Retirement is when having a good time is your only job.~ Anonymous Every Year, Fidelity Investments publishes a detailed report to help Canadians think about retirement. Do you want to know: Which particular factors make Canadians feel more well-prepared? How can pre-retirees and retirees feel more confident and optimistic? We are glad to share this...Read More
How much should we trust stock market predictions? One particular memory stands out. The most common complaint in 2000? I sold my Nortel too soon! The most common complaint in 2001: I wish I sold my Nortel sooner! A Case Study Following predictions can be very problematic. Dr. Michael Burry became famous for predicting the eventual 2008...Read More
Inflation changes everything. Investment portfolios can be affected by inflation in three crucial ways: 1) Portfolio Correlations 2) Real Returns 3) Sector Outlooks It is important to have a game plan for investing during periods of inflation. Portfolio Correlations Portfolio diversification is weakened (gold line) if stocks and bonds move together. Inflation can cause stocks and...Read More
“Cessation of work is not accompanied by cessation of expenses.” We don’t know what stock markets will do when we plan to retire. In his article, The 4 Year Rule for Retirement Spending, Ben Carlson explains an interesting strategy for investors approaching retirement: The Retirement Buffer Strategy: Setting aside funds to pay the bills for a...Read More
Nothing goes up forever. Likewise, the stock market rhythm of boom and bust creates a tendency for long-term breaks after many years of gains. When we step back and examine a stock market chart, we may observe multi-year periods of both strong gains and stagnation: As you know, we have recently experienced many years of...Read More
We could soon experience the longest bull market in history. The current uptrend in the S&P500 is close to surpassing the previous record for length of time without a prolonged downturn. These two bull markets periods do not include the technology crash of 2000-2002, or the financial crisis of 2007-2008: Avoiding those two crashes would...Read More
“The simpler it is, the more I like it.” ~ Peter Lynch How do you feel when you see a delivery truck? It probably depends on your perspective. If you are not expecting a delivery, you may not even notice it. If you are expecting a delivery, you will likely feel excited. But if you own...Read More
“The best investors do not target return; they focus first on risk…” ~Seth Klarman How do the best investors decide when and where to invest today based upon headlines that swing so quickly between despair and euphoria? Well, they actually don’t decide. The best investors hire fund managers so they can enjoy their lives! They have learned...Read More
“For the times, they are a-changin'” ~ Bob Dylan Do you ever wonder what are my money managers doing for me? Revisiting the New Playbook, by Robert Taylor at Canoe Financial, provides insight into how a fund manager thinks and acts in financial markets. This great article illustrates the benefits of active management while addressing the...Read More
“The most important lessons learned in investing are learned in the tough times. ~Howard Marks Bear markets are inevitable. If you are eighty-five, you have seen 14 and if you are forty, you have seen 5. This chart tells how many bear markets occurred in your lifetime: This next chart highlights some historical declines...Read More
