No trust in the markets? Understanding where the fear comes from… and how to overcome it.
Many people say they don’t want to invest in the stock market because they believe that “the markets are manipulated,” that they’re “controlled by the big players,” or that “you can’t win against Wall Street.” These perceptions, while understandable, often stem from negative experiences, media narratives, or a legitimate mistrust of the financial system.
But does that mean you should completely avoid the markets?
Not at all.
What’s needed is to separate emotional noise from actual facts, understand how markets work, and learn to invest intelligently despite uncertainty.
1. The markets are imperfect… but not systematically against you
It’s true that financial markets are not perfect. Episodes like the tech bubble of the 2000s, the 2008 financial crisis, or the manipulation of certain speculative stocks have helped erode public trust.
But these events, while real, are the exception — not the rule. They mainly affect those who speculate in the short term without a strategy, or who invest in individual securities that are too risky.
Conversely, disciplined investors who hold diversified portfolios and invest for the long term have historically enjoyed strong returns, even through turbulent periods.
2. The markets are regulated, monitored, and transparent
Contrary to what some may believe, financial markets are far from being a lawless jungle. In Canada, the markets are overseen by several regulatory bodies, including:
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the Autorité des marchés financiers (AMF) in Quebec;
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the Ontario Securities Commission (OSC);
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the Canadian Securities Administrators (CSA).
These entities regulate brokers, firms, and products, and ensure that information is disclosed fairly. Manipulations are tracked, and severe penalties are imposed in cases of fraud.
This doesn’t mean that abuse never occurs — but it does mean that rules exist to protect investors, especially those who invest prudently and for the long term.
Many people choose to keep their money in cash or in guaranteed products with very low returns, out of mistrust. But this leads to a significant loss of purchasing power because of inflation.
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With inflation at 3%, $100,000 left uninvested will be worth about $74,000 in purchasing power after 10 years.
In other words, fear costs more than well-managed risk.
Not trusting the markets often comes from a confusion between investing and speculating.
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Speculating means buying a stock on a whim or following trends (crypto, penny stocks, online forums).
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Investing means building a diversified portfolio made up of stocks, bonds, ETFs, and cash — according to your risk profile, goals, and time horizon.
You don’t need to trust Wall Street.
What you really need is to trust a rational method — one that’s tailored to your reality.
What fuels mistrust is often a lack of information, a negative experience, or the absence of a plan. A good advisor won’t say, “trust me, everything will be fine.” They’ll say:
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Here’s how the markets really work.
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Here’s what you can control (your fees, your behavior, your strategy).
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Here’s a concrete, realistic plan tailored to your comfort level.
And you stay in control every step of the way.
Yes, some aspects of the markets are imperfect. Yes, fear is understandable.
But inaction or complete mistrust often cost you more than the markets themselves.
The key isn’t to take a leap of faith. It’s to build a solid, diversified strategy based on your goals and your values — not on rumors.
And if you don’t trust the markets… start by trusting a good process.
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Morningstar, Historical Market Returns, 2023
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Autorité des marchés financiers (AMF), Market Oversight, 2022
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Vanguard, Advisor’s Alpha, 2020
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Statistics Canada, Inflation and Purchasing Power, 2023
