Or as Lisa Abramowica and Rani Molla put it in their April 5 Bloomberg Gadfly piece, “Dude, Where’s My Yield?” The picture tells the story – 10 year government bond yields are lower than 2% in many developed countries that have half-decent sovereign credit ratings. Japan and Switzerland’s 10-year bonds have negative yield! To search for […]
It’s hard to feel good looking at media commentary on the performance of stocks in 2015 and 2016 – here’s a sample: Canada’s year of ‘serial disappointments’ leave investors reeling – Financial Post 5 reasons why the market meltdown matters to all Canadians – Global News Sell everything ahead of stock market crash, say RBS economists […]
Earlier this week we wrote about the home bias many Canadians have when it comes to their investments (see Only two resolutions for Canadian investors in 2016). This home bias turned against investors in 2015 as the underperformance of the energy sector and the loonie teamed up for a double whammy hit to investors’ portfolios. […]
We have heard so many suggested new years resolutions over the last couple of weeks but believe it’s worth piling on two more for Canadian investors. We hope not but suspect we’ll be highlighting the same resolutions for years to come. Chalten has been open for business for less than a year but already we have seen some very concerning […]
Canadians exhibit far too much home bias with their investments – while some home bias is normal and maybe useful if it helps reduce psychological barriers to investing at all, it can be particularly dangerous in Canada not only because of economic and stock market industry concentration but also the high proportion of total market capitalization […]
The core principle of an evidence-based approach is that risk and return are related. The remaining principles of the evidence based approach flow from this core principle. In the second installment in our series on Evidence-Based Investing we presented some of the evidence which demonstrates that a buy and hold “passive” investment strategy will outperform […]
In July, 2014, Vanguard Canada published a report titled Global equities: Balancing home bias and diversification – A Canadian investor’s perspective. Using data from the IMF, Vanguard showed that Canadians on average allocate almost 60% of their equity holdings to Canadian stocks, a significant overweight considering that Canadian stocks represent less than 4% of the global […]