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| Adrian Mastracci, president of KCM Wealth Management, says “What a difference a year makes! We’re in the black. Opening statements is no longer a scary thought." |
For Immediate Release
Vancouver, BC (December 22, 2003): What a difference a year makes!
Adrian Mastracci, investment counsel with Vancouver’s “fee-only” KCM Wealth Management, comments, “We’re in the black. Opening statements is no longer a scary thought.”
“We have come a long way from the doom and gloom of a year ago,” notes Mastracci, “In a word, investors are much more confident about going forward then at any time during the last three years.”
“Practically all portfolios have reversed the anguish, even those that support retirement dreams,” says Mastracci, “Such as our pension plans.”
“For the first time in a long time, investment advisors are discussing capital gain strategies with their clients,” points out Mastracci, “Not just the perennial capital loss strategy of yesteryear.”
Mastracci highlights some of the notable events of 2003:
- Advocacy and mutual fund scandals are the buzz topics of the year. Hopefully, what will come out of this is a more even playing field for all investors.
- Many of the world markets are showing year to date returns in excess of 20%. Then, there is the NASDAQ with over 40%.
- War activities have inflicted a heavy toll on human life and the finances to support them. SARS has done the same.
- The economies of India and China are firmly entrenched on the radar screen. Moreover, they don't seem to want to relinquish their newfound position.
- Commodity prices have sprung back to life after being in the doldrums for many years.
- Mortgage rates have touched 45 year lows in the US and Canada, creating an unprecedented number of refinancings in both countries.
- Exchange rate surprises have highlighted the strength of the Canadian dollar and the Euro, along with the weakness of the US currency.
- We have seen a slowdown in the number of layoff notices in the US. Hopefully, this trend will continue and will soon show positive job creation numbers. The US needs about 150,000 new jobs per month just to keep even with the workforce.
- The consumer has continued to be a good bet, still keeping two thirds of the economy alive and well. Do watch for the level of accumulated consumer debt to bite one day.
- Let us not lose sight that we still have some matters to deal with. For example, the Canada/US softwood issue, energy costs remain high and smallish fixed income yields for retirees. Businesses are still exercising caution.
- The US deficit ballooned to 375 Billion in 2003. It is projected in the vicinity of 500 Billion for 2004.
”By all accounts, 2003 will go down as a very welcomed year for the history books,” adds Mastracci, “However, I predict that investors will miss the bear market. They will have to get used to paying the higher prices.”
“The diminishing fears and uncertainties will make the economic journey going forward a little easier to navigate,” suggests Mastracci, “Especially if we get some job growth.”
“So, is the economic recovery for real?” concludes Mastracci, “We hope so. It’s showing indications of a slow uptrend. But do keep watch for potholes of volatility.”
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