The choice between bond ETFs and mutual funds Bond yields have dropped recently, and as a result, bond values have risen significantly. For example, the passive iShares Canadian Universe Bond Index ETF has risen 3.3% since the beginning of the year, and is up 4.9%...
Why geographic diversification still matters Given all the volatility that’s been occurring in world markets after the Brexit vote, I’ve been asked whether it would be better to stick to Canadian stocks? After all, Canada is economically and politically stable, and...
A short grad course in investing for the future New grads fresh out of university may have received some cash gifts from proud parents and relatives. Some may be tempted to blow it on partying and living the high life. Others may seek the excitement and potential...
Acting on the media frenzy is a big mistake Should I sell my stocks and ETFs now? Is a major financial crash (like 2008) in the works? Not necessarily. First of all, don’t panic! Remember that markets are creatures of herd mentality, and are driven largely by...
All about risk and robo-advisors Novice investors looking for better returns than low-interest savings accounts have an embarrassment of riches when it comes to investment choices – ETFs, mutual funds, stocks, and bonds. But where do you begin? Here are a few tips...
Low, low rates mean you automatically lose Are you sitting on a large chunk of cash in a high-interest bank account? Maybe you thought it would be “safe” because you’re nervous about stocks and bonds. Plus, there’s deposit insurance, and it’s liquid. Well, you’re...
Use it as a safe haven if you must, but never speculate Over the past month or so, the price of gold has climbed steadily, gaining nearly US$150 per ounce, to trade over US$1,270 per ounce at the beginning of March. This is the biggest sustained gain in the past 12...
In a word, yes One of the factors to take into account when deciding on a target rate of return for your investments is the rate of inflation. But according to Statistics Canada, inflation was actually down -0.5% in December. With inflation rates low or declining...
How to avoid money-losing moves in gyrating markets During periods when sentiment sours and markets sell off suddenly and steeply, as has happened recently, financial advisors’ phones never stop ringing, with clients asking whether they should sell their funds or...
The danger of under-diversifying your portfolio How can you tell if your portfolio is properly diversified? A prospective client asked me to review an investment portfolio of several hundred thousand dollars consisting of two big holdings: iShares Canadian Growth...
Should you max out the $10,000 contribution for 2015? Tax-Free Savings Accounts (TFSAs) sound simple. But they’re not. There’s an array of rules and regulations involved. One of the most common questions I’m asked is whether you would lose this year’s contribution...
How to get a fix on portfolio holdings before it’s too late! Do-it-yourself investors who have a number of different investment accounts could be courting financial trouble. Unless you have a complete picture of how all your assets are allocated, your investment...