If you are a mutual fund investor, you probably noticed some good news in the mail recently. Yes, your semi-annual statements should now be in your hand. Make sure you open the envelope. The results over the past six months have been impressive.

Not many people have caught on to the fact that stock markets around the world have rebounded strongly this year. Canada's benchmark S&P/TSX composite index gained 1.8% in June and 10.1% in the second quarter. In the US the news was even better. The Standard & Poor's 500-stock index, rose 3% in June and 14.9% in the three months to June 30. This was the biggest quarterly gain in more than four years. In fact, the New York Times has even gone so far as to say “There is no denying it: the bull is back” in its June 22nd, 2003 edition.

Unfortunately, this message seems to be largely ignored north of the 49th parallel. According to the Investment Funds Institute of Canada, the group representing Canada’s mutual fund companies, Canadians have yanked $600 million out of their mutual funds in the month of June. So far in 2003, the mutual fund industry has only seen one month where Canadians have added more money than they took out of their accounts.

In comparison, during the week of June 15th, Americans added $3.3 billion, net of money they withdrew, into domestic stock mutual funds. According to data from Banc of America Securities, this marked the 14th consecutive week Americans have added to their stock based mutual funds.

Is there some news Canadians know about, that Americans don’t? Just as markets are starting to recover, Canadians seem to be exiting while Americans seem to be crowding in. Perhaps the more conservative investment nature that Canadians are known for, is making them give up on the market, just as Americans are spying an opportunity. Don’t wait for old news. Take a long term approach, speak to your trusted advisor and don’t miss the next upward move in stocks.

This is a monthly article on financial planning. Call or write to Rick Sutherland CLU, CFP, FDS, R.F.P., of Fundex Investments with your topics of interest at 798-2421 or E-mail at rick@invested-interest.ca.