than 50%; or,
• …wondering whether your current corporate wealth management strategy is optimal for your specific situation.

Understanding drawdowns is critical for anyone serious about wealth building and financial independence. In today’s volatile stock market, a strong rules-based system can help investors—especially business owners and DIY planners—prioritize risk management over blind growth. This episode explores how smart diversification, trend tracking, and asset rotation protect your capital gains and support long-term net worth growth. Whether your goal is early retirement, retirement planning, or simply optimizing your rate of return, mastering investment strategies rooted in financial education and market trends is essential for wealth creation, asset accumulation, and lasting financial security.

Transcript:

Jon Orr: Let’s talk about something a little timely, you know, and I think if you’re looking at your portfolio right now and you’re looking at, say, your investments, your positions, you’re seeing, you know, at the time of this recording, you’re seeing some drawdowns in, say, the stock market. You know, looking at the S &P is currently, you know, down. think we’re looking at…

16 % from the cycle highs right now at the time of this recording, and that’s not as exactly as low as it’s gone. And in this episode, we want to talk about drawdowns. We want to talk about this stat that we’ve been constantly thinking about, and it’s helped us develop a system and a rules-based approach and follow rules-based approach about how to protect our

you our investments, you know, how, and it really is just thinking about them to protect first, grow second. And I think that’s, that’s the big idea here we want to share with you today. And the, and the stat here is that, you know, so we’ve got some real retail investors that are down, say from, from, know, overall, you know, this year down maybe 36%. Oh, that’s like an average retail investor is down 36%.

From their from their highs that in this year now the the hard-pinting thing to think about is that if you’re down 30 % you’re down 20 % like but if you’re down 30 % You have to you basically have to gain almost 58 % upside just to get back to even and That that part that part hurts a little bit because you’re it’s not just a 30 % I gotta I gotta gain 30 % back just to just to give a break even it’s not it’s not how that works

because it’s easier to understand, I guess, if you say, look, I lost 50 % of my portfolio, so now I’m half as rich. Well, you’ve got half now to work with, but then you wanna get back to 100%. Well, if you have to grow that 50 % by exactly that amount to get back, which is 100 % growth to get back to that same level. So when we have drawdowns, the way we’re having drawdowns now, when you have to reverse engineering go, I need to bring that back to even.

It’s a lot more growth that we have to get based off where we are now to say, look, is it likely that I get a 58 % growth in the year just to get back to even to where I was? So which makes us go, it easy? Like it’s not easier, but is it worth looking at on figuring out how can I protect that and avoid a drawdown versus continually just invest to get growth over the long term? And that’s what we want to talk about here.

Kyle Pearce: I love it. I love it. Yeah. And you brought up some, some interesting numbers there. So, you know, yeah, state saying it again, if your portfolio is down 30%, you’re going to need about 43 % to get back to where you were. If you’re at what people, most retail investors are down 36.7%, that’s where you’ll need that 58 % return just to break even. So, you know, when you start thinking about this, now, one thing we can say, and we’re, going to,

We don’t wanna create anxiety here. We don’t wanna create any, you know, any more uncertainty than maybe is already out there, right? We don’t want people feeling bad about themselves. However, if the approach right now is sort of doing it yourself, putting money into the market and just sort of like hoping and praying, the one thing I will tell you is that it’s way better than not investing at all.

Okay, so like we want to make sure we just get that out of the way. We’re all about optimizing here. You know, for example, someone sent me an email over the weekend and said, you know, what’s wrong with just doing this instead of that? And I was like, there is nothing wrong with it. It’s like, but you know, if you’re looking to optimize, right, and optimizing allows you to essentially try to tune things up a little bit.

And of course, if you’re listening to a podcast on wealth building, like you are here today, my guess is, is that that’s really what you’re trying to do. So make sure that you’re being cautious not to go too all in on one idea or, or to like completely throw out what you’ve been doing, but rather think about it as a consideration that you might make because

The reality is is and I think the stat this is from hedge I John you had mentioned it from one of the early look emails that we received and they were saying if you avoided the the drawdown in 2008 so if you were able to like just take zero like not just go to cash before that massive drawdown and then we fast forward all the way to today and not having added any more money or anything like that if you just let the money ride

and just got back in once things settled down, right? A year later, got back into the market once things had settled down, you would actually have double the portfolio size as of today. So when you think about that, right, it doesn’t matter if it was a dollar and now you have $2 or a million and now you have 2 million, it is substantial. And the reality is, that, you know, one of the reasons why there’s so much research suggesting not to try timing.

