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Watson's top five columns L ooking back, there have been many Most investors fail at this. articles or themes I have enjoyed It is popular, although totally unfounded, writing about. Today's column will to try to beat the market. highlight my favorite five of the past year's When you attempt to pick the best stock articles written. or the best mutual fund manager, you are Two different themes were about risk: taking a higher level of risk that ultimately good risk and bad risk. hurts your investment return. Managing both types of risk is a key elePerformance data reinforces the acament to any investor's demic research showing potential success. that markets produce a One: Risk is an invesgood rate of return over tor's friend. It allows an the long run while indiinvestor the potential to vidual investors often do achieve superior returns. not. Try to resist the gamThis is essential bling instinct you might because earning enough have and do not attempt from investments can to select the best securiBy Peter Watson allow investors the ability ties or managers. to achieve long-term Three: The challenge financial objectives. is to develop an asset For example, investing allocation that allows you in equities over longer periods has pro- the greatest opportunity to achieve your duced far better returns than investing in ultimate long-term objectives. safe fixed-income guaranteed investments. This is a trade-off between what is Two: Not all risk is good. required to put you on the path to achieving Academic research consistently shows those objectives and your personal tolerthat taking equity risk has rewarded inves- ance for risk. tors over the decades. If your target return rate is eight per Some of your portfolio should likely be cent, then you need an eight per cent return invested in equities. over time to be successful. It is safer to buy the total market and be If you are risk adverse, however, and you patient. That is the theory and that is the can only tolerate a smaller degree of volatileasy part. See Be page 18 HERITAGE Lifestyle Home Furnishings 9 · Thursday, December 29, 2011 OAKVILLE BEAVER · www.insideHALTON.com SINCE 1977 SALES EVENT FINAL WEEKEND OUTSTANDING SAVINGS BOXING WEEK Dollars & Sense Incredible Specials, Buyouts, One of a kind and Factory Authorized Savings! DON'T MISS OUT. 4205 Fairview Street, Burlington · 905-634-5298 www.heritagefurniture.ca Whether you want to quit smoking, cut back on the sweets or just exercise more, regular yoga practice can help you make good on your New Year's resolution. Yoga keeps you calm and helps get you through those times when you would otherwise take a step backwards. So in your efforts to get healthier, resolve to take advantage of healthy savings now being offered by Some Like It Hot, Oakville's hottest yoga studio. Get Healthier new year's resolution # 1: l RESOLVE TO.. One Year Membership NOW $585* SA VE 55% REGULARLY: $1,300 20 CLASSES FOR $200* AND GET A FREE YOGA MAT (A $40 value) 10 CLASSES FOR $100* 131 Kerr Street (at John) 905 845-YOGA (9642) somelikeithot.ca *While supplies last. Special offers end January 31, 2012. HST charged extra. We reserve the right to limit quantities. Certain conditions apply. Not to be used in conjunction with any other offer. OAKVILLE'S HOTTEST YOGA STUDIO