A Proven Track Record

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Tiffin’s Advice made clients 14.18 percent

I advised you in the January issue of Marketplace to invest in our natural resources fund. Those of you who did made 14.18 percent in a single month.

Will it continue? Yes. Here’s why.

The outcome of last October’s referendum caused the dollar to drop. When this happened, our exports became cheaper. Every time the dollar drops a penny, we pick up $2 billion in export sales.

Our dollar has dropped 10 cents so far, triggering $20 billion more in export sales. We’re a big seller of natural resources.

How about NAFTA? Even as the Mexicans take our manufacturing jobs, they need the natural resources to make the products they sell back to us.

I believe the coming year holds much the same experience as last year. Why?

Because the Quebec issue has not gone away. Parti Quebecois leader Jacques Parizeau is gloating over English Canada’s rejection of Quebec’s demands and has set June 24, 1995 as the goal for Quebec sovereignty.

Foreign investors naturally shy away from countries in danger of breaking up. Our dollar will be worth less to them, will drop an interest rates will rise.

Investors should be careful of ”bait and switch“ mutual funds advertisements, or be prepare to lose money. Unless you have a self directed RRSP, you cannot put it into an international fund (that made 29 percent). I see that Owen Sound paper had this add, but it was careful to list the correct RRSP eligible fund. It made 8.4 percent.

In today’s economy, and having regard for the delicate situation at Douglas Point, don’t lock permanently into investments, should your circumstances change, be flexible.

Deposit type RRSP’s/investments will provide capital security. But they carry a re-investment risk and they won’t hedge against a falling Canadian dollar. Their historical returns are low, compared to growth investments.

Be careful when choosing a financial planner. Is he knowledgeable about the markets and staying current? Or does he simply want to sell financial instruments. Be prepared to move your mutuals around, responding to market opportunities.

Finally, I note the auto insurance rates this office sells has premiums among the lowest 20 percent. If you are one of one hundred people who phone for a quote, you have an 80% chance of getting a lower rate. Be wise: always ask!