Jon Orr: A year later, a year later, yep.Nuts.

Kyle Pearce: is because we are human and we are emotional and we tend to do the exact opposite of what we should be doing when we do those things. Meaning instead of getting out before the market takes the big tank, you actually get out right at the bottom. And then what ends up happening is you sort of sit on the sidelines and you wait and you wait and you wait.

And then all of a sudden now it’s running away from you. And then next thing you know, you’re like, it’s five years later. And you’re like, I just hate stock investing, you know, completely right, which understandably so. So we’re not here to suggest that you just wanted like, you know, on a, on a whim, just kind of go, you know what, we’re just going to pull money out of the market. What we do want to do is equip you with some ideas that you can put into play to help you gauge and understand, you know,

Am I well diversified enough? How do I protect the pile instead of it being primarily focused on making the pile multiply it, you know, with these huge, huge numbers that, you know, we sort of have set in our own minds so that at the end of the day, slow and steady will actually help you win the race instead of trying to hit these big home runs and then potentially, you know, faltering along the journey.

Jon Orr: For sure, for sure. And just to clarify the doubling in that 27 years is your portfolio size is double what it would be worth if you went through the downturn. So it’s not just double what it’s worth, it’s double compared to where you would have been if you went into that. So which means like you got double the amount of money by just avoiding that drawdown versus what everyone else was doing.

I think what you’re bringing out about this protection, right Kyle, is that pros, pro investors are obsessing. And this is something that we take into account and treat very seriously is we assess risk. Like risk management is probably the number one thing that we need to think about when we’re investing. And when we think about becoming an investor or getting into markets or getting into real estate,

Um, or getting into a seri, any sort of say, maybe, maybe you’re a private lender or maybe you’re like investing in businesses and helping to grow business, whatever your asset class is. The pro level there is to mitigate risk. Like what is that? We used to talk about this in early episodes of this podcast about like, what is the, what is that margin of safety that we want to look at? Because if we can accept that, if we can, if we can work around developing that first.

then we can feel good about best case, worst case scenarios. And I think when you start investing, let’s say in your portfolio for your retirement purposes, and let’s say it’s in the stock market or it’s in the bond market or it’s in say, this realm is that I think a lot of us, when we start, if we are doing self-managed portfolios, we think, I’m gonna go with some ETFs and that’s gonna help mitigate some of my risk. I’m gonna be a little bit more diversified.

In the previous episode, we talked about global diversification. That’s going to help help do those things. But you also might be like, I just want to get invested because I know that long term I’m going to be better because I know that that’s what they say. It’s not timing the market. It’s time in the market. So the faster I get in, the better. But there’s going to be a point where you’re going to be like, I need to really consider and make switch the focus of. Like what I’m doing.

to being risk management first and foremost, because you’re gonna want to make sure you protect all of that growth that you’ve had and not give it back. And I think that’s where the pro level comes in, is to continually have the insight of like, how do I risk manage here? Whether I’m buying real estate or whether I’m going here or whether I’m going, I’m self-managing my own stock portfolio. How do I plan for that first? What am I doing?

to risk manage? think if we answer that question, if you can put that at the forefront, then you’re automatically going to be a little bit better off than say the average investor because you’re you’re putting say risk management as your priority.

Kyle Pearce: Hmm. You know, when I think about this, John, too, you know, just scrolling back a couple episodes where we talked a lot about diversification and talking about it from not only, and we were talking just specifically within the stock market, you know, diversifying out of say, just Canadian equities or Canadian dividend stocks or whatever it is you might be in and actually looking to

more of a global portfolio, right? We discuss these ideas around how Canada’s GDP represents less than 5 % of the world’s GDP growth. So does it really make sense for you to have 80 % of your portfolio in Canadian type assets, right? We’re not here to tell you what the right mix is, but there’s also other people that look at it say, well, you know what? The US represents the greatest percentage of GDP in the world.

So I’m going to go all in on the S &P 500. Now, it’s even worse if we pick specific companies and just go like, I’m just going to go Apple, Nvidia, Netflix, two other Tesla and somebody else. The risk that you’re taking on in doing so, even though they’ve had amazing track records and the S &P 500 in general has had an amazing track record comparatively to the rest of the world, what you also take on is the entire ride.

