“added to the overall rollercoaster 2 effect. a ihad the occasional urge to sell a everything. ‘Then I said to myself: “Practise - what you: preach. You’re supposed ~.. to invest in the stock market for the a “long term, and that means 10. 7” years. 2 take'a walk and smell the hyacinths — which will continue to bloom “every year around this time, no mat- fer what the economy is doing. © “Why is all this happening?) |. :.. Investors don’t like uncertainty . " — assassination in Mexico; ongo- . ing criticism of (and perhaps loss of. . confidence in} the Clintons; Hiots in South Africa; instability i in, — Moscow; fighting in the Middie . : io rry Our ‘elle imight - e Bank of. Canada and ven cane below. that level. Unless. you were sae away ously wondering about f the border a e been through enough sortie I stiould know it’s not But‘all' those dickening: slips ir in” rkets around the world — espe-" jally'in Toronto and New York — till bothered me as much as they: robably bothered you and most her ordinary investors. Those © ccasional upward swings merely ” . RATES ‘SUBJECT ae) CHANGE WITHOUT nomic MONTHLY INCOME. 3. YEAR TERM. GRE! CSB &GIC “ALTERNATIVE! “OPEN FEDERAL: GOVERNMENT- GUARANTEED MORTGAGE- ' : BACKED SECURITIES For more info on today’ 's best rates : : Please Call: The ‘North Shore’ ‘Ss only Pull Service Investment Firm - 981- ‘6600 (59 RBC. E DOMINION - ayes! . SECURITIES Member of ‘Royal bank Group East; nuclear rumblings i in North i. Korea. ; “ ‘ . So I decided to ignore the news, ms . hang on because I don’t think the Here in Canada, we have the Quebec question, and a federal bud- get that is only politically, not real- istically, optimistic about beating down the deficit, let alone the debt. So if you are a nervous investor, you sell your stocks and sit out the storm on a peaceful, reassuring pile. of cash. But if you are still i in the market, tide is over yet. Try to get used to it, especially if this i is your first time. Qtherwise, sell some stocks or routual funds (ideally during a “ swing up) until you reach the level at which you and your finances can stomach the excitement. ° In the U: S., the Federal ‘Reserve. has been raising interest rates to ~ -. make sure a growing economy _ doesn't produce more inflation. Then Canada raises its rates so investors don’t head south, Higher rates here cut borrowing; which cuts into spending. That ° hurts our economy and doesn’t help - our 11% unemployment rate. Still, higher interest rates are” great news for savers. I don’t know. exactly how far the rates will 80 Ups. or whether they'll stay high. . Nobody does. : But if you can invest at those higher rates, once again you'll have more to spend or reinvest, especial- ly if inflation’stays relatively low..... When times get tough, look for _ the opportunities. Buy good quality stocks or |. mutual funds at bargain prices. : . Diversify with ‘some foreign invest- ments. Perhaps set up a home busi- : -hess to reduce your vulnerability i in, . the employment market. , RTH Irs demux Hedge your ‘bets. Lock in some ’ savings in case ratés don’t go any higher — but keep some funds lig- “uid in case.they do... ° “Pay aff dett as quickly as you - can; that’s the best strategy - whichever way tates go. .° _.- Leam from living errough a all’ - this, so you can be in a better posi- tion the next time it happens...and ! the next time..." Inthe meantime, when the bad news Starts to hammer at your head,’ take yourself by the to those -: hyacinths. ' Mike Gienby isa 1 North Shore based columnist and independent °- * “ finandial adviser who works with 0. 7 individuals; he will’ answer. your: ‘, questions in this column as space “allows —write to him clo 2444: ‘Haywood Ave,;: West Vancouver, ; VIVIYI al, ea ; able annual - term: if you's re 55, it’ sa ‘great time _to’ be a ‘VanCity member. | “That's s because now you : can begin taking advantage : of our. Gold Club ~ : complete ‘package, of o _ charge financial services. ; And, it’s. easy because Gold Club membership is automatic... Great Rates Pius A Bonus. VanCity’s non-redeem- interest .. deposit rates already beat the posted ~ rates of the five major banks, Canada Trust and the HongKong Bank of Canada by. 1/4%, And on our 5-Year -Non- Redeemable Term Deposits, we beat them by 3/4%. , news ‘is even. “beter ‘9 any: member can wae advantage’ ‘of, ‘For a “limited time, when “you invest ina VanCity : Term Deposit, you can enter to wina $5, 000: dream vacation to anywhere i in 1 the world. For details, visit any, VanCity branch or call Tele- Service at 877- 7000. cal a | WE'RE VANCITY 877° 7..0°0 90 ® Deposits are insted up to $100,000 per “separate deposit” (as defined by regulation), per credit union, by the Credit Union Deposit insurance Corporation of B.C, (CUDIC). ** Draw date June 3, 1994, Entrants mtusi be 19 years of age or older. Odds of winning are dependent on number of entries received. Full contest rules and regulations available atall VanCity branches.’