SOURCE: Edward Jones

June 16, 2009 08:00 ET

One-Third of Canadian Investors Expect to Recover Market Losses Within Three Years

Canadian Market Strategist Kate Warne Offers Tips to Help Investors Prepare Their Portfolios for Recovery

TORONTO--(Marketwire - June 16, 2009) - Thirty-one per cent of Canadians expect their retirement savings to recover the losses from the past year within the next three years, according to a new poll commissioned by Edward Jones.

At the same time, a larger group of 39 per cent of Canadians believe it will take more than three years for their retirement savings to recover the losses of the past year.

The same poll was done in the U.S. and finds that Canadians are slightly more confident than Americans, as 26 per cent of U.S. respondents expect their retirement savings to recover the losses from the past year within the next three years while 51 per cent expect it to take over three years.

"While nobody can say for sure when the economy will recover, we do know investors can improve their situation today by taking some steps to be prepared," says Kate Warne, Canadian Market Strategist, Edward Jones. "Now is the time for investors to review their current situation, reassess goals and take action."

Warne suggests the following tips to help investors take action today and prepare for recovery:

Set-up your portfolio to prepare for the future, not the recent past -- historically stocks have provided higher returns than bonds or cash over periods of 10 years or more so now may be an excellent opportunity to add equity investments through individual stocks or mutual funds.

Seek out tax-saving opportunities -- the severe stock market downturn may mean you have investments in non-registered accounts that have declined in value. You may consider selling to trigger a capital loss and use the proceeds to rebalance and improve the quality of your portfolio. You might also consider contributing to your Registered Retirement Savings Plan, Tax Free Savings Account or Registered Education Savings Plan early to take advantage of the drop in stock prices.

Evaluate the diversification and quality of your portfolio -- review your portfolio to ensure it is well diversified, and is made up of good quality long-term investments. After the global market decline, your portfolio may need a tune-up. Sit down with a financial advisor to review and get back on track with your financial goals.

"This is the time for calm analysis, not fear and emotion," added Warne. "History tells us that adding money to a diversified, quality equity portfolio now could enable you to reach your long-term financial goals sooner. It's a conversation you should have with your financial advisor."

About Edward Jones

Edward Jones is a full-service investment dealer with one of the largest branch networks in Canada. It is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund, and a participating organization of the Toronto Stock Exchange. Including its affiliates, Edward Jones serves more than 7 million individual investors in Canada, the U.S. and the United Kingdom from more than 10,000 locations.

Edward Jones Limited does business in the Canada as Edward Jones and is a wholly owned subsidiary of Edward D. Jones & Co. LP, a Missouri limited partnership. Edward D. Jones & Co. LP does business in the United States as Edward Jones and is a wholly owned subsidiary of The Jones Financial Companies, LLLP, a limited liability limited partnership.

The Canadian survey results are based on a telephone survey of 844 nationally representative adults with retirement savings between May 14 and May 17, 2009 by Leger Marketing. A sample of this size will provide results that can be considered accurate within plus or minus 3.4 per cent, 19 times out of 20.

The US survey results... are based on a telephone survey of 694 nationally representative adults with retirement savings between April 23 and April 26, 2009 by CARAVAN. A sample of this size will provide results that can be considered accurate within plus or minus 3 per cent, 19 times out of 20.

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