The Upside

Dear Member,

The TSX Composite lost 954.83 points last week. Take a moment to let that sink in because it's unlikely to happen again for a very long time. It has been 8 years since we witnessed such a dramatic loss. Significant drops like this create panic and more importantly, BARGAINS.   Value investors aren't scared right now because they know the market will rebound. They believe in the long-term fundamentals of the companies they have invested in and they know this is one of the greatest buying opportunities we have seen in the last 30 years.   Important Facts:   August and September are the two worst months of the year to achieve positive returns in the market. October has proven to be a great month for the market and November and December have proven to be even better.  We believe we are approaching the ideal time to accumulate new positions in the equity market.   The following data has been produced by Brooke Thackray, who is a specialist in seasonal investing patterns. The data explains how stock indexes have performed on an average basis each month between the years of 1985 and 2007.   Consider these facts:   In the past 22 years the TSX composite has shown an average return of -0.5 in August and -1.4 in September. October has shown a 0.5% increase followed by 0.8% in November and a 2.6% increase in December. The seasonal trends are typically on our side for the last quarter of the year.   Our team is diligently preparing to launch our next featured company and we want to give all of our members an edge as we move towards the fourth quarter. We want you to understand our mindset and approach to the market. Patience is something we never lose.   Our team has talked about timing the bottom for weeks. The TSX has fallen 15% since touching a record high on June 18th.   The bottom is quickly approaching.   All the best with your investments,

PINNACLEDIGEST