nw 1 M L U A N v l L^LC j D L a » i_i\. B u s in e s s To reach this section call 845-3824 Fax:337-5567 Volatility in markets can change view of long-term goals The first person who can invent a cure for anxiety caused by stock market volatility will go down in history as a hero. While I have written about volatility in this column last month, the recent dramatic ups and downs in the markets over the summer prompts me to review the effect volatility can have on your long-range plans. Many people have earned post graduate degrees studying stock mar ket investments. Unfortunately, none of these experts can tell you what will W A T S O N happen in the short-term. Long-term predictions are a whole different matter. The long-term data on market based investments is remark ably predictable. Let's start with a brief look at histo ryDuring the last 30 years, Canadian investments, as measured by the TSE Composite Index, would have grown Dollars over seven-fold. If you started with $100,000, you would now have over & Sense $700,000. On the surface that sounds good and if history repeats itself, investors will be fine. My prediction is that history will likely repeat itself, but I am not so sure that all investors will be fine. Looking at the last three decades, we can see that although the growth was good, it did come with a fare amount of volatil ity. The market fell by 10% or more nine times. On five differ ent occasions, it fell 25%. For all those individuals that got nervous and sold after a routine correction, they will not have done so well. Remember the summer of 1998 when the market fell over 20%? For all those that had the patience, their next year's return was 28%. Patience is the key word. If you invest for long-term results, it can be suicidal to over-react based on short-term corrections. Let's consider your own financial future. Look ahead for the next three decades. Whether you are working towards retirement or already there, you presumably want to protect your capital and, of course, you want that capital to grow. If you have high quality market-based investments, they will grow as long as you resist the urge to react to short-term market fluctuations. Don't get caught up in the inevitable corrections. Just accept the fact that they occur and if you stay the course, your invest ments should grow. PETER LOOKING GOOD: The cosmetics department at Sears in Oakville Place, was a busy place on Saturday. About 260 flight attendants and families from Air Canada and Canadian Airlines attended a special Summer's Night Gala. Guests were entertained to music, refreshments and beauty services. At left is Kara Fox, Canadian Airlines agent and Co-ordinator of the event With her is Lancome representative Eddie Hambor, and event co-ordinator from Sears.That's Mamie Turnbull from Canadian Airlines (above) being pampered at Sears in Oakville Place. Because of the upcoming merger between the two airlines they decided to get the women from both companies together to get to know each other. P eter W ats o n , M B A , CFP, R F P is th e p re s id e n t o f P eter W atson In v es tm en ts -- an O ak v ille firm s p ecializin g in retire m en t plan nin g , R R S P s, a n d in v es tm en t p la n n in g . H e ca n b e re a c h e d a t 8 4 2- 2100. at the QE l» n PROPtRTY C e n tru m 16-P ag e D ig e s t P rogram in today's G o ld P ass $ E Children under FREE*, 0 1 5 J a z z lin o 9 0 5 - 81f> * 2 0 2 2 w w w o a kvillo jC izzfe st c o m mQutvtutB eavkk F M W j/ ***> » C O LSO N ® u J,, ' C H tb -w OAKVILLE Vehicle Attainm ent SALE whu August 24th, 25th, 26th T h e r e 's n e v e r b e e n a n e a s i e r w a y t o o w n a c a r !! A L B E R T 'S CARPET C a n a d a '* I w h ere q u a lity is n o t e x p e n s iv e ., .it's p r ic e le s s · Carpets · · Vinyl & Hardwood Flooring · ? ^ · Custom Rugs · · Installation · DENISE S. E RTS IN IAN 131 KERR STREET OAKVILLE, ONTARIO L6K 3A6 TEL: (905) 844-2355 FAX: (905) 844-2358 THE LARGEST TAXI COMPANY IN OAKVILLE VISA OAKVILLE UNITED TAXI LTD. OAKVILLE DODGE CHRYSLER JEEP 646 4th Line, Speers Road, Oakville www.oakvilledodge.com 8 4 5 -4 2 1 1 .L ? l_ _ (