Hello Fellow Investors
People have been receiving their investment statements now and many of you may be very worried about their investments . ,This is normal but are you aware that your statements may be misleading you because you are emotional which blocks us from thinking clearly.
Yesterday I asked Rosanna to print out the monthly returns because I wanted to prove to everyone of you ,that everything that I was predicting was coming true.
It is easy to see the daily figures such as China up another 406 points last night or 2% because its all over the news . But you have to wait a month so you can see just how much you have recovered from last years drop.
Seeing these figures would surely take the sting out of your current statements. What I knew was Silver was leading the way at over 22%,followed by Gold and China at over 12% followed by India and Brazil over 10% and Nasdaq up 7.2%.
So seeing them collectively on one piece of paper would be great ,especially when this was all done in only one month. Last time I made 14% in one month was 1993 being invested in Natural Resources and that fund did over 125% from June 1992 to June 1993.
So excuse me if I sound excited. .Now in you recall I kept predicting that it’s where you invest in the rebound that makes you rich . Something I learnt from Warren. When the markets went down he goes bargain hunting . When the markets went down I used Demographics to pin point the places that would earn the best results on the way up.
WHEN I GET THOSE NUMBERS YOU WILL SEE THIS
However when Rosanna Printed out the figures it was too early and all they showed was last months figures . So I started to read them and I noticed something that not only proves that our way of investing is the best but it should also make you feel better.
So what did I do.
When you look at your statement you only get the latest results.
When I get the print out I see the following 1 month ,3 month 6 month 1yr 3 yr 5 yr 10 yr. results.
We all know last year because of Europe was almost as bad as 2008. But here is the clue what did you do between that year and last year. To find out you need to look at the three year returns.
Many of the funds we use now have not been around that long so we can not review those but we can look at similar funds and see if a pattern shows up so here is a list and returns of the funds over three years
ACUITY CANADIAN SMALL CAP FUND 21.22%
AGF CANADIAN RESOURCES CLASS SERIES A 19.10%
AGF EMERGING MARKETS FUND 16.42%
AGF GLOBAL RESOURCES CLASS C 17.99%
AGF PRECIOUS METALS FUND 23.81%
CI CAN AM SMALL CAP CORP CL A 18.56%
DYNAMIC FOCUS RESOURCE FUND 31.92%
DYNAMIC PRECIOUS METAL FUNDS 24.27%
DYNAMIC SMALL BUSINESS FUND 21.48%
FIDELITY SMALL CAP FUND 18.84%
TRIMARK U.S SMALL COMPANIES 20.72%
MAC UNV CAN RESOURCES 25.37%
MAC UNV PRECIOUS METALS 26.38%
SEI CANADIAN SMALL COMPANIES 21.19%
CI GLOBAL SCIENCE & TECH 20.05%
BISSETT SMALL CAP FUND 21.00%
RENAISSANCE CDN SMALL CAP FUND 22.81%
RENASISSANCE GLOBAL RESOURCES 20.02%
If you have been investing in the following three sectors over the last three years then you have made money not lost it as first seen when you only look at the one year returns.
What is exciting is these averages which are mostly over 20% would be a lot higher if you do not have to add in last years losses.
It means in you were in invested in small cap funds,tech funds,precious metal and natural resource funds along with emerging markets funds you have been in the correct funds for the last three years despite the
drop in global markets . We have been telling people for two years now that you should be invested here. Now you have proof.
Kindest regards
Dan
Global Demographics Group