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THE KCM NEWSLETTER
Portfolio perspectives by Adrian Mastracci of KCM Wealth Management.
“Investment perspective on edge” RETURN TO NEWSLETTERS MAIN
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Step back from the uncertainty, be calm, look long-term.
Adrian Mastracci of KCM Wealth Management
Adrian Mastracci, president of KCM Wealth Management, says “The long-term investment perspective has served us well in the past. I recommend it highly to weather market uncertainty."

For Immediate Release

Vancouver, BC (July 7, 2005): Today’s events in London, England remind us that the world is vulnerable. Our thoughts and prayers are with the deceased, the injured and their families.

Fears and uncertainty makes us edgy again. The European markets have already taken a hit to the downside.

Adrian Mastracci, “fee-only” investment counsel with Vancouver based KCM Wealth Management, comments, “Our confidence is shaken a bit more by the events in London. Yet, this is the time to show strong and clear resolve in our investment perspective.”

“The key today is to keep the investment eye on the long-term perspective,” says Mastracci.

“Every past period of uncertainty can teach us about the resolve of our investment perspective,” indicated Mastracci, “Some notable ones are the 1987 crash, the Gulf wars, the 1998 Asian situation and of course, September 11, 2001.”

Mastracci offers some insight about navigating today’s edgy investment perspective:

  1. Stay calm. Keep your finger off the panic button. Any portfolio changes being contemplated should be made with the view of how they assist you in realizing your long-term goals.
  2. Consider yourself first. Ask yourself if your current portfolio composition is prudent to navigate you to your financial freedom and retirement aspirations.
  3. Review your game plan. Take the time to review your long-term game plan, which contains all the strategies you will follow to reach your chosen destination. Above all, have confidence in your blueprint. This removes the tendency to make investment decisions based on emotions. Expect additional volatility in the marketplace. It will be a welcome bonus if we don't experience it.
  4. Exercise caution. Businesses in North America and abroad will continue to adjust their business plans because of the increased uncertainty. They will also have more difficulty providing meaningful guidance about their prospects. The important question is how could this affect your portfolio.
  5. Concentrate on asset mix. The 1990 Nobel Prize winning studies concluded that long-term investment decisions surrounding asset mix have the greatest impact on your portfolio returns. Not stock selection, nor market timing. Clearly, this is the focus for every portfolio.

“Your investment perspective could be put to a more rigorous test from here forward,” points out Mastracci, “Resistance to making sweeping changes to portfolio composition is a virtue. Sometimes in short supply.”

“We need to adopt a clear and concise long-term investment perspective,” indicates Mastracci, “However, before we can adopt the wide view, we have to park the short-term perspective at the door.”

“The long-term investment perspective has served us well in the past. I recommend it highly to weather market uncertainty,” sums up Mastracci, “The marathon of managing your serious money is well entrenched. Keep a large dose of patience about you.”


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