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By Angela Barnes
The Globe and Mail
Report on Business
Friday, September 27, 2002
Adrian Mastracci,
president of the Vancouver fee-only investment
advice firm, KCM Wealth Management
Inc., has a few hints for investors troubled
by the continuing market malaise.
He said in a market comment earlier this week that investing in
stocks in today's prolonged bear market can be risky if the investor's
time horizon is less than five years.
Adrian Mastracci, investment counsel at
Vancouver based ‘fee-only’ KCM Wealth Management, says,
“Investors should have a loss strategy such as selling a stock
if it is down, say, 30 per cent.”
Also, "making bets now in the stock market means that the
investor has reasonable expectations, is investing within his investment
profile, understands the level of risk being undertaken, is on a
path of prudent diversification and has a loss strategy to fall
back on just in case the picks go south even more," he said.
He also reminded investors that rough periods are "a normal
part of the investing experience" and so an action plan that
contemplates lower prices is a benefit. He suggests in the note
that investors gradually prune stocks that feel risky.
At the same time, he recommends "if stocks have that bargain
bin feeling, buy them gradually." He also said that investors
should have a loss strategy such as selling a stock if it is down,
say, 30 per cent.
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