What’s the outlook for my volatile funds?

Question: I have Index funds I have invested in with CIBC. One of these is Nasdaq Index RRSP and the other is Global Technology. Would you tell me how these funds are doing – will they recover from their recent short term drop?

Answer:

There is no way that I or anyone can predict how volatile funds like these will perform in the short term. What you have to ask yourself is whether you believe investments of this type will do well over the next three to five years. If the answer is yes, then stop worrying. If it is no, then sell. Personally, I think technology is here to stay and the funds that invest in that sector will do well long term – but they’ll have their ups and downs.