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Vancouver, BC (June 25, 2001):
Investors access several sources of information
to stay current on what is important to them.
They have an insatiable appetite for the daily
volumes of conflicting research, predictions and
advice. They scour the internet, newspapers, television,
radio, journals, investment newsletters, magazines,
annual and quarterly reports, press releases.
just to name a few.
Adrian Mastracci, fee-only investment
counsel and president of Vancouver based KCM
Wealth Management, comments, "More and more
investors that I meet express the irritations
of sifting through these enormous volumes of information
to make sense of what is appropriate for their
situation. Some are at the point of exasperation."
"As you will conclude, my winning recipe that
tames the daily burden of information overload
is short and simple," notes Mastracci, "First,
however, let's determine if the following scenario
sounds familiar to you."
You try to keep up to the business and economic
news of the day, both local and global. Your goal
is to achieve your unique financial independence.
You want to be informed before making your decisions,
especially those that affect your long-term direction.
Some quotes from analysts point to signs that
the recession is here. Not a day later, another
source disputes whether the recession exists at
all. Then there is hope about the improving retail
sales from the previous month. Next, you find
yourself browsing about renewed fears of inflation.
Familiar stock names appear in headlines, some
with notable regularity. One opinion says that
prices have bottomed. Then profit warnings rattle
the markets and even lower bottoms appear. Three
or four weeks pass, the expert opinion changes
again. It seems that fortunes are poised to turn
up.
Some reports say the economy's outlook is turbulent.
Soon thereafter, someone else comments that the
economy shows signs of recovery. It seems that
for every prediction of gloom there is one of
optimism.
Are you confused yet? Is this the classic case
of information overload?
"I empathize with the investors' frustration.
It is a huge undertaking even for professional
money managers who are trained to apply the appropriate
filters to separate relevant information from
noise," says Mastracci.
"My question is how do you make informed decisions
with mountains of conflicting information at your
fingertips?" notes Mastracci, "Moreover, are there
information filters available that suit you?"
Mastracci describes his winning recipe for taming
the overload. Here is the baking procedure:
- Prepare your written asset allocation plan
consistent with your personal goals. Wealth
accumulation is a marathon, not a 100-yard dash.
- Have complete confidence in your chosen strategy
before the implementation begins. There will
be plenty of temptation for second guesses along
the road.
- Have the discipline to stay the course throughout
the inevitable correction periods. Yes, more
are on the way and some corrections can be dramatic,
frequent and lengthy.
- Be patient with your chosen personal strategy.
Investment markets are volatile; hence, a longer
time horizon increases the probability of success.
Investments can be risky when the time horizon
is short, defined as less than five years.
- Have the courage to ignore the daily volumes
of conflicting research, predictions and advice
available instantaneously from various media,
trade publications and market gurus. Listen
if you want, just don't get distracted by the
noise.
"That is it! In a world of confusion, the winding
road is simplified." comments Mastracci, "My winning
recipe has just five ingredients, all available
near you."
Mastracci summarizes, "Those who adopt my winning
recipe will implement the essential tools and
information filters for successful wealth accumulation,
achieve better long-term results, and sleep well
during the process. Do you have some baking to
do?"
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