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Show Thursday, July 14, 2011 The Gunnison Valley Gazette Page 5 Fear of losses may lead to Outdoor Report negative investment behavior ThE Complete Hunter Education Now Submitted by DARIN FRANDSEN Like every other investor, you prefer not to see the value of your investments drop. But at some point they will fall simply because of the ups and downs of the market. And how you respond to short-term losses can help determine if you enjoy long-term investment success. Investors' feelings about losses can be complex. In the field of economics, an area of study is devoted to "loss aversion" — the concept that people dislike losing money so much that, given a choice, they'd prefer to avoid losses rather than take gains. For example, if you have a high degree of loss aversion, then you will find greater dissatisfaction by losing $100 than you'd get satisfaction from taking a $100 profit. Loss aversion can lead to various forms of negative investment behavior. Here are two of the most common results: • Seeking "risk-free" investments — When you think of in- vestment losses, the first thing that probably comes to mind is a drop in stock prices. If you're really loss-averse, you might seek to avoid this situation by simply avoiding stocks and placing all your money in other investments. While some of these investments may seem "risk free," you must consider factors such as inflation risk — the possibility that these investments may provide returns that don't keep up with the rate of inflation. • Holding "losers" too long — From time to time, you will own investments that, for whatever reason, underperform. If you're highly loss-averse, though, you may have a tough time acknowledging the losing nature of these investments, so you may be tempted to hold on to them until they "bounce back." But if the investment's fundamentals change, or if the investment no longer aligns with your goals, it may be time to sell it and look for other opportunities. Conversely, you may want to hold on to quality investments whose price has dropped in the short term, because these investments may well recover. How can you avoid these types of behavior? For starters, you'll need to recognize the symptoms of loss aversion in yourself — and then resolve to overcome them. Accept the fact that shortterm losses are part of investing and that every single investment carries some type of risk. This doesn't mean, of course, that you should do nothing to reduce your risk. One effective risk-fighting measure you can take is to diversify your holdings by investing in a variety of stocks, bonds, government securities, CDs and other investment vehicles. If you had all your holdings in only stocks or bonds, a downturn primarily affecting one of those assets could lead to a big hit for your portfolio. But by spreading your dollars among a variety of investments, you're also spreading the risk. Keep in mind, though, that diversification by itself can't guarantee a profit or protect against loss. Investment losses, even short-term ones, aren't much fun. But by not overreacting to these losses, and by diversifying your portfolio in a way that best meets your individual needs, you can look past today's losses toward tomorrow's possibilities. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. FINDING THE RIGHT FINANCIAL ADVISOR IS AS IMPORTANT AS FINDING THE RIGHT BOND. At Edward Jones, you'll always have the ability to find quality investments. But the service and respect you'll get go far beyond the numbers. So take a look at the figures below, then call to learn more. 1. Government-sponsored Enterprise Notes 4.15% to 5.46%* Guarantee applies only to the payment of principal and interest. 2. Federal Income Tax free Bonds 3.33% to 5.35%* - Interest may be subject to state and local taxes and the alternative minimum tax (AMT). Insurance does not eliminate market risk. 3. Corporate Bonds 3.34% to 6.21%* *Yield effective 05/01/09, subject to availability and price change. Yield and market value may fluctuate if sold prior to maturity, and the amount you receive from the sale of these securities may be more than, less than or equal to the amount originally invested. Any bonds called prior to maturity may result in reinvestment risk for the bond owner. Contact your local Edward Jones Financial Advisor for more information about maturity dates and applicable call provisions. Bond investments are subject to interest rate risk such that when interest rates rise, the price of bonds can decrease and the investor can lose principal value. Call or stop by today. Darin K Frandsen Financial Advisor 446 