September 4, 2008--stock market commentary

Greetings!!

I hope that everyone enjoyed some summer relaxation. I want to send you a brief note of update on the markets and an article to read to provide perspective. The recent decline in the Toronto Stock Exchange index is actually good news for value investors like myself [and therefore you]. The reason for this is that value investors do not buy the index [TSX] which is currently loaded with resource stocks [oils, minerals, fertilizer...] which are currently in some kind of free-fall. And with a free-fall in over-priced stocks, investors everywhere tend to shift their money to quality companies with stock prices priced for value.

Well, these are the companies that value investors already own which currently includes, for example, bank stocks. I expect the shift to value stocks to continue which will reward value investors who, admittedly, have had to be a patient bunch lately. But, it's a pattern we've seen before which has provided long-term value investors with excellent returns and "fewer free-falls."

So don't be alarmed by the news on the falling TSX. I'm providing below a recent article that argues for a view that I share and have written about in my last several newsletters. Please have a read in order to gain perspective on what's been happening in Canadian markets. I provide the article because I couldn't have said it better myself. http://www.theglobeandmail.com/servlet/story/LAC.20080903.RHEINZL03/TPStory/Business Questions?

[If the above link is not clickable, copy and paste it into the address bar of your browser. If that doesn't work, let me know and I will get the article to you].

Warm regards and bye for now,

Tom

Tom Buck, M. Ed. CFP
Certified Financial Planner
Assante Financial Management Ltd