Gold prices have been trending higher. And, after surging to new all-time highs, investors are scrambling for explanations behind gold's gravity-defying rally. But, is gold a good investment? And, is gold a suitable investment for the long-term, or just during certain circumstances? Is now a good time to invest in gold? Let's delve into the nature of this investment and...
The call for environmental sustainability among investors is growing louder. So, sustainable finance is influencing various sectors of the economy and having serious impacts for investors. Among these, Canadian banks are standing at a crossroads. They are under increasing pressure from shareholders and employees to divest from oil and gas financing. While the goal is to align with sustainable development...
How should investors be evaluating private credit? Recent research is casting doubt on the touted benefits. A new study by the National Bureau of Economic Research is suggesting that, when considering the additional risks and fees, private credit investments may not offer the alpha. In other words, excess returns that many investors anticipate have not materialized. This finding prompts...
“Let your profits run, and cut your losses”. Is a phrase coined by economist David Ricardo encouraging investors to resist the urge to sell profitable positions too early. The adage has roots in simple math. A losing position can only fall 100%, whereas a winning one can potentially gain infinitely. So, how can this timeless wisdom help investors today?...
Investing in Private credit provides a tantalizing opportunity for wealthy investors. Drawn by the allure of potentially higher returns with less risk compared to traditional public market bonds. However, beneath the surface of these enticing prospects lie significant private credit risks that warrant a closer examination. This blog post aims to shed light on the realities of private credit...
The rise of indexing has crossed a new threshold. Passive strategies now make up more than 50% of all investment assets. Recent reports show we’ve crossed the Rubicon of passive vs active investing. Indexing has won! The reasons are clear: indexing outperforms active management most of the time. And, its much easier for investors to achieve better returns...
The evolution from index to factor-based investing has become increasingly nuanced. Investors are recognizing a deeper understanding of market dynamics and investor behavior. Initially, the widespread adoption of index funds in the 1990s was largely attributed to the Efficient Market Hypothesis. This theory posits the stock market's efficiency made it rare for active managers to consistently outperform passive benchmarks. However,...
The best investors are deliberate and consistent. And, they don’t let their emotions get in the way. Instead, they create consistent investing habits. Day after day, week after week, year after year; the most consistent and disciplined investors succeed. While fickle, emotional, and impulsive investors flounder. So, how can investors encourage consistency in their investing process? This blog post will share...
In the serene landscapes of rural life, two distinct types of farmers thrive - the chicken farmer and the egg farmer. While both operate farms, they adopt vastly different strategies. Mirroring the diverse approaches in the world of portfolio investing. This post explores these strategies and draws parallels with the investment philosophy of Warren Buffett, while describing why a time-tested...
Does investing in weapons sound like a socially responsible investment strategy? And, do weapons companies fit within an ESG investment portfolio? Many ESG investors would say, No! But, many ESG investors are also inadvertently investing in weapons companies through so-called ESG funds. So, this post will explain how weapons companies can find themselves in many ESG portfolios, and what investors...
