Adrian Mastracci, president of fee-only KCM Wealth Management, says "Investors have been affected in a variety of ways. Perhaps, more in 2002 then in any past year still within our memory. Practically all portfolios have felt the anguish, especially those that support retirement plans."

For Immediate Release

Vancouver, BC (December 27, 2002): The business events of 2002 have been felt by many.

Adrian Mastracci, investment counsel & financial advisor with Vancouver’s “fee-only” KCM Wealth Management, comments, “Quite a lot has taken place on the business and economic fronts during 2002. There are numerous events, each of which adds its own visible impact.”

“Investors have been affected in a variety of ways. Perhaps, more in 2002 then in any past year still within our memory,” notes Mastracci, “Practically all portfolios have felt the anguish, especially those that support retirement plans.”

“The events of 2002 assisted in shaping some dramatic investment changes,” explains Mastracci, “Such as dumping equities and redirecting the funds into real estate, savings accounts and bonds.”

“Several stumbles surfaced during 2002,” adds Mastracci, “Investors worried about everything from corporate earnings, to remaining employed, to the affects of potential wars and a host of others.”

Mastracci highlights some of the notable 2002 events:

• The anniversary of September 11.
• A sampling of the bear market clippings of 2002 looks like this, as of today:

• To the astonishment of many, a bull market has been raging in the bond market.
• The corporate accounting debacles and the demise of the accounting firm Arthur Andersen.
• The impact of bankruptcies such as United Airlines, Enron, and Global Crossing.
• Securities and Exchange Commission now requires companies to sign off financial information.
• The continued slide in fixed income yields and its affects on retirement incomes.
• The value of Wall Street stock research has been questioned and scrutinized.
• Significant job losses in the US.
• Pension plan deficits, such as at GM & IBM, must be dealt with out of corporate profits.
• A barrel of oil increased $10 to US $32.50 while gold is hugging US $350.
• The continued interest rate actions of the US Federal Reserve.
• Companies are experiencing more difficulty in providing guidance to their shareholders.
• US Government deficits are coming back.
• The US$ is coming off its high, while our Loonie is hovering around US 64 cents.
• For now, Canada’s economy is doing a little better then the US.
• The US economic recovery can be described as sluggish, with continuing fears and uncertainties.
• The US consumer borrowed heavily and refinanced just about everything.

”By all accounts, 2002 will go down as a forgettable year for the history books,” comments Mastracci, “Good riddance and out with the old... everyone is wondering what's going to work next year.”

NOTE: The information provided above is intended for general informational purposes only. It does not constitute advice for anyone's specific situation. Everyone should always first consult directly with their advisors to determine the appropriateness of any information contained above before taking any action. KCM Wealth Management Inc. assumes no responsibility for any loss or damage arising from the use of, or reliance upon the above information.