While it may turn out that the next 50 years are still gonna be US centric, it could also change, right? Like we don’t know what the future will hold and this is where diversification comes in. Plus just putting yourself in a position when one thing happens that it’s not all happening to you all at once in your portfolio. So as you’re growing again, first and foremost,

Getting yourself into a routine of investing is key. So don’t let this hold you back. We’re not saying you gotta know this before you start investing, get it going. You gotta create a pile that is worth risk managing, right? If your pile is $20,000, I’m telling you right now, it is not worth thinking about risk managing that pile. It might feel like a lot right now, but the reality is, is you need to focus on how do I grow that pile through what I put into it?

Kyle Pearce: as the pile grows because you’ve been contributing to it and the market has been helping you along the way. That’s when you have to start looking at this and say, okay, this is gonna matter more to me if I see this thing, you know, dwindling away. And after I hear all these stats about how long it might take me or what I need in a return in order to get back just to break even, this is where risk managing really starts to matter. And if you are a DIY person,

you are taking on that responsibility. So if you’re doing DIY, because you think you can do it better with low cost index funds than say a manager, that’s great. But you’ve now hired yourself, which means you need to go and you need to put in that extra effort in order to make sure that you take care of that pile yourself. So today we’re going to talk about some ideas and some tips.

that might be helpful for you when you’re investing. Now we’re going to pick a couple different tickers to look at, but we’re not suggesting that these tickers are what you should be in or not be in, but we’re going to use them as examples because they’re fairly popular. But then there’s also a couple that have some interesting diver, and we’ll say almost like they’re at different phases in the investing cycle, which make them different. And

And it might actually be surprising when you see the one that we’re actually starting to see is getting back on the quote unquote bullish train and might be worth a sniff depending on what happens next.

Jon Orr: For sure, for sure. You know, and I think we’re gonna be kind of unpacking some of those things to consider and things to look at if you’re gonna go down the road of I’m going to be, you know, managing my own portfolio and hiring myself. But if you’re not, you know, willing to say, or have the time to dive in and you’re happy with someone else managing it, you know, or you might look at this, you know, what we talk about here today and go, that’s just…

that’s just too much. Like I can’t take that on and I’m not willing to take that on or I don’t really have the skills yet to take that on. Then you just might be in the case where it’s like I’m going to go long term and I’m going to say ride out any downturns and I’m okay with it, right? And if we’re okay with that, then you’re okay with it. Like you’re gonna be rolling forward. So these are just say ideas to kind of consider and that’s all we really wanna bring up today is that

If you’re not okay with that, there are some ways that you can say avoid and plan for that risk. And that’s what we’re gonna kind of talk about here. Because if you also want to ride the wave and you take a downturn like we’ve gone through and you’re going, look, this is the price I pay to be in the stock market is I take downturns when they happen, but I’m going to reap the rewards 30 years from now, 20 years from now.

because I stayed in the market, because I stayed investing and I was consistent. Then go back and listen to, you know, episodes, you know, 120 and there’s a few episodes around there where we did a four part series around planning for your retirement and the math behind retirement. And the fourth, the fourth episode in that series, we talked about what do you do during downturns when you’re going through a downturn so that you are not pulling.

you know, the value or values out of those portfolios when you need to in your retirement. And so that you’re you’re really hurting your portfolio more than it needs to be and maybe limiting how much money you have access to in the future. Those episodes do a really great job of getting into the numbers of what it looks like when we go through downturns and then how to how to like navigate yourself through that downturn. But today we’re going to talk about how to avoid the downturn.

Kyle Pearce: I love it. So the first chart we’re going to pull up here for our friends on YouTube. Again, if you’re listening, you don’t have to turn it off right now. We’re going to do our best to describe things here.

All right, so the first one we’re going to take a look is the SPY, which is the S &P 500 ETF, very popular, you know, ticker. It is not the cheapest, though, by the way, for those who are DIY investors. If you’re just buy and hold and you’re just going to let a roll and you’re not going to do any risk management, then sure, take on those types of tickers. But this one is actively traded, the most actively traded S &P 500 ETF.

