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The. Cutadien Chainf. Frlday. FObiul"r 16. 2001>j15 MutualI WNhenever there are Indlications that mhe market moy be neorlngç or experienc- lng o dowrtumz many inwestors cire offen tempfed fa, maire hosly decisions wlth regards ta t-eïr muluai funds. The temp- tauion, of course, hs fa sel off a portion 0f mhei funch. wait on the sidleines ut.rfl the markret hon boflomed out, and then go bock In when If's sole. This anxiely is espe- ckally pronounced for newer investors who have kms experlence wllh market cycles. ond how If con Impact tteir muftu- cg funds. Although market volatllly may be unnervlng fa novice ond experlenced ivestors alike. tttese klnds of corrections are nolhlng new, and are o common markcet phenornenon. Thte best approoch fa hondlng these worrlsome perkids Is ta arm yoursetf wlth proven historical lnvest- ment Information ond seer professional odvlce from on Inveslrnent Professkonol. So let's begin by foking o dloseïr lookc af whot couses markret volatlity. There are neyerai factrs moat con Impact market movement. ond subsequently, the tise and fcil in the value of the varlouis types Of mutuol tunds. Among the mosf common fact ors are cotporafe proflfc±tll- Ify. inflation ond large scade event s such as poîhical ond economic factors. Corporate proftfbluly is mhe Most obvlous. When profits go Up. mhe markiet goes up, and mont types of mutual funds tend fa benetf wlth correspondlng growth. When profits decine. mhe markcet drops and mhe repercussion ls feit on certain types of equlfy based mutual funds as well. Corporafe profits are In turn impacfed by global economic conditions whîch go mhrough natural cycles of growfh and recession. Also, equlty mufuci fund per- formance hlsforically weakens during fimes of rapldly rising Inflation. whlch drives up interest rotes fhereby maicing flned-wtcome muluai tunds more attrac- tive. Thirdity. unonticipofed pollilcol occur- rences such on mhe 1990 Kuwaif crise con have o signlficonf Impacf on world mar- kef. in fhot Instance mhe Toronto Sftock Exchange dropped rapidly from 3,000 to 2,200 points. effectively endlng eight yeors ot recovery from mhe 1981-82 reces- ion. How Draalkaiy Do.. This IMPact Muhiel Funda? AIitough fhese ups ond downs con creafe fension and uneosinets among invesf ors. when viewed from a long ferm perspective, mheir deftrnent fa mutual funds s lens ckamatic thon often teared. H-lsforically. tises have follawed shortly atter steep tals In mhe markef, ond muluol funds resumne on overol upwcid trend. *lxt l te ls.Smals. Way lo R.act Dwlng MoSie VoflaUw? One thing is cerfoin, trying f0 lime mhe marktre by gettlng in and ouf during mhese periods does nof make sense. This prac- lice is fermed ilghfening up» but is rarely successful beCause no one con predicf exactty when mhe drap will occur. Anrd Wf investors sel, mhere is dlways mhe danger moat mhey wtt mtiss ouf on ony subsequent rise in mhe rret. if invesiors hod fnied fa lime lte ups and downs of mhe markef, mhey would have risked mIssing ouf On days moat regisfered some of mte bêggesf gains. The smarfer way ta view volafie perlodS ns ta fhinlc of fhem as oppofunilies fa review your exposure f0, riskr d5scussing - f. q~çesqqry _J~i WM LQr - 1ny tpf.nf :unds and Market Volatility Professional. 0f eone If you fid yourself wortylng too much about menf professiona betare investing. Mutual funds cire Whait Slsou Doive "e Seleculon of you inveslrnenfs. nat gucionfeed; mher values change frequenty ond Muhiel Funds? This article was prepcied by Fldely Investlmts posf performance may naf be repeoted. Investors Srnorf lnvestment Prafess4onas and for Lau Mulgan of Moniey Concepts. wha Is on MHi pay managemenf and exjpenses, may pay con- Investors select theïr mufual funds baSed inveslrnent PrafessIonal. missions or trcillng commissions and moy experlence on fundamenfal finoncial Indicaors Read a fund's prospectus and consutt your invesf- a gain or ions. rather mon on short-term lnduslty or mci- ket frends. A mutual fund manager hs facused on balance sheefs. cash flovws. and ecinings ta revecil a comnpany's true pafential for long-ferm growth. Vaur tocus shautd be on mhe same indicators. Solid performance and corporafe profils drive market performance in mhe long mun. Whart thse lofIom Une on Mrel Volaly The wortd is on ever-changing place. and volaflity along wmh mhe pofelicsl for hlgher refurnisIshme nature of eqully mci- kets. investors taha maintoin a lon-term auloalc for their lnvestmenf s have on odvontoge over mhose who do not. Succesafui long-ferm investors understond moat mhe markreftS all woy experlence pemlads of declène. and moat alftxhau stock lrmeslments are consldered ritiler hlsforry hons shown moat stocks have a record of oulperformlng mare conserva- live lnvesfments over longe limfe perlods. in mhe pont. equhty lnvestments have oftered mhe hlghest relurnu, The key fa sur- viving market valality hs o long-ferm approach. diversificatilon and o comfort level wfth your exposure ta rislr. Tatk f0 your lnvestmenf Professional to set your mind Bob "Pie" Lee Professional Liability Insured NMONEY- I1CONCEPTS LAM- - ~ A LEARN ABOUT a $5000 RRSP at an after tax cost of $ 1000 Federal tax coedlits, pittvanial tax credits, nisks, rewards, tax breaks. What are labour sponsoredfunds 2 Should you have them an your RRSP? Whach one as raght for u? mm @RW1111 inuo - M I - U.hdmg MI111"111111YM - CNMl MM NU Cail 876-0940. for details or to reserve. Attilliated wlt Money Concepts Group Capital Corp. andi National Financlal Insurance Agency Inc. Re.u.S.P DERDLINE The R.R.S.PU Advantages offered by Bob Lee & Kim Mitchell A Retiremrent Financial Specialist office with 26 years of experience and the coffee's neyer been better! " Security of investments up to (100% fund guarantees) " Competitive segregated and mutual funds. " Competitive G.I.C. interest rates. " Personalized ongoing consultations. " R.RP boans available at prime, witb deferred payments. * Appointments available Saturdays beginning in February. Kim Mitchell CONTACT Bob "Pie" Lee & Kim Mitchell robertlee@aztec-net.com kIm2@castle.on.ca Robert "Pie" Lee Insurance Agency Tel: 9oS 878-5786 Fax: 905 878-3692 CALL FOR NO OBLIGATION CONFIDENTIAL CONSULTATION 245 COMMERCIAL ST. Years of Fi.l,(,Il(lly 110111etoit-il serrice 1 >ý -