Saar eR ga EA PS ae a ae a RE LT RS SS RITE ve re re a a _ global equity markets experienced é Zn wallet, Ses Reo Dany AST ARTE SSE pba eal 4B oh RE Deed REA IE Sy wre SFE ARN Ti TE EE SE RE nat a cane . eg ET ee wot net Saye te . . ce a Bish _ Columbia _ Prairies. Source: Toronto. Dominion Bank regions increasing most in Ontario, following. by Quebec, Atlantic Canada and the Prairies i in that order. It was a nail- -biting. year for the market in 88 | It’s been a scary year for investors ’ siding the stock market. rails through. 1988. But staying on the | equity track has paid olf for some stecl-nerved individuals... 7. Some of. the investors who weathered the October *87 collapse . —orboughti into the market at post- crash-prices — have made moncy. And despite the apparent distaste for equities being shown by both - retail. and institutional players, “there is tremendous Value. in the. stock market,” said Tony Yue, vice- president.of Vancouver-based _ brokerage firm Pemberton Houston ‘Willoughby Bell Gouinlock Inc. Its been just over a year since their blackest session ever, An es- timated $2 willion was lost around the world as the. biggest stock market crash in history ignited : an international selling panic. . Bull market toppled - Topating the longest bull market , in history, the Dow Jones industrial _ average in New York dropped 508 points, or 23. per cent to its crash low of 1738. Since then; the 30 stocks listed ‘on the Dow have ‘slightly, more than recouped the . Oct. 19 losses but the index is still 18 per cent below its record high of - 2641, reached in August.1987, - ‘The Toronto Stock Exchange 300 composite index plunged 621 ‘points, or 17 percent, bythe close of trading Oct. 20, 1987. Since reaching its low of 2838 Oct. 28, the TSE has recovered but is still some - 6 percent belowits pre-crash levels’ and 15 per cent short of its record of August '87. - The losses —- and gains — have been uneven. Based on price chan- ges since Oct. 16, 1987, 10 of the TSE’s 14 industrial sub-groups | have posted price gains since the’ crash, The losers include. the gold, paper and forest products, oil and gas, and consumer products sub-in- dexes.. In contrast, the communications Moving? “ Too many people forget to take ~ care of their banking affairs before they miove. In doing.so, they miss *.”- out on some valuable bank SCIVICCS | _ _ *which could help them avoid later ~ “headaches. . + Take. one example, everybody's ° ‘basic chequing account. Com- ” puterization has made same-day _ transfer of funds a commonplace ~ event, while cheques can take a few ‘days to process. IF you haven't * enough in the old account to cover “cheques written on it, your cheque Swill automatically be.retumed. No- ‘one necds the aggravation of deal- . ‘ing with a cheque marked Not Sufs . "ficient Funds, ' A litle timely. attention wo that .._ chequing account could prevent the | annoyance 2 ane t potential damage - Don’t forget the bank : oe - Canada is very much a nation of the movel It’s estimated that some "2,000,000 of us make a move every. year —an annual migration charac- -.. terized by stress and a sense of “I . ‘know I’ve forgatten something” *~” which is too often true. caused by a cheque that bounces - while funds are being transferred to the new account. Homcowners sometimes. ap- ‘proach the bank for “bridge finane- _ ing,” which will cover the purchase — of anew house before the old one is sold. This is especially useful when the two homes are some distance ‘apart (c.g. Vancouver and Montreal), and timing is crucial if the moveis to be relatively problem free, Special, packages - Some banks have e special pack- ages of services: to assist with a change of location as long as-you intend to switch to another branch of the same bank. The package will - usually include: Oirccommendation of.a branch in the new location; Otransfcr of outstanding loans (car, _ furniture, monigage cle.) 0. the “new branch, . Qeclosing. of safoheeing sotviees:. index has gained about 40 per cent : and the real estate group-about 30 per cent, while-the pipelines, finan- cial services, merchandising and transportation sectors have posted advances in the 20 per cent range. Growth expected in 2-2.5% range ‘Most invesument experts expect the Canadian economy to chug - along at about a 2-2.5: per cent growth rate at least until the third quarter of 1989, before possibly. heading. into recéssion. That forecast, combined with an es- timated inflation rate of 4.3 per cent this year and 5 per cent in 1989, bodes well for the stock market. Yet not all industry. groups will post capital gains, according to the experts, The. post-crash underper- formers, such as the mines, paper and forest, investment companies and auto.and duto parts stocks; will continue to lag the market: Green Line Report, Toronto. Donic fe Bank, Nov. 1986.- + (safely deposit. box, safekeeping) and ‘optional. trans- fer to the new branch; Qtransfer of accounts (personal, chequing, RRSP, GIC, etc.) and, of course Oleaving a forwarding address. - Banks are prepared to go to great lengths in order to retain customers. Your manager may provide a Iciter ‘of introduction to the manoger of the new branch which can be a usc- - ful tool in establishing credit. ” ‘There are also the “freebies” such as free customized cheques with the new account number. As well, some -banks don’t-charge normal com- | mission on traveller's cheques. . Services vary with the banks, but you'll never know what they offer until you ask, The Canadian 1300, Station A. Toronto, Onl. MSW 2NE) ‘bonds ‘in | By Harry L. Mardon _ One of the minor mysteries of the investment world is, why don’t more Canadians invest in money market funds? - It’s estimated that fewer than 120,000 Canadians have invested in -a money market fund, whereas more than 16,000,000 Americans . enthusiastically use. this type of in-. vesiment, In dollar terms, Canada’s 46 money market funds have total, assets of about $1.6 billion while the 400 or so U.S. funds have assets of more than $255 billion, This type of mutuat fund provides significant | benefits to those savers and investors who look for.a good interest yield, a minimum degree of _ _ risk and easy access io their money. This Toronto- Dominion Bank chart forecasts compound annual growth rates in 1987-1990 in Canada’s A money. market fund pools the contributions of all its clients to in- vest the money in such low-risk _ financial-instruments as federal ~ government treasury bills and com- “mercial paper, These securities are issued by governments and large corporations who need tc borrow money on a short-term basis, In order to attract that money, the bor- rowers offer a higher interest than bank savings accounts provide. Two days notice The closest competition comes _ from bank term deposit certificates, in terms of interest rate. However, .. _ you don’t have immediate access to your money as it is locked in for the “term” of the certificate. In contrast, you may withdraw, all or part of your money ina money market fund within two business days. _ “Some funds ‘offer even ‘easier withdrawals, through the use of a chequing service. Usually you have: to have $10,000-plus in your fund account to enjoy this Service, but you have instant.access to your money. The fund honors your che- que and your account is deducted for a matching amount. Once you have invested in a money market fund your money is ' continually at work for you. Your Money market fy funds a ‘| are often overlooked — " proportionate share of the: die a ment pool's interest earnings is al- located daily and compounded monthly. The long-term effects of. - compounding are spectacular as. your monthly interest earnings go into the automatic purchase of ad- ditional money market fund units, which in turn earn interest. - Another useful feature of this type of fund is that you can tap your in- — vestment for aregular amount: of in- come, if your. balance exceeds $10,000. You can choose to have . ihe monthly interest income earned on your account paid out. lo. you regularly. Include RRSP - ‘Some mutual fund companies also offer the option of having your _account established as a Registered Retirement Savings Plan (RRSP). If you select this option your con- tributions to the fund are tax de- ductible, within the usual RRSP . contribution limits. The great ad- vantage of having a RRSP account is that the compounding interest earnings are fully tax-sheltered during the lifetime of the RRSP. As a general rule, however, a money market fund is best suited as | a convenient place to “park” some of your savings dollars for a period of time, until an even better invest- ment opportunity comes along. In itself, a money market fund is not an ideal long-term investment -— particularly now that the $1,000 a . year interest income exemption has ‘been abolished under finance Min-. ister Michael Wilson’ ss0-called tax reform. - During periods of stock market * turbulence a good many canny in- vestors shelter their investment dol- lars within the money market. Once the worstof the bear marketappears to be over, they transfer their funds into good growth stocks. Americans by the millions see the — benefits of this. approach; _ Canadians are slowly catching on. Harry Mardon is manager of corporate communications for Investors Group inc., the Winnipeg-based financial planning ser- vices company... Here’s Why! secs and accumulate raxshetvered 1Y/* essen recire- ment with a TD RSP! That makes ic a good invest- ment for your lifetime, whether you're 210 71 Open a TD RSP today and... ...Enjoy these benefits of TD RSP service! # TD's NO FEE RSP! Untike many financial insiturions who charge fees for RASPs, TD otters gwo NO FEE RSPs. The NO FEE TD Daily Interest - The Investment for Your Lifetime Savirwa RSP offers you high ince rar chat increase as your tviogs build TD OLIN ag achoke ofa MER at ‘hat sults you best Please visit »'No Load’ Mutual Funds for income and growth! 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