And out there you can see today we’re having a good start to the day. It’s about 1040 on a Tuesday morning here and we’re up almost 2 % which if I’m just looking at tickers and how it’s doing in a day that could be awfully deceiving because you go, wow, like it’s up 2%. Might get a little bit of FOMO in there. You might wanna hop in but then when we actually look at the chart you go, okay, it’s up a little bit comparative to Friday’s candle over here on the screen.

but it’s actually somewhere in the middle of that giant green candle we had about a week and a half ago where all of a sudden the SMP was up like 6 % or something like that, right? And this often happens during bear markets, right? So when we’re in a situation where this is like actually going to the downside where the SMP 500 was decreasing in value, we often see these like big.

jumps these big spikes and volatility is high during these times and it can really cause you a lot of emotional challenge but it also clouds your judgment right in terms of like what you should or should not be doing because you know since that big big candle here it’s come down however we are still higher than the bottom of that particular candle so when I look at this I go okay

I like it, but now let’s zoom out a little bit, because we’re only looking at a couple of weeks here. When I actually zoom out to the last couple of months, what you’re actually going to see is kind of like a much different story, right? If we go all the way back to where we were at all time highs, this was in February, middle of February, feels like so long ago when everybody was excited, the market was going up, everybody seemed like, you know, they’d log into their portfolios and it was like, my gosh, we’re getting richer by the day.

Well, since then we’ve come all the way back down and we are just kind of hanging out here way, way down below. And you’re going to notice these two lines. We have a red line here that’s trending upwards. That is the 200 day moving average. So you think about that. That’s like just short of a year, right? You think like three quarters ish worth of trading days. And all of a sudden we’ve got this

yellow line up here, which is the 50 day moving average. So a couple of months worth of trading and the point of these two lines and you know, you can argue all, you know, the 21 days better, the 50 days better. You can do whatever it is that you want to do because remember these are your rules that you get to set. But for us, when we look at this, you’ll notice that all of when back in February when, and it looks like it was on the 24th of February,

When the S and P 500 closed below that yellow line, which is the 50 day moving average, and it actually closed multiple days below, it actually has not closed above the 50 day moving average since you’ll notice that was right around the time where that yellow line started to flatten out up until then it was on a positive trend, which as math geeks, right? We are resident math geeks here. It was suggesting that

over on average that we were trending upwards. That’s like a bull market trend, which is great. When it starts flattening out, things become a little bit more uncertain. It means that we’ve been hanging out in and around the same spot for quite some time. And basically what you’re trying to do is figure out where are we going to move next? Now, when it started closing below the 50 day moving average and it stayed there, what that tells us as investors

is that actually that line’s gonna start curling down. Now that we’re closing below that line, we now know that that is gonna start closing and it’s gonna start forming down. And you’ll notice that that’s when things started to fall off. It’s like the wheels fell off on the S &P 500 and you had a lot more selling. You had some green days followed by red days, green day, red days. And the red days ended up lower.

than the green days. So we’re getting lower lows all the way down to where we’re hanging out now. Now the positive is, is where we are now, it looks like we’re kind of hanging out in a range, but that doesn’t mean this is the bottom, right? Like we don’t know what’s gonna happen next. And this is where some of the rules that we can set in place for ourselves can help us to try to determine, do we wanna get back in?

to the S and P 500 or do we want to stay in some of our other because remember we’re diversified, right? Like we’re not just S and P 500 investors. We have money and other assets as well. Like for example, gold, like when I pulled gold up on the street on the screen, look at this thing. Like gold’s been on a rip since the beginning of 2024 and that yellow line.

has essentially stayed positive the entire time with some very minor little dips followed by more rips all the way up and gold is just like running away with it. So we have investments in assets that look more like this and we pull the cord early on assets that look a lot like the SMP 500 right now. Now that’s because we’re trying to risk manage. We’re actually not there trying to get

the greatest gains of all time, but we’re just trying to make sure that when things start to look more bearish and when we confirm that things are bearish, that we’re going to actually take our capital out of that particular asset. And we might have to wait a little bit to see which other asset or which other diversification play we want to make in the meantime to protect our capital and also offer an opportunity to that capital at the same time.

