Other safety features include large working capital, stable cash flow and a record of increasing dividend payments. The answer comes down to perception and marketing. Managers are often forced into buying the latest hot sector to keep up with the returns of the other competing products in the rising market. In the end these same managers end up competing for the greatest losses when the bubble inevitably pops. Not so today.
Value investing is a very real alternative to the agonizing volatility of investing in bubbles.
A seminar devoted to the value-investing philosophy will be held May 2 at the Shadbolt Center in Burnaby. Call 436-1077 to book a seat. Eric Muir is an investment advisor and Certified Financial Planner with National Bank Financial. North Shore News a division of Lower Mainland Publishing Group Inc., a division of Southam Publications, a CanWest Company. All rights reserved.