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www.insideHALTON.com | OAKVILLE BEAVER | Thursday, January 1, 2015 | 34 A ttempting to mix your long-term nancial plan with your guess about where the stock market is headed over the short-term is a bad idea; but not all advisers agree. In the world of investment advisers, there are two camps. An overwhelming majority believes there are ways to predict how the stock market will perform. Part of that adviser's "value added" to clients is to share this information with them in the combined effort to earn a good return on investment. The other smaller segment of advisers do not believe there are available indicators that can be used repeatedly to correctly predict the stock Try to resist temptation to guess stock market performance market performance during the short-term. Both opposing and separate camps of advisers come with graphs and charts in hand to support their case. They all make a convincing argument. From the client's perspective, it's as clear as mud. Could you ever imagine having a detailed conversation with your medical doctor about an illness where the doctor pulled out proof plus research reports to support their professional opinion? Patients nor investors have the training to understand the implications of these facts and gures. A part of the challenge is the client. Most, if not virtually all, clients think there must be a way to predict future market behaviour. For those who do not believe market predictions can be made, the conversation can revolve around why that is true. After politely listening to the reasons why predicting is not logical, the same question is repeated. People want to hear a prediction. That has been my own experience. People want your opinion on what will happen next; particularly during times of market volatility, This is similar to the ongoing chatter on sports radio. Will the Leafs win their next game? Lots of opinions, lots of noise. In the end, it is just a guess. Same as in the investment world, it is just a guess. Sports, however, is entertainment and investment decisions affect your life. In our past articles for the Oakville Beaver, we have clearly stated we are in the minority and do not believe that short-term market performance can be successfully predicted. That brings us back to the beginning of this column. Do not try to combine your long-term nancial plan with market predictions. Author and American certi ed nancial planner Carl Richards wrote an article in The New York Times July 1, 2013. His advice was simple. Dollars & Sense Guest Contributor Peter Watson Happy from Holidays your totAl cAr oakville cAre centre to Lifetime 905-844-2026 warranty on #1 muffler brake pads and voted shop in oakville shoes $ * Plustax.Peraxle.Mostvehicles. ck S 59 "Instead of relying on guesses to dictate our nancial decisions, we need to focus on the investing basics. "Figure out where you are today, make a guess about where you want to go, buy diversi ed, low-cost investments that have the best shot at getting you there and behave for a long time." His nal comment, "behave for a long time," acknowledges that human behaviour when investing can often be harmful to achieving good investing results. Humans believe they can "win" at investing and that is why they always ask for predictions from investment advisers. By all means have a formal long-term nancial plan. Please resist the temptation to guess what the market will do over the coming months and invest wisely for the long-term. -- Submitted by Peter Watson, MBA, CFP , R.F .P ., CIM, FCSI., Certi ed Financial Planner In tire StorAge AvAilAble Save $10 on services over $100* Save $20 on services over $200* Save $30 on services over $300* *valid with this flyer only greAt SAvingS 230 Speers Rd., Oakville ON 905-844-2026 midas_oakville@bell.net AppointmentS or WAlkS-in are Welcome! Free Shuttle within the Oakville Area ElEgant ElEgant inspiring inspiring bEautiful bEautiful you, you, at at Zuri Zuri fasHions. fasHions. Located Between cIBc & td BanK wIde seLectIon of JeweLLery BoX mIrror vanItIes to choose from many sofa set styLes to choose from 103 Reynolds stReet · Oakville, Ontario L6J 3K4 Corner of Lakeshore Rd E & Reynolds | t. 905.849.1316 www.zurifashions.ca · e-store: www.shopify.ca Follow us @Zurifashions · like our Facebook Page Gerry Weber, Simon Chang, Barbara Lebek, Spanner, Foxcroft, Linea Domani, Fred Sabatier, Mes Soeurs Et Moi, Eva Tralala, Samoon, Luna Luz, 2 Beading Hearts taBLe wIth cd stand dInIng sets 20 saLe % off FIREPLACE & ENTERTAINMENT UNIT In stocK merchandIse onLy *some restrictions may apply chaIrs varIety of groUP of seven framed PrInts Two LoCaTions Burlington Mall 905-635-8779 South oakville Centre 905-847-2975 From concept to completion... Classique -Decor.com (formerly hopedale mall) www.prov-stateconstruction.ca · 905.257.4211 Together we create beautiful spaces!