Jon Orr: Yeah, what you’re describing is, is, you know, what, the, the real, the real meat of, you know, risk management is, is developing a rules-based system that, that you rely on, you know, and that will come with, with, with, you know, with experience. It comes with say understanding, it comes with knowledge, it comes with learning from others. and when you develop a rules-based system, what you want to do is stick to the rules, right? So you may have a rule that says I only invest.

in equities or in positions and we’re putting positions in bullish trend, you know, bullish trends. So so I’m looking at hey, I’m not going to like get into the SMP right now because it’s not a bearish trend. Like I’m not going to say invest in that. Whereas I might invest like you’re saying, Kyle, I might choose to look at gold because it’s on a bullish trend. I might develop a rule that says when, you know, if I want to say look at when I would get out of

this so that I avoid the drawdown, I might set a stop loss. So where is my stop loss? Maybe my rule is I’m gonna put my stop loss at the 50 day moving average. my equity here is gonna close below the 50 day, I’m going to then say get out. Because nothing’s saying that my rule says I can’t get back in, but my get out rule, my stop loss rule is there, which means I’m gonna avoid any sort of anything down.

below that when we get on those like bearish trends like you’re describing or showing what the SMP or the spy looks like right now it’s like you’re always going to if you follow that rule you’re always going to avoid those things now are you going to never catch a bottom problem you’re not going to catch the bottom because you’re going to be waiting for in that rules based system you’re be waiting for the bullish trend to start but remember you’re not maybe the rule that you’re trying to live here by is protect first grow second so

really, this idea is about trying to develop a rules based system that you can live with and feel comfortable with. Now, I’m to roll back because remember, before we started going into this specific example and getting into the weeds here is that sometimes that rules based system is too much, it’s just too much to manage. Because now it’s like, if I’m going to follow a rules based system, I have to look, I can’t just set and forget, I have to look at what the charts are doing, I have to look to see where these these assets are. And if I have 10 positions,

then that means I’ve got 10 to look at and 10 trends to look for and 10 stop losses to manage. And that might just be too much, which means I have to just roll back to go where what is my acceptable risk for this, but based off the amount of work that I want to put into managing this or paying someone else to manage bit, but that also means I’m going to reduce the amount of return that I get. It’s all about, you know, choices and where you where you want to say

Think about what you want to do and what your portfolio, you want your portfolio to look like, but also what your lifestyle to look like. Do you want to be the manager of your own portfolio or not? And those are just decisions that we all make. But if I’m in a rules-based system, then these are some of the rules that I’m going to want to develop so that I can stick to this vision I have for my portfolio that I’m going to, in 20 years, avoid all major drawdowns.

Kyle Pearce: All right. Yeah, exactly. And you know, something else that we like to look at as well, like specifically when we’re talking about US equities is the VIX, which is the volatility index. And you know, you’ll notice like the VIX is way up right now and it is on what they call a bullish trend. like when I look at that, that is sort of the opposite of what we want to see. We actually want to see that more on a bearish trend. We want volatility to not be growing the chance of volatility because

with volatility, typically we see volatility most often to the downside, right? Now you also see these upward rips along the way, which is why they call them bear market bounces, right? You see this big rip. Well, it’s because the volatility is very high right now. So another thing that we might choose to do when we’re watching the spy is we go, okay, things are starting to stabilize here, but.

I noticed my 50 day moving average is still trending down and it’s pretty aggressive. Like if you look at that, right, it’s, coming down on a diagonal basically, which means, all right, we haven’t had enough time here. We want to at least see this thing start to flatten out a little bit. That’s one thing that I want to see. I also want to see some lower lows or sorry, higher lows and some higher highs happening here. Right now we’re just kind of like stuck in a rut.

And right now it’s not worth it to me to put money into this thing and sort of hope it’s gonna go up because it could also go back down. Why? Because volatility is very high. So if volatility starts to cool and we start to see some stabilization here, those two things should be happening. I might then start to consider sizing in. Now,

an interesting ticker. This will be the last ticker we’re going to explore today. And it’s not a sign by the way, this is not trading advice. This is not investment advice. It’s not any of that type of advice. It’s education. But today, Bitcoin is also having a day now Bitcoin is by nature more volatile than the S &P 500 anyway. But you’ll notice Bitcoin also had a little bit of a you know, not so fun time since

the beginning of February, right? So it started closing below the 50 day and then it went all the way down. But look at what’s happened since we’ve seen that there was a bottom around $74,000 and all of a sudden it’s been closing up and around. Look at what it’s doing to that 50 day moving average. I’m gonna zoom in around it. The 50 day moving average is closing one day above it, one day below it, one day at it, one day below it, close below it again, above it.

above it, above it, above it. We’re on like a six day rip. And what I’m going to guess is these last two big candles, which are showing quite a bit of growth is that some people are using the 50 day moving average as well. There are lots of people out there who use it and they’re using that to say, you know what, this is around the time when I might consider sizing it, not pushing all in sizing in or back into Bitcoin.