South Mall Drive B-7 St George, UT 84790 435-627-2159 www. edwardjones.com Member SIPC Edwardionei MAKING SENSE OF INVESTING Young people who want to hunt in Utah have a reason to be excited—the number of special hunting days for young hunters is growing. The DWR is encouraging hunters to sign up for a Hunter Education class now - the fall hunts aren't that far away. For example, on Sept. 17—a week before the regular chukar and Hungarian partridge hunts begin—those 15 years of age and younger can hunt partridge. And a chance to hunt ducks and geese two weeks before the regular waterfowl hunt starts will likely happen on Sept. 17 too. But you can't take advantage of any of the state's youth hunting days if you haven't completed the state's Hunter Education course. With the start of the special youth hunt days and the regular hunts less than three months away, early summer is a perfect time to take the course. Kirk Smith, assistant Hunter Education coordinator for the Division of Wildlife Resources, says if you wait until just before the hunt days arrive, you might not have time to complete the course before the hunts happen. "Save yourself the disappointment of missing out on some great memories and fun," Smith says. "Sign up for a Hunter Education course now." Smith's invitation is for adults, too—if you were born after Dec. 31, 1965, you must complete the course • I to I"' oto The DWR is encouraging hunters to sign up for a Hunter Education class now - the fall hunts aren't that far away. before hunting in Utah. Hunter Education classes are held across Utah. You can also take the course online. (If you complete the course online, you must still attend a field day. The field day runs for about five to six hours.) See a class schedule and get contact information for the DWR's volunteer Hunter Education instructors. The DWR provides two ways to take the course—in a classroom, or online. Smith says each way has its advantages. He says the biggest advantage to the online course is its convenience. "Young people are usually busy with lots of activities in the summer," he says. "The online course provides a way to take the course at a time that works best for them." Taking the class online also allows the young person's parent to sit by their side to make sure they understand what they're learning. The young person can also learn at his or her speed and can review the material as often as he or she wants. If you're a parent who doesn't know much about hunting, accompanying your child to a course in a classroom might be the best choice. "The classroom courses are ran by trained volunteer instructors," Smith says. "The instructor should have answers to questions that you might not have the answer to." Whichever way you choose, a shooting test— where the young hunter shows that he or she can safely handle a small-caliber rifle and can shoot it accurately—is also a required part of the course. The Outdoor Report is Sponsored by: *". 528-5001 Hwy 89 Northeast of Gunnison Open Monday - Saturday !=i SATTERWHITE LOG HOMES Family. Experience. Ouality." The First Word and Last Name in Log Homes! Think Satterwhite for Log Homes, Rough Lumber, Timbers, Animal Bedding and Firewood into all the World Gunnison Drug Company • 1957 Sponsored by HERMANSEN'S MILL 204 South 1st East • Gunnison 528-3136 Feeds • Grain Storage • Fertilizer Seeds • Farm Supplies • Chemicals The helpful place. Is sponsored by: 444002•4... F4UI4 mNIII/70/04,44 Factory Authorized Dealer 41101 your comfort specialists caLL jed 528 - 3988 50 E. HWY 89 - Gunnison ACE Paints Sporting Goods Whirpool Appliances 528-7513 This week's Heap of the Week goes to Bo Burrell. Bo drives a tan Chevy Impala. "I'm only 15. My dad is teaching me to drive!" WEEK into all the lcorld is sponsored by Rasmussen Ace Hardware 11 !4P WEEK HEAP of the Elder Colton Lund is serving in the Mozambique, Maputo mission. He is in an area they call T3 on the outskirts of Maputo. He loves this area and the people there. Elder Lund is "almost" headed home, he will be released on August 8th and return to the U.S. on August 15th. Colton is the son of Scott and Suzette Lund of Centerfield. Heating & Cooling Systems 435 South Main • Gunnison Pizza • Calzone Breadsticks • Salad 014 CA9Ct4 Free Delivery (Limited Area) 528-3792 57 South Main • Gunnison qa.NI- to Seiroe Specialty Pizza's: thicken Alfredo • Philly Steak 8 Swiss • BBQ (hicken • (hicken Bacon Ranch Stix of all kinds: Bread Stix • (heerstix • Pepperoni Stix • Hawaiian Stix • annastix • Yummy Stix lunchtime Special: Pizza by the Slice COACH S LOTSA MOTSA SPORTS CALENDAR GVHS Volleyball Try-outs August 8 & 9 • 9 am • GVHS |
