18 — Wednesday. January 27, 1999 ~ North Shore News nN : 4 = (e >) I\ i GlLuachltsy 3 = + evise a foreign po Chris Carter Contributing Writer THE cornerstone of pru- dent investing has always been to diversify your investments. Nor putting all ef your eggs in the same basket, so to speak, has been preached to the investing pub- lie ad nauseam. Surprisingly, when it comes to our RRSPs, this sage advice contin- ues to go unheard by almost half of Canadians. In a recent survey of RRSP investors, more than half were unsure if they had maximized their allowable 20% foreign content. A staggering 43% of those surveyed had no portion at all allocated to the international markets, Perhaps 1998 brought a much- needed reality check and hammered home the importance of going global. Modern investment portto- ho theory suggests that by including international investments in your portfolio, you not only increase the likelihood of higher returns, but also reduce risk, up to a point. The tremendous variability of returns between different investor's portfolios this past year can certain: ly be explained in part by the alloca- tion of cach of those porttolios. Annual returns for world markets ranged from the disastrous losses of emerging markets, disappointment in Canaaian small company and resource stocks ta the impressive double digit gains of U.S. bench- mark stocks, as well as those in Your North Shore Investment Services Team {va Dietrich, CFP Edgemont Village Branch tel: 980-7957 Heather Brandy, CFP Stella Tong North Vancouver Branch tel: 903-7021/7022 Tom Renneng, CFA West Vancouver Branch tek 922-3311 Germany, France and the U.K. In the Jast ten years, the TSh300 benchmark for Canadian stocks has failed to crack into the top five rank- ing of world markets further arguing the point. Canada’s market accounts now tor fess than 3% of the roral com bined world marker. Evea the US, which thirty vears age represented two thirds of global steck marke: capitalization, taday accaunts tor half thar namber by virtue of the growth which has taken place out- side North America, According to Warren Jetsin, Rank of Nova Scetia senior vice president and chic! economist. siz- nificant challenges await Canada as we approach the new millennium. Unfortunately, he is not alone in his view. Although diferent econo mists may have distinct GDP esti- mates, most forecasters predict Canada’s cconomic growth rate to slow through 1999, tollowing the United States, our major partner in trade. In addition to perennial issues — lagging household and corporate earnings, a soft currency and politi- cal uncertainty —— a cast of global concerns forgotten by stock markets for the time being still remain lurk- ing in the shadows, Global econamic slowdown, worldwide industrial: overcapacity, deflationary price pressures, finan- cial stress fractures in some highly leveraged developing nations and the YZ2K computer glitch took cen- tre stage mid-way through 1998. Although not making headlines at Glad to be of Service Getting from where you are isday to where you want to be deesn’t just happen. f takes the moment, these svmptoms remain at large and could: prolong the recovery of natural resource dependent economies of the world, including ours. Market strategists from) around the world Keep a close eve on utese factors and continue to daveur opportunides that lie outside Canadian borders. The following table isa summary af the average predicted increase/decrease tor cach major niirker indes. In cach market, major financial institutions were polled, Australia to the end cf 1999, 8.7% Relgium to the end of 1999; 12.9% Britain to the end of 1999: ] Canada to the end of 1999: France to the end of F999! 18.3% Gernjany to ihe end of 1999: 19.8" Hong Rong to the end of 1999, 20.5% Traly to the end of 1999: 14.1% Japan to the end of 1999: 15.5% Rorea to the end of 1999:32.0% —— Source: Reuters business news pol December 1998 Now js the time to review your RRSP's investments and ensure that vour allowable 20% foreign content ts being put to its best use. Your financial advisor can assist you in selecting investments appropriate for your objectives and comtort level. — Chets Carter is an tnvestmens executive with ScottaMeLcod fue. in North Vancouver. He is also the daily business commentator on the BCTY Morning News. He can be reached at OS1-7618. m Andrew WS. Donald NEWS photo Mike Wakefield IT’S tirne to review your RRSP's investments and make sure that you’re using your 20% allowable foreign content to its best use, Says Scotia McLeod investment executive Chris Carter. Pervez H. Patel /nvestment Manager CANADIAN INVESTMENT CONSULTANTS (888) INC. President Cordially invite you to aitend an Informational Night > RRSP's - Tax Time Bomb?? Retirement Planning »> TAX SAVINGS: Mutual Fund - Annuities! » Achieve 100% Foreign Content in your RRSP! » WORLD MARIETS - Outiook for 1999 & beyond Guest Speakers: . Karl Palman, C.L. Group - Feb 2 & Feb 23 a carefully planned investment portfolio. this kind of planning requires personatized attention, the kind of altention you'll receive from your North Shore Investment Services Team. As a member of the HSBC Group, we can offer you global expertise through our network of over 5,500 offices in 81 countries and territories, That means you can take advantage of a full range of investment products and services as well as traditional banking services. For a personal appointment, call us today! HSBC > ‘OH Fidelity argaret at 43 Co-Sponsored by: Snvestmenitss Ganada MUTUAL FUNDS We're here to get you there.