There’s a lot of people that are bag holding Bitcoin and they’ve held it from the top all the way to here. For those who got rid of their Bitcoin, they’re now slowly buying into it. And you can see they’ve actually had a day, if it closes today, somewhere above $88,000, it will be closing above the 200 day moving average. And what I want you to see is the yellow and the red are both starting to slope positive. The red stayed that way, the 200 day.

The 50 day moving average is starting to slope back upwards. So this is a positive sign, but you know what? We’re not gonna buy Bitcoin today. Why? Because it’s green. It’s two massive green days in a row. We’re gonna wait to see what happens here because I’m telling you right now, I promise you, I will bet money on it that it’s not gonna close at 100,000 tonight. Okay, I promise you that. It’s at 90 now.

I, or maybe I shouldn’t make that promise because it’s actually possible with Bitcoin. But what I can tell you is it’s probably going to have some cooling opportunities, right? It’s going to come back down. You’ll notice here that it’s way, way up above the last while, and it’s likely it’s going to come and correct back down. So the question is, where is it going to correct to? Will it come back down to around the 50 day moving average and stay above it? Will it go way back below it?

that’s gonna be a sign for us to know is it now time for us to start thinking about Bitcoin again, because we haven’t been thinking about Bitcoin since the beginning of February. So these are just general ideas that we wanna share with you because there is the way to just put the money in and set it and forget it. And I promise you doing that will be better than not investing at all. However,

If we are able to optimize here just a little bit more, if you are going to take that do it yourself approach, we’re encouraging you that you do the full job and that you really dig in. And if you’re not prepared for that, that’s where sometimes money managers, that’s where they are valuable is it’s not about them getting you better returns than what you got last year in, an index fund. It’s about what happens during the downturns.

Are they able to keep you from making a huge loss in that down year? Are they able to keep you more at like closer to zero and in a positive world and in a perfect world, maybe even still positive while everyone else’s portfolios are experiencing huge, huge downturns.

Jon Orr: For sure, for sure. And I think this is, why we wanted to talk about this here today is because it’s no matter, you know, no matter what your, you know, your, where you stand on, on your investment, you know, you know, personality, you know, like whether you want to be, you know, investing yourself and putting yourself into these positions and managing and thinking about these things, or whether you don’t, or whether you want some sort of blend in between. It’s like knowing

knowing about it can help you make that right decision. And I think that’s one of the things that we try to pride here on Canadian Well Secrets is to look at the secrets, look at the inside, like, well, let’s get the info into your heads and your minds and your thinking so that you can make appropriate decisions. Because if we just say like we could, you know, part price, the price of playing on the stock market is to take the downturns. Well,

That’s one way to look at, but there is another way to look at it is if I avoid downturns and I go risk first, risk management first, growth second, which is what we do, then you’re going to be looking at it as possible, you know, that you’re going to have double the growth and a person who’s just looking at investing and say, and going through those downturns, which is, sounds great, you know, to have that potential.

but it does require say that extra commitment and that extra work. And it’s just you deciding whether it’s worth it or not, but knowing about it, knowing that, you know, this myth out there that you just have to, you have to kind of ride it out. You know, it doesn’t have to be true.

Kyle Pearce: Well, and friends, and this goes for everyone out there, whether you are an incorporated business owner or whether you’re a T4 employee, it doesn’t matter. This is very important work for you to be considering. If you’re looking for some extra optimization strategies to help you along this journey, definitely reach out to us over at CanadianWealthSecrets.com forward slash discovery.

And if you are an incorporated business owner and you are looking for some optimization strategies for your wealth building journey, you can head on over to Canadian wealth secrets.com forward slash master class. My friends, this is not investment advice. It is for entertainment purposes only, and you should not construe any such information or other material as legal tax, investment, financial or other advice.

Canadian Wealth Secrets is an informative podcast that digs into the intricacies of building a robust portfolio, maximizing dividend returns, the nuances of real estate investment, and the complexities of business finance, while offering expert advice on wealth management, navigating capital gains tax, and understanding the role of financial institutions in personal finance.

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