Tuesday August 17, 2010 Morning Radio Advice

Markets are definetly higher this morning in North America and Europe. Weaker than expected housing data in the US is being overshadowed by increasing producer prices and positive earnings reports out of Home Depot and Wal Mart. In Canada, Potash Corp turned down a hostile takeover bid for $39 billion by BHP. Not only is this leading to speculation that BHP may increase their bid for Potash but potentially M&A activity may increase in Canada which is driving commodities higher. The Canadian dollar is also higher, up almost a penny just shy of 97 cents.
I mentioned I would highlight some investment pitfalls this week. The 1st investment pitfall is loss aversion. This is where investors experience a more intense emotional response from loss vs gains of equal magnitude. One symptom of this is that investors may sell their winners too soon or hold onto their losers too long. This is why it is important to have both a buy and a sell discipline. For a second opinion on your buy/sell discipline give me a call at 868-5525 or visit yourlifeyourplan.ca.