Starting Out

Risk
How well you handle risk is something that you must consider when you determine your investment objectives.

Like many things in life, investing has varying degrees of risk. There are different types of risk associated with different investments. For example, treasury bills experience less price volatility than stocks. It is important to recognize there are risks associated with the capital markets as a whole. Before you begin investing, you and your Investment Advisor must determine how sensitive you are to the possibility of a short-term loss if a security's price were to fall. What if the value of your entire portfolio was to fall?

Typically the risk associated with price volatility seems greater when viewed in the short-term. For example, Canadian stocks, bonds and treasury bills perform very differently in the short-term as compared to their historical long-term performance. Price volatility is the rule - not the exception - for some types of securities.

For more information, contact an Investment Advisor at a BMO Nesbitt Burns branch near you.

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Note: These comments are not intended to be a definitive analysis of tax law: The comments contained herein are general in nature and professional advice regarding an individual's particular tax position should be attained in respect of any person's specific circumstances.