Prepare now

Dear Mike:
I’m sorry to hear about the mill shutting down and wish the best to those affected.
The reason for this letter is to help Fort Frances residents avoid further loss.
Those who saw their mutual fund accounts drop when the dot.com bubble burst, and suffered losses again in 2008, have an opportunity this time to avoid repeating this experience.
Given all the circumstances, a third major loss could be devastating, especially for those in or nearing retirement.
There is a seven-year cycle that most people are unaware of. The stock market peaked in 2000, again in 2007, and appears to be topping again—seven years later—here in 2014.
What followed each of the previous peaks was a major decline that saw every-day investors lose 30-60 percent of their wealth in a matter of months.
Bond mutual funds appear to already have begun their descent. Mutual funds that invest in stocks may reach even more irrational highs before reversing.
Regardless, I believe there’s currently far more downside risk than upside potential for the average person with an RRSP.
Getting together with one’s financial planner now to prepare for the challenges ahead may be prudent.
Fortunately, there are a select few investment funds that reliably go up when the stock market is falling.
I’m happy to share these with anyone interested.
Sincerely,
Craig Brockie
(former resident
of Fort Frances)