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www.insideHALTON.com | OAKVILLE BEAVER | Thursday, July 16, 2015 | 30 Investing is not guessing continued from p.24 Buffett said: "We've long felt that the only value of stock forecasters is to make fortune tellers look good. Even now... I continue to believe that short-term market forecasts are poison and should be kept locked in a safe place, away from children and also from grown-ups who behave in the market like children." Our recommendation is not to attempt to outsmart the market. We recommend your investments be broadly diversified, low-cost and tax-effective. Your goal is to capture as much of the market returns as possible. That brings us to our next prediction. Will you be able to predict your market returns in the market from a broadly-held, well-diversified portfolio year-to-year? The answer is a definite no. The stock market in the U.S., as measured by the Standard and Poor's 500 index, has produced long-term returns ranging from eight to 10 per cent annually. That is in no way an indication that you should expect similar returns every year. The stock market is volatile. Starting in 1926, there were 28 years when returns in the S&P 500 were gains or losses in excess of 25 per cent. Over time, investing in the stock market has been very profitable and predictable, but we stress the "over time." The short-term returns have been extremely volatile and there is no reason not to expect that volatility to continue. Any time you have a market that is extremely volatile, it is almost too tempting to resist predicting future market swings in order to capture significant financial gains. There is a little bit of "greed" in us all. Imagine if you could time the market and miss a decline of 28 per cent one year and then capture an increase in value of 28 per cent the next. Your investment portfolio would grow exponentially. That curiosity to fuel our natural greed is what most of the investment media coverage is all about. People take great delight in making bold predictions and from the perspective of the entertaining world of investment journalism that is something the readers will pay for. Our recommendation is to remind you that what you read, hear on the radio or watch on television is nothing more than investment entertainment and should be correctly categorized under the heading of fiction. Investing is serious business and achieving many of your life goals is based on successful investing in order to fund those goals. Predictions are guessing. Investing is not guessing. -- Submitted by Peter Watson, MBA, CFP , R.F .P ., CIM, FCSI., Certified Financial Planner until September 7th Socialize off-line and on-patio Celebrate summer and friendships with our shareables & pitchers all summer long. Some things you retire from. Others you retire to. Discover Amica Mature Lifestyles' newest retirement residence, scheduled to open this summer in the heart of Bronte Village. Amica at Oakville will offer a care-free, all-inclusive lifestyle featuring first class accommodations, amenities and services. We invite you to find out more and reserve your suite soon. CALL TODAY! Limited number of suites remaining! Book an appointment at our Presentation Centre at 118 Bronte Road to reserve your suite! All-Inclusive Retirement Living · www.amica.ca riChmOnD hill | 125 YOrK bOuleVArD Please enjoy responsibly. 19+ Amica at Oakville 160 Bronte Road, Oakville, ON 905.842.8167