Investors bullish on Canadian stocks seem to be a dying breed. The S&P/TSX composite has declined more than 12 per cent since its near-term high in mid-April and the summer pullback has brought down valuations in a number of sectors to the point where some stocks such as the banks look like outright bargains compared to historical averages. Corrections tend to attract bargain hunters, but few buyers seem willing to…
Most investors would likely agree that 2014 has been an unusual year for stock market activity. A lot of investors got whipsawed and plenty of mistakes were made. There was a ton of confusion and, more recently, panic. It seems, at least to us sitting independently on the sidelines, that a lot of Canadian investors simply forgot the basics. With that in mind, here are five simple investment rules to…
It is not uncommon for individuals who have saved for some time to have multiple investment accounts. Often, they will have one in their own name, one in a holding company’s name, and at least one more registered account such as an RRSP, RESP or TFSA. The rules differ depending on age and other factors, but the key shared element among registered accounts (so long as money is not withdrawn…
The secrets to building wealth aren’t hidden behind locked doors in the realm of the rich. Plenty of wealthy people make disastrous financial mistakes. But those who succeed understand how to make their money work for them as well as how to take calculated risks. The current low-rate environment of easy money policies means that playing it safe with investments is not an option for those who want to increase…
One of the great debates in Canada, from the local Tim Hortons in B.C. to the 5 a.m. hockey practice in P.E.I., is whether or not your house should be viewed as an investment. Proponents on both sides defend their views armed with myriad statistics and both can make good arguments. But they both seem to have lost sight of the real issue: It is not whether housing should be…
Don’t put all your eggs in one basket. It’s a maxim we have all heard since childhood. The basic premise is that if you must figuratively transport a number of eggs from one place to another, placing all of them in the same basket will expose you to a total loss should the basket fall en route. We hear this admonition in the world of investing all the time as…
Earlier this year we penned a couple of columns that, more or less, beat up the mutual fund industry. We will add one more now, with a bit of an extension to highlight what’s wrong with the investment industry in general as well as mutual funds. Then we’ll give our friends and former colleagues in the business a break, but until then here are five more things we don’t like…
People are always looking for the best time to buy when investing their money. Ultimately, no one wants to pay too much for an investment that they know will fluctuate in value from one day to the next. It doesn’t matter how smart or experienced someone may be, no one can tell you with any degree of certainty where interest rates will be from one day to the next and,…
The ongoing turmoil in world markets has made for a herky-jerky ride this year. What did you learn? While most professional money managers expect stomach-churning volatility to continue, there’s no reason why you can’t still position your portfolio for safety, income or growth. Here are some mistakes to avoid: 1. Staying Out of the Market. Sure, the market this year was crazier than selling snowballs to Inuits. But by staying…