I nvesting can be extremely complicated, or really quite simple. I'll start with the complexities. The world stock markets make up a gigantic trading machine. During 2016, an average of 82 million trades occurred every day, with a daily trading volume of $346 billion (U.S.). Navigating such a high volume of trading, trying to outsmart the market with creative buylow-sell-high strategies, seems a little far-fetched. No matter how complex the strategy. But many mutual fund managers pride themselves on their attempt to outperform the underlying market they invest. Looking at the trading numbers, it's hard to imagine anyone could have such a competitive advantage. We have some interesting data from the U.S. showing mutual fund results for the 15 years ending in 2016. In 2002, there were slightly over 2,500 mutual funds. During the next 15 years, over half of those funds disappeared. The mutual fund database from the University of Chicago shows a high correlation between under-performing funds and funds that are withdrawn from the market. Mutual funds with a bad track record are hard to sell, so they are usually eliminated. At the end of 15 years, only 17 per cent of the 2002 mutual funds managed to have returns higher than the underlying market. Fixed income funds were similar. After 15 years, only 18 per cent of xed incomes beat the underlying market they invested. So, should investors only buy the top performing mutual funds? As it turns out, past performance has little to do with future results. During this 15-year period, if you purchased one of the top 25 per cent performing equity funds during the previous ve years, only 23 per cent of those top funds remained in the top quartile the following year. The data for xed income funds was only slightly better. Purchasing a top quartile xed income fund over the past ve years only resulted in 27 per cent of those funds remaining in the top quartile the following year. In simpler terms: when investing, decide what your objectives are and then have an extremely diversi ed portfolio with the types of investments you want to own. The two main investment options are owning stocks or bonds. Which ones you own makes a difference. If you invested one dollar in U.S. gov- Let's start talking investments Dollars & Sense Peter Watson Guest Contributor ernment bonds in 1926, that dollar would have grown to $134 by the end of 2016. An investment of one dollar over the same time in U.S. large stocks would be worth just over $6,000. A similar investment in U.S. small company stocks would be worth over $20,000. Bonds are less volatile and therefore are considered safer. Safety in the short-term comes at a price of not achieving a stronger long-term return. Stocks are the opposite. They are risky in the short-term as measured by volatility, however they are better long-term investments if you are looking for a higher return. The portfolio that is right for you should be based on your tolerance for nancial risk and your investing temperament -- how well you handle the ups and downs. Those two elements should be considered when deciding whether you are a long-term or short-term investor. For decades, trying to gure out the daily workings of the stock market has been elusive for many. My recommendation is to stop trying to outsmart the market by speculating on what investments to buy and when. Focus on what you can control. Over complicating investing can lead to confusion and possible bad decisions. The clarity of a more simpli ed approach may inspire more comfortable decision making. Build an investment portfolio that makes the most sense for you, your nancial circumstances, and your time frame. -- submitted by Peter Watson. Peter Watson is an agent of, and securities products are provided by, Aligned Capital Partners Inc. (ACPI). ACPI is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). The opinions expressed are those of the author and not necessarily those of ACPI. Peter Watson provides wealth management services through Peter Watson Investments. 31 | Thursday November 30, 2017 | OAKVILLE BEAVER | www.insidehalton.com *Cut out this ad and save 10% on your food bill *SAVE VE NOW 10% Advertorial (430-1100 CALS) This coupon coupon is is only onlyvalid validat at1011 1011Uppermiddle UppermiddleRd RdEE & 217 Cross Ave Oakville ON. This coupon entitles you to 10% This & 217 Cross Ave inin Oakville ON. This coupon entitles you to 10% off off your food food bill bill before beforetax. tax.Only Onlyone onecoupon couponper pertable. table.Taxes Taxes extra. No cash value. Expires FEB 1, 2017. DINE IN ONLY your extra. No cash value. Expires onon Sun., Dec. 31, 2017. DINE IN ONLY VAILD AT 1011 Uppermiddle Rd East & 217 Cross Ave Oakville(DINE IN ONLY) AVOID SLIPS AND FALLS THIS WINTER With the cold weather arriving it is important to be to reminded of a few safety tips to help get us through the ups and downs of winter. The impact of winter can be particularly difficult on the elderly. There is a heightened risk of falling and illness for seniors as the weather conditions change. Peak Home Health Care (PHHC) is a new service to Oakville and the GTA that allows seniors to live at home and have a professional caregiver come to them. Our personal care professionals assist with everything from household activities and maintenance, to providing everyday medical assistance for a variety of health conditions. "Falls or the risk of falling is how many of our clients first lose their independence" says Tyler, co-founder of Peak Home Healthcare. "It is important to remember that as we age our stability often decreases. Therefore, it is imperative that you take the appropriate precautions with the slippery and snowy conditions. Wearing proper footwear (boots, non-slip shoes), using canes or walkers for assistance, as well as asking for help." Peak Home Health Care completes a fall risk assessment when developing their customized client care plan. Peak travels to your home for a free-in home assessment and creates a plan that is specific to your needs. "We want to help improve the quality of life of our clients and that requires limiting risks and creating a safe environment" says Stothers. Throughout the winter season Peak will be working with other members of the community to help with snow removal and laying salt during icy conditions. Snow removal is another way in which many injure themselves during the colder months. "We know many Seniors don't always ask for help, but it is important for us to remind our clients that we are here to assist them with their desire to remain independent and within the community. Any injury, big or small, can have a large impact as you age" says Stothers. PHHC also urges families to stay in communication with their loved ones. It is important that everyone is prepared for risks associated with power outages and unsafe road conditions. Furthermore, it is imperative that seniors are taking the appropriate steps to protect themselves from catching the common illnesses that surface during the winter months. "As we get older it becomes more difficult for our bodies to retain body heat. In addition, Illness can increase this loss of body heat. Remember to bundle up when outside and inside, and look for signs of hypothermia (shivering, numbness, shallow breathing, and mumbled speech)". Every member of the PHHC team is required to have their basic CPR/first aid training, receive an annual flu shot, pass the TB test, and are fully bonded and insured. For more information on how we can help, call 905-582-7992, email info@peakhomehealthcare.ca or visit www.peakhomehealthcare.ca Chat Call orText CampingTent Posted by MikeToolGuy $70 Make Make Room Room for for Family Adventures. Adventures. Family and Sell Sell Locally. Locall y. Buy and Logo To Come ImProvIng tHe QualIty of lIfe for botH our ClIents and tHeIr famIlIes. ask us how we can help! servicing oakville, mississauga & the surrounding areas 905-582-7992 · www.peakhomehealthcare.ca Visit www.Tradyo.com Buy and sell in your neighbourhood. Customized Care · assistanCe & non mediCal · 24 hour home Care alzheimer's & dementia Care · hourly / respite Care