Segregated Funds

In the news Friday,was an article about the shares of Citigroup going up $ 1.56 or 8.7%.

Did you see it?

Well, the reason for the excitement and why the shares ” surged ” in value, was because a loss of ONLY $ 2.5 billion or 54 cents a share was reported! As a loss of about $ 3 billion was expected,this now becomes ‘ good news ”

If anyone can explain this investment approach,I,d love to hear it.Segregated funds are much better than this 1 trick approach which can lead you to the poorhouse.You can read an article here on the general problem here

Or you can see more at www.segfunds.com

Segregated funds provide a safe haven in times of market turmoil such as we are going through now. But if you do not wish to see your investments change in value ,perhaps you should consider moving sideways into a money market fund where you will receive daily interest. Your segfunds could remain there until the market settles down, at which time you would change back to your original course.

You can find other segfunds articles at our websites http://www.segfunds.com/ and http://www.hughestrustco.com

Segregated funds have a base guarantee of the return of 75 % of your money in 10 years. But is that good enough if the stock market tumbles from here?

I am advising my clients to shift temporarily into a daily interest account if they are worried that the market will go down and stay down. While segregated funds are better than a mutual fund because of the guarantee, it may not be good enough for your nerves.

You can find other segfunds articles at our websites http://www.segfunds.com/ and http://www.hughestrustco.com

Have you considered moving your RRSP into a daily interest account until the market settles down?

That is what I am advising my clients to do as many funds have US or US subsidiary companies. Their investments will stay in a daily interest account until the market returns to a more normal trading pattern and then transfer back. The problem is that if the market falls it may stay down for an unknown period. With the daily interest account at least the face value of the funds remain constant.
In any event segregated funds always have that base guarantee of the return of the majority of your money.

On the other hand, this could all be just froth and things will return to normal fairly quickly; it’s your call.

You can find other segfunds articles at our websites http://www.segfunds.com/ and http://www.hughestrustco.com