Friday, May 16, 2008

This is what RBC tells it's customers in times of fluctuating markets

This is what RBC is emailing to their clients who have investments in the Canadian equity markets

As a self-directed investor, you know market volatility is unavoidable. And when volatility increases, as it has since mid-2007, you may be keeping a closer eye on your investments and considering your next steps. Staying committed to your long-term plan is critical. Equally important is confirming your tolerance for risk and building a disciplined approach to diversification into your portfolio.

Don't lose sight of your investment plan and goals - short and long term. Reflect on your comfort level with potential exposure to downturns and consider your options:

> I'm comfortable riding the ups and downs.
Validate your portfolio holdings using the tools and research available through your online investing site. These include various S&P portfolio styles: fundamental, quantitative and risk-adjusted. Plus you can look to research from RBC analysts including daily Canadian equity research summaries and market commentaries along with a quarterly global investment outlook.

> I'm having difficulty sleeping at night; I am uncomfortable with the volatility.
Use the asset mix calculator to review your risk profile and asset allocation. If your review indicates a decreased tolerance for risk, you may benefit from a more conservative portfolio; we offer one of the largest fixed income inventories in Canada, including GICs from over 20 issuers, to ensure access to the best rates available. You can also select from a wide range of mutual funds, providing professional money management across a large range of balanced, income and money market funds.

Once you have decided which option suits you, be sure to keep a disciplined approach to diversification and stay focused on your plan and goals. Stay current on the markets by looking at the Daily Morning Market Commentary, Canadian Equity Research Summaries and S&P Weekly Outlook - all found under the Research tab.

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