Thursday, February 15, 2001

Winnipeg Free Press

Location: Winnipeg, Manitoba

Page: 75

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Text Content of Page 75 of Winnipeg Free Press on Thursday, February 15, 2001

Winnipeg Free Press (Newspaper) - February 15, 2001, Winnipeg, Manitoba Tile Jewish Post ft News Financial Guide 2001 5 Why This is a Bad Time to Invest in the Stock Market By LARRY CFP Associate VicePresldent Berkshire Investment Group VL JL m e are currently hearing the economic slowdown in the may in fact be a W W recession and that a recession in the U3 wiMinevitable move into A recession will result in lower production and higher unem the technology sector has become a figurative train wreck as evidenced by a nearly 40 drop in the Nasdaq Index in Add to this rising oil prices and increasing tension in the mideast and the logical conclusion would to stay very far from investing in stocks or stock based mutual The fact if we look back in almost every year presented us with a valid reason financial writer Nick Murray coined a term apocalypse du not to invest in The following supplied by Mutual Funds shows us the Apocalypse Du jour for almost every year going back to 1950 and where the Dow Jones Industrial Index DJIA ended that DJIA did indeed slip in some the underlying point is that the index was at 200 at the beginning of 1950 and closed at at the end of This is a compound annual return of over a 51 year War explodes hydrogen tops 300 market too has heart Canal Castro takes over Missiles Wai Pueblo market too market drop in 40 economic nterest rates rates hit all time recession begins Reagan recession 40 years debt hits record market too nears 2000 market too of War worst 1yr mkt market too rates are going market is too of Lets look at some Canadian data supplied by AIM Funds Management Since the TSE 300 Index has posted positive annual returns in 53 While past performance cannot guarantee comparable fu ture the market has registered almost twice as many up years as down investors have enjoyed doubledigit returns in 35 out of 80 and returns greater than 20 in 22 of 80 years since The market was up almost two out of three years since But what about the down years The markets 27 down years averaged a negative return but the 53 up years averaged a positive return and the market has had backtoback negative years only three times since World War that there have been 27 down years since 1920 and the fact we now have a plethora of media commentators telling us what the financial gurus are why not take this information to time the waiting for the perfect moment to enter and exit The prob of is that while youre sitting on the some of the markets best singleday performances could slip right by A poorly conceived timing strategy means you might be forced to forfeit these missing even a handful of days could seriously reduce your portfolios longterm The more you time the the greateryour chances of missing the markets biggest single day Thats why most experienced investors dont play the timing They dont let the markets shortterm fluctuations sideline them or dictate their investment They are patient investors focused on the One thing is clear its not that counts when it comes to potentially maximizing your investment The moral of this story There will always be an apocalypse du jour to tell us this is a bad time to History has shown that the positives have outweighed the So dont look at the bumps on the road keep an eye on your longterm goals and remember that the best time to invest is whenever you have the capital to do iti FUNDS Financial Advisor Fund for the Bargain Shopper i When Aims managers look for they dont to pay too in they only buy those stocks that are not yet showing their true value i the r Sponsored in part by for more inflation please contact BERKSHIRE INVESTMENT GROUP 1000 444 St Mary MB R3C 3T1 Tet 204 9421212 Fax 204 9561087 MPlanning Firm in firihejpvestment Executives Financial Planners Report June 2000 us before their values change frequently and past performance may not be financial Advisor Taxefficient Sector Fund Defer capital gains tax by switching among Global Financial Services OX Global Health Sciences Technology Telecommunications QX Global Consumer Products Global Resource CI Global allows switching among any of its without triggering capital SpdnjIiQnfd in part by I For morlpformation please contact BERKSHIRE INVESTMENT GROUP JQtfO 444 Mary MB R3C 3T1 Teis 204 9421212 Fax 204 9561087 flarimhgFirm in Executives Financial Planners Report June 2000 mutual fund Please read the