Canadian investors are increasingly looking at alternative assets like gold and bitcoin as prices rise. And, with their unique characteristics, these alternative investments offer unique advantages for some. But, most investors should still avoid these types of investments. This post will give investors a unique perspective on investments like gold and bitcoin and explain how they may be used...
How often should investors review their portfolio? And, when does it become too much or too little? Researchers have discovered that acting on a schedule with surprisingly long intervals is more sensible, even when transaction costs are low. In other words, excessively fussing over your portfolio is counterproductive, regardless of its affordability. Before we begin, take a break from reading...
As the thrill of quick gains often grabs headlines, passive investing emerges as the silent giant, embodying the virtue of patience in a race paced by speculation. It's the strategy that champions the adage "slow and steady wins the race," turning a deaf ear to the siren calls of market timing and rapid trading. Surprisingly