Nathan VanderKlippe
Northern News Services

Yellowknife (Feb 11/02) - Investors beware: when thinking about what to do this year, you may want to work in the world of the generalities.

John Williston is recommending that people in invest in Europe. He says the most important thing is to stick to the fundamentals of investing: buy low, sell high. - Nathan VanderKlippe/NNSL photo

That's because investment advisors are loath to dish out specific advice, relying instead on time-tested mantras: "diversify" and "invest early."

"I hesitate to recommend one particular area to invest in," said Robert Aube, financial services manager at the Iqaluit Bank of Montreal. "The right investment for one person, or situation, is not necessarily the right investment for another. It totally depends on the goals and risk comfort of the individual."

Aube recommends starting with a plan, investing early and regularly, investing the maximum allowable -- especially in RRSPs, which serve as tax-sheltered investment -- and working toward a blend of asset investments.

Don't wait too long

For example, he said, investing $5,000 over the next 20 years in RRSPs at a six per cent return rate would yield $55,000 more than investing $10,000 over 10 years.

"The longer you wait, the more long-term potential you're missing out on," he said.

Most investors shouldn't concern themselves with short-term fluctuations in the stock market, said Yellowknife-based Investors Group financial planner John Williston.

"If you're retiring in 15 years, let's not look at what's happening in the next three months," he said.

Williston also warned against buying into stocks simply because they have performed well over the last year.

That, he said, contradicts the most basic of investment principles: buy low, sell high.

For specific investment recommendations, Williston would only say that he is overweighting his clients on European investments. He is also moving out of the bond market.

"There are a lot of nervous people coming in," he said.

"They want to cocoon and go into that bond environment right now. But the time to be overweight in bonds was in the past two years."

As for the Canadian economy, he envisions the pace will pick up again.

"We're anticipating that it will (pick up) -- we've got good fundamentals in place."