According to a widely reported study released by a Canadian investment bank earlier this year, Canadians are sitting on $75 billion in excess savings “Cash”. That’s a lot of money earning interest at today’s low rates. Fund managers even have a name for this phenomenon. They call it “cash drag” — too much cash can literally drag down performance over […]
Read more ›MUTUAL FUND STRATEGIES In the context of mutual fund investing, Larry Kleinmintz says divergence refers to investments that move independently of one another. It’s important because too much correlation can hamper long-term growth potential. If your mutual funds are concentrated in a particular sector or asset class, it can leave you vulnerable to a downturn in that area. There are […]
Read more ›MANAGE DEBT We all have debt at different points in our lives. When we were studying, many of us took out student loans. We use loans to buy cars, mortgages to buy houses, credit cards for convenience and lines of credit to bridge cash flow gaps. With so many different debts, it’s easy to lose track of the costs to […]
Read more ›We all have biases, and some can affect investment decisions and have a negative impact on returns. However, being aware of your investment biases can help you avoid them. Investment home bias Familiarity keeps many investors’ portfolios concentrated in Canada. This restricts opportunities, diversification and growth potential. While it’s true that Canada has many strong businesses, they represent a small […]
Read more ›MUTUAL FUNDS The tide may be turning for investors in Europe. After several years of challenging economic news, there’s a sense of renewed optimism. A survey of investment managers released in September 20151 found that nearly half (49%) of respondents believe European equities are undervalued — or trading at attractive prices. Economies in the Eurozone are benefiting from the European […]
Read more ›
FOCUS ON INVESTING: Retirement Income During your portfolio-building years, you are likely to have a bias to equities. With a long time horizon and regular additions of capital, you have an opportunity to maximize growth potential. As you get closer to retirement, however, it’s natural to begin tilting your portfolio away from equities and towards fixed income. Not only will […]
Read more ›With the recent volatility in the equity markets, some investors have likened investing funds to walking a tightrope between choppy equity funds and the ongoing lethargy of bond and income funds. You might even think of it as a “Goldilocks” environment: equity funds are too hot for many investors’ taste, while fixed-income funds are too cold. So what’s the mutual […]
Read more ›TAX-FREE ESTATE PLANNING Most of us know about the importance of designating qualified beneficiaries for our Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs). But what about your Tax-Free Savings Account (TFSA)? You can – and should – take steps to protect those assets in much the same way as your other registered plans. The first thing […]
Read more ›The world is in motion, physically, and economically, and politically. Here at home, we’ve just elected a new prime minister, and the U.S. will be going through its election process come November. As if to further affirm that change is afoot, growth in the investment markets seems to be shifting away from the developing world and back toward the more […]
Read more ›FOCUS ON MUTUAL FUNDS Is getting more exercise one of your New Year’s Resolutions? It’s a perennial favourite, and a good idea. While you’re at it, here are three exercises to help ensure your mutual fund portfolio is in top shape. Balance. The key to good physical fitness is balance. The same is true for your fiscal fitness. The New […]
Read more ›