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Halton Hills This Week, Wednesday, September 29, 1993 — Page 9 By George Perdue, B.Sc., P-Eng. Last Thursday night’s seminar at the Knowlcrest Conference Centre proved to be most informative. Steve Kelman, Vice- President of Dynamic Fund Nanagement, soe on the economy and how profes- sional money eel nay- igate through these uncer- tain times to produce superi- or return on investor’s money. Mr Kelman told an audi- ence of more than 40 people that “being in the right assets at the right time yields maximum returns. With low interest rates, most people cannot meet pee financial objectives ith GICs or money market ingeneneates So, what are the alternatives?” Canadian equities, foreign equities, government bonds and government treasury bills were the asset classes mentioned as primary ingre- dients for a portfolio. The pending Canadian election causes uncertainty which is magnified by the specter of a minority gov- balance of power_potentially in the hands of the Bloc Quebecois or the Reform Party. Since investors do not like uncer- tainty, the Canadian dollar is affected and the short, term interest rates are sent up. Mr. Kelman expects that things will return to normal after. the election, but the time required for this set- tling effect may lengthen depending on the election outcome. He also expects interest rates to bottom shortly and begin to rise modestly in 1994. For this reason, he explained, he does not favor Canadian Bonds. Rather, he favors. foreign bonds or equity as the preferred investment. The concept of asset allo- cation between treasury bills, bonds and equities was discussed on the basis of the ferred investment princi- ple. He explained that the preferred investment coming from the interest driven part of the recovery from recession into the earn- ings driven portion. This explains the current popu- sae! of equities. It contrasts popularity of bonds from 190 through 1992 and the popularity of treasury oe or GICs Kelman believes that xi and that Canadian equities will out-perform American equities. Europe, he believes, is where Canada was two years. ago. He expécts equi- ties to make impressive Steve Kelman presents — a view on the economy gains there in the coming months. In the short term in Europe, he feels there is still room for an interest decrease and that is why foreign bonds are in favor at this time. The Canadian dollar is predicted to continue to be weak. This means that com- panies with export markets will prosper. Other strong sectors. include gas and oil and forestry since demand is straining the supply. the discussion came around to gold, Mr. Kelman told the story of how his book “Investing in Gold” came to be written. “Gold has not performed for years. When we were doing analysis two years ago, we began to see poten- tial shortfalls in demand. The Chinese were beginning to earn more than they spent, but the capital mar- kets were not developed so gold became the choice for parking excess income with acurrency ris} Mines have been closing, general consumption has been incteasing, and most countries have already dumped excess stocks of gold on the market as a way to decrease deficits. So gold should increase in value.” Mr. Kelman finished by saying “when this book on BEELINE TRAVEL| 112 Main St. S. Georgetown! (416) 873-2900) or (416) 874-3063 presents... SYDNEY, AUSTRALIA Sydney is a young city — 200+ years but it does not lack history. You can visit the State Parliament and State or wander through the Rocks just west of Circular Quay and rediscover a European settlement in Australia’s first city. This is a city that lives for the water. The harbour splits the city, gifting it with world- class beaches. From Cals Quay you can enjoy one of Captain Cooks sightseeing arbour cruises. At Bennelong Point stands the Sydney Opera House, which is simply awe-inspir- ing. Close by is the Royal Botanic Gardens - 74 spec- tacular harbourside acres. Explorers seeking a change of scenery have a wealth of day trip options just a short drive from Sydney; the Blue Mounteiite Terrigal, Wollongong and the Hunter alley, whose semillon and shiraz grapes yield excellent dry white and red wines, among Austrade ”s best. gold becomes a best seller, sell your positions in gold”. He recalled the last run up in gold prices when gold sold for more than $800 an ounce and large lineups at gold traders filled the street. “When gold ran out, the people bought silver just because they were buying in a herd.” By this time, it was! jf too late to profit and the prices fell. “The same thing just occurred in real estate in Toronto.” Mr. Kelman proceeded to answer individual questions before the seminar broke up. Beige Revi welcomed ae perio cere sia Kelmai a elman is (et and Peter capeta: both are Money semmye edeey, Allstate LIFE, AUTO, HOME, RRSP DAVID R. WALSH 232A Guelph St., Suite 204 Georgetown GET YOUR MESSAGE OUT TO THE PUBLIC TODAY - WITH OUR NO HASSLE FLYER SERVICE ‘For $475.00 + GST You Get 10,000 copies with any colour ink on white 8 1/2" x 11" Stock. Includes art work, comp & all 10,000 copies will be inserted into Wednesday or Saturday edition of HHTW. Call and place your order today. Call Halton Hills This Week 873-2254 We offer competitive prices for flyers and distribution and can save you time and money. Toll Free 1-800-387-9974 in (centre) to Georgetown flanked by ete Perdue photo " =r