Market Volatility is Back – How Canadians Can Protect Their Investments

Financial markets have entered a period of turbulence, and many Canadian investors are feeling the impact. Two major events have contributed to the recent downturn. First, DeepSeek, a Chinese artificial intelligence company, introduced a breakthrough AI model that is outperforming American technology firms. This development caused a sharp decline in U.S. tech stocks, with Nvidia losing 18 percent in a matter of days.

The second major hit came from renewed trade tensions. The United States announced new tariffs on imports from Canada, Mexico, and China, reigniting fears of a trade war. As a result, markets declined sharply. The Dow Jones dropped by 600 points, while the S&P 500 and Nasdaq fell by 1.7 and 2.1 percent. While these tariffs were deferred for one month for Canada and Mexico, they have led many investors to reassess their strategies as uncertainty increases.

Many Canadians Have Their Savings in Risky Mutual Funds

Most Canadians invest through mutual funds offered by their banks. These funds are popular because they are convenient and your bank markets them to you when you do your annual RRSPs at their office. However, they come with risks and high costs that many investors do not fully consider.

One of the biggest downsides of mutual funds is the management expense ratio (MER). In Canada, MERs are typically between 2 and 3 percent. This means that even if the fund earns a return, a significant portion is taken away in fees. Over time, these fees reduce the overall growth of an investment.

Mutual funds are also directly tied to stock market performance. When markets decline, so does the value of these funds. Investors pay management fees regardless of whether their portfolio is growing or shrinking. In times of volatility, these costs become more noticeable as losses accumulate.

After Years of Growth, Risk is Now the Biggest Concern

For more than a decade, the stock market has seen strong growth. Many investors have benefited from rising stock prices, which has also increased the value of mutual funds and exchange-traded funds. However, markets do not rise forever. With increasing volatility, risk has become the primary concern for investors.

The recent market downturn is a reminder that stock market investments are unpredictable. Many investors are now looking for alternatives that offer more stability. Instead of relying solely on stocks and mutual funds, it is important to diversify into investments that are less affected by market swings.

A More Stable Alternative – Blue Pearl MIC

For those looking for a potentially more consistent investment option, Blue Pearl Mortgage Investment Corporation (MIC) offers a way to protect wealth from stock market fluctuations. A MIC provides exposure to real estate through a diversified portfolio of mortgages. This type of investment offers more stability because it is backed by tangible assets rather than volatile stocks.

Key Benefits of Blue Pearl MIC:

• Lower Volatility – Not affected by daily stock market movements

• Consistent Returns – Income is generated from mortgage interest, providing stable cash flow

• No Hidden Fees – Unlike mutual funds, investors do not lose a portion of returns to high management fees

During uncertain times, investors often seek consistent options that can preserve capital while still offering steady returns. Blue Pearl MIC provides an opportunity to diversify away from risky stock market investments and into a more stable financial asset.

Taking Action in a Changing Market

Markets will always experience ups and downs. The past few years have been profitable for investors, but recent events show that conditions can change quickly. Canadians who want to protect their savings should consider diversifying their portfolios with investments that offer security and reliability.

Blue Pearl MIC is designed to provide stability in uncertain times. If you are looking for a way to reduce risk while maintaining steady growth, contact Blue Pearl Financial today to learn more about how this investment can help you achieve your financial goals.

Schedule a quick call with us to explore how we can help you build wealth: CLICK HERE