Oct 8, 2008 ... Dear Courneya Group Client: Negative sentiment in the media is not helping
investors deal with the difficult financial markets we have.
October 8, 2008 Dear Courneya Group Client: Negative sentiment in the media is not helping investors deal with the difficult financial markets we have experienced recently. Our strategy is to put you in a diversified portfolio that will appreciate in value over longer time periods and is tailored to your risk profile. We don’t try to time the markets and advise against moving into low yielding secure investments right now. As you can see in the graph below, we’ve experienced this kind of market in the past and things have recovered. (October 1987 S&P500)
Market Crash - Oct 1987 “Black Monday” 40.0%
30.0%
20.0%
10.0%
0.0% Sep-86
Sep-87
Sep-88
Sep-89
-10.0%
http://finance.yahoo.com/
These are the Toronto Stock Exchange’s largest daily market movements experienced in September 2008. Sept 29: -6.9%
Sept 15: -4%
Sept 9: -3.9%
Sept 19: +7%
Sept 30: +4.1%
Sept 10: +2.9%
http://finance.yahoo.com/
When the market turns around – we don’t want you to miss the positive returns going forward. Savvy investors like Warren Buffet have been nibbling at stocks recently and we believe this a positive sign. Important things to remember: • • •
Don’t forget returns for Canadian Equities have been strong since 2003 (averaged 15% per year) On a short term basis - the market can be very irrational – and overreact to bad news Corrections, like the one we are experiencing – have historically been followed by strong returns
Please feel free to contact us if you have any questions. Regards,
