December 2002

To All My Investment Pros, Bravo!

Another year is drawing to a close and what a trying one it has been for stock market investors – not to mention their financial advisors! Although stock prices have risen considerably over the past several weeks, the major market indices will most likely finish the year in the red. Not since the early years of World War II have North American stock markets lost ground three years in a row!

Needless to say, these are truly extraordinary times we are living. Yet, from market mania to market meltdown, you have all conducted yourselves like real pros, sticking to the plan, never letting greed or fear get the better of you. (Not that some of you weren’t a wee bit tempted!) I am impressed and very proud. BRAVO! When the markets come back, as we know they will in time, you will all reap the rewards of your patience.

In the meantime, this experience only confirms for you the benefits of a well-diversified portfolio. “It could have been a lot worse,” is what I have heard many times over the past several months. How very right you are. The media is littered these days with the horror stories of investment plans gone terribly wrong.

And then there is the miraculous come back story of the real estate market, something which many of you have benefited from. If you own some rental property or even just your own home, chances are your total net worth has increased despite any stock market losses. Yet, it wasn’t that long ago when properties took months to sell even at rock bottom prices. This turn-around does not mean we should all now abandon the stock market and rush into real-estate. Not at all. What it does say is that patient money is always rewarded in the end. What’s more, it pays to spread out your savings across different asset classes. As one of you put it so simply, “When one thing goes down, another goes up, so you’re always ahead in the end.” Such is the beauty of diversification.

It has been a tough year, but I feel so very fortunate to have been through it with clients like you. Not only have you proved your mettle as investors, you have been amazingly understanding and supportive. It is a real pleasure working with you and I thank you for that. You are the best!

HAPPY HOLIDAYS ALL THE BEST FOR 2003 !!