www.insideHALTON.com | OAKVILLE BEAVER | Thursday, January 28, 2016 | 20 Stock markets can provide good and bad annual returns continued from p.16 As it turns out, despite the battle scars from periods of decline, investing in the American stock market has been profitable. Investing in the S&P 500 from 1927 to 2015 provided a return of approximately eight per cent over the return of investing in one month T-bills. T-bills are the starting point for examining returns. They are the safest investment with the least risk, paying small returns. Incrementally, investors are rewarded for taking additional risk above that of a T-bill. The technical term for this is "equity risk premium." Investors are forced into a financial balancing act, determining their desired target return on investment and the amount of risk they can afford to take both financially and emotionally. If you are an investor who would like the long-term returns of the stock market, but would prefer not to have losing years, then be careful what you wish for. It is the risk of losing that provides the opportunity for superior returns. If the risk of investing in the stock market was as low as the risk of investing in T-bills, then we could expect returns similar to that of T-bills. Fortunately, or unfortunately, that is the way investing works. The challenge for each and every investor is to understand the characteristics of stock markets and realize stock markets can be expected to provide both good and bad annual returns. Investing can be an emotional roller coaster. Our recommendation is to consider your long-term investment objectives and your financial and emotional ability to assume investment risk. -- Submitted by Peter Watson, MBA, CFP , R.F .P ., CIM, FCSI., Certified Financial Planner For more news, visit insidehalton.com/oakville-on. `Like' the Oakville Beaver on Facebook. AUTOGRAPHS LIVE MUSIC FREE HOT CHOCOLATE FAMILY FUN KeeP your Family 2015 Platinum Award thank you for voting us 2015 Platinum best Heating & air conditioning company 10 YEAR PARTS & LABOUR WARRANTY* Replace YouR FuRnace & aiR conditioneR $ in rebates & Discounts Are You ou Ready? In 2016! UP TO 2,350 backed by coleman's 100% satisfaction Guarantee* We SeRvIce All MAKeS OF cenTRAl AIR cOndITIOneRS And GAS FURnAceS FOUNDED IN 1857 *Limited Time offer. O.A.C. See store for details. APPLEBY 24 HR EMERGENCY OAKVILLE905.825.1893 FIREPLACE, HEATING & AIR CONDITIONING CONTRACTORS BURLINGTON905.335.3203 HAMILTON 905.540.9153 SYSTEMS SERVICE 2086 SpeeRS Rd., oakville Come See Our SHOWROOM Mon - Fri. 8am 5pm; Saturday 11am 4pm www.applebysystems.ca