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risk than you realize. In fact, those bonds could be dangerous this year. The perception of bonds is that they are a safe investment. Many bond holders purchase them and then just leave them sitting in their portfolio. If you own bonds, you might have more Holding some bonds? It‘s time to sell The logic is that if you own a bond you keep them in order to collect the interest. Eventually, the bond will mature and you will receive the principal. To fully understand your risk, we have to look beneath the surface to see how bonds work. What makes them attractive investments and what are the risks that would hurt your investment. The first risk that we will consider is the fact that the organization that issued the bond will not be financially able to pay you the principal at maturity. In most cases, this is not an issue because the type of bonds that most people purchase are from large The Oakville based pharr;lageutical firm of SmithKline Beecham Pharma is contributing $300,000 for new stroke research. x SmithKline supporting stroke research Dr. Harold Robertson, professor of pharmacology and assistant professor of neurology, and Dr. William Currie, associate professor of anatomy and neurobiology of the Dalhousie University will conduct leadingâ€"edge research on the third leading cause of death and disability in Canada. SmithKline Beecham Pharma Inc.‘s commitment will be matched with $200,000 funding from the Medical Research Council of Canada as part of the University Industry Grant Program established in 1992. The program encourages universities and industries across Canada to form partnerships in support of biomedical research. "This investment is a direct result of the excellent science involved, the devastating impact of stroke on the health of Canadians and SmithKline Beecham‘s commitment to innovative research," said Dr. Roger White, Medical Director. The company is ahead of the Pharmaceutical Manufacturers Association of Canada‘s commitment to spend 10% of sales on research by 1996. $399,0000. Come out and be charmed. Spectacular ravine setting makes this 3,000 sq.ft. exec. home a real winner. 6 appls. + pool. BARBARA ROGERS* $45â€"4267, 849â€"6613 326 LAKESHORE RD. E., OAKMLLE $329,000 Oneofflwefinstmstombmlthomesononeoanlwfllesmost courts. Careful attention to the smallest detail combi with finishing to create a very special home. Professnonally landscaped, backing onto a wooded ravine. A Must see! 1537 CANADA COURT Sunday 2:00 p.m. â€" 4:00 p.m. Ds1 ROYAL LePAGE ED) stable companies and often the federal government. Therefore, it is understandable that an investor would feel secure. But that false sense of security is part of the problem. The more immediate risk of a bond is the prevailing interest rates. To illustrate this, we will consider an example. Assume that you bought a Government of Canada bond a few years ago. Interest rates were higher then and your bond paid an interest rate of 12%. But, interest rates have fallen over the last several years and much to your delight, OPEN HOUSE Sunday 1â€"4 %rrp. 1617 Venetia Drive Coronation park community, detached, Sutton Group, Diamond executive dwelling, THE KiDNEY FOUNDATION OF CANADA Vic BreRwea, (905) 494â€"5955 "Try the best and forget the rest" >‘ \./ ; \fA3 . ; $3.00 OFF any Lcrgé or Jumbo plzzd 3 items or more $2.00 OFF any Medium pizza or 4 Items or more $1.00 OFF any Smaill pizza 5 Items or more GEGESPIZZA 134A Speers Rd. @-\_\ West Of Kerr e Nee x Oakville the bond has increased in value. The reason for this is simple. Your bond has a higher interest rate than new bonds that are now being issued and, therefore, the market will pay a premium for your bond. Rule number one is to buy bonds during periods of declining interest rates. You will collect a regular interest payment and then as interest rates fall, the bond will increase in value. Holders of Canadian bond mutual funds have earned between 15% and 20% during the last three years. Not bad considering the risk was fairly low. Rule number two is don‘t continue to hold bonds during periods of increasing interest rates. Whatever the value of your bonds are now, they will decline in value if interest rates go up. Nobody knows what interest rates will do in the future, but several factors should be considered. Interest rates are now lower than they have been in close to 30 years. Eventually interest rates will rise. There are two possibilities that could occur that might cause interest rates to rise quickly. If Quebec moves closer to separation and if the world gets nervous about our increasing level of debt. Regardless of the cause of an interest rate increase, the result will be the same â€" your bonds will decline in value. It is not a matter of if; it is a matter of when. So, if you are still looking to make a New Year‘s Resolution, I have a suggestion. Sell your bonds. _ _ Watson, MBA, CFP, RFP, is the president of Peter Watson Investments Limited â€" an Oakville firm specializing in retirement planning, RRSPs, and investment planning. He may be reached at 842â€" ar reguial PpIICo 844â€"4711 ffer valid to Oakville Beaver "Shop Locally" card holders. FRIDAY, JANUARY 28, 1994 Page 20 at regular price #* Engineer honored seminar The American Chemical Society recently announced that Dr. Michael L. Hair of Oakville has been selected as 1994 recipient of the Ralph K. HNer Award in the Chemistry of Colloidal Materials. Dr. Hair is a Research Fellow at Xerox Research Centre of Canada in Mississauga and was one of the original team that established the Centre. Prior to his present assignment, Dr. Hair was manager of the Physical Chemistry Area in the Xerox Webster Research Centre near Rochester, N.Y. Earlier, he held a postdoctoral fellowship at the National Research Council in Ottawa. He is currently an Adjunct Professor in the Department of Mechanical Engineering at the University of Toronto. The Iler Award is sponsored by E.L. du Pont de Nemours and Company and was established to encourage and stimulate significant work in the Chemistry of Colloidal Materials. Royal Trust is hosting a free 1994 RRSP Strategies Seminar on Tues. Feb. 1st. The meeting will be held at 7:30 p.m. in the Oakville Holiday Inn. For reservations, call Joy Irwin at the Lakeshore Road Royal Trust office, 844â€" 0771. 1030 LINBROOK ROAD Priced $529,000 SUNDAY 2â€"4 p.m. 251 NORTH SERVICE RD. W. .OAKVILLE Looking for Special Pullâ€"Out section every Wednesday. Produced on behalf of the Oakville, Milton District Real Board Sheet