Thursday August 19, 2010 Morning Radio Advice

Most Asian markets finished higher and it looked like we might be in for a positive start as some good economic news out of Germany and the UK sent European markets higher. Unfortunately, disappointing initial jobless claims and shrinking manufacturing in the US has pushed markets into the negative. Most markets in Europe and North America are down over 1%. The TSX is only a little over 1/2%. Shining gold is cushioning the fall.


Today's investment tip is not to react to news. An investment pitfall is availability bias which occurs when investors add more weight to more recent & readily available information. Some symptoms are choosing mutual funds that are heavily advertised, overreacting to the latest news and believing an opinion to be fact. Again a buy/sell discipline will help you avoid this pitfall. For a second opinion on your buy/sell discipline call me at 868-5525 or visit yourlifeyourplan.ca.