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Affiliated with National Financial Insurance Agency Inc. |
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What's New |
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Our Best GIC Rate as of August 13, 2008
is
4.50%
Over 18 different issuing companies to
choose from
CDIC insured up to $100,000 each
(rates subject to change without notice) |
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Visit
our website to find handy
Financial
Calculators
click
here!
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 Your
Money
Matters
August
2008 Issue
Market News
Most
of us have seen negative returns in our portfolios over the past
year. If that isn’t bad enough, business news on television,
newspapers and the radio paint a pretty gloomy picture. But how much
of it do we truly understand and how is it affecting us as
individual investors just trying to put a few dollars away for
retirement and our kids’ education?
Let’s
put some of this in perspective. Most of us are investing in mutual
funds of well-known, established companies. Fund managers’ jobs are
to analyze different companies’ balance sheets and prospects for the
future. Although a company may experience a slowdown in earnings for
a given period, good, well-financed and well-managed businesses will
regularly be engaged in activities that increase the overall
long-term value of the firm. These activities may include research &
development, undertaking small acquisitions, launching new products,
expanding in other geographical areas, or implementing cost-cutting
initiative – all of which will help increase the overall value of
the firm, which the market will appreciate and pay for in time. Fund
managers are looking to add such companies to the mutual fund mix.
They may sell some companies which they believe are not, and may not
be profitable in the future.
For
example, you hear on the news that oil prices have gone down by
$15/barrel in the last 2 weeks. This is good news for you as far as
the price of gas at the pumps, but not as good for those of you
invested in oil stocks. Will it go back up, will it continue to go
down? Should you be worried about your investments? Well, unless you
have 100% stocks in oil companies making up your investment
portfolio, the answer is no. Mutual funds consist of a multitude of
companies in different sectors. Sometimes several sectors will go
down at the same time. Often the downturn is caused by investors
panicking at bad news and selling without understanding the whole
picture. This is not to say that some action is not required from
time to time to readjust our portfolios. It simply means that
decisions to make changes need to be reasonable and informed ones.
Over
the course of a decade, there will be 2 or three years where you’ll
want out, another 2 where you’ll be thrilled, and the remaining
years, you won’t give it a second thought until your advisor calls
you for an annual review.
If you’re concerned about your investments, or would like more
information , please give us a call. Find out what kind of companies
you’re invested in and review your goals, time-frame and expected
returns. Chances are you’re on track to reaching your goals and no
changes are required. But you will gain knowledge, understanding and
piece of mind.
Mutual
funds are not guaranteed; their values change frequently and past
performance may not be repeated. Commissions, trailing commissions,
management fees and expenses all may be associated with mutual fund
investments. Please read the prospectus before investing.
Theresa Wever and the Money
Concepts Team.
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Russell Location |
Vankleek Hill
Location |
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1087 Concession Street, P.O. Box
269
Russell ON K4R 1E1
Tel: (613) 445-8624 |
116 Main Street
East, P.O. Box 459
Vankleek Hill, ON K0B 1R0
Tel: (613) 678-3861 |
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Toll-Free:
1-800-250-5557 -
www.moneyconceptsrv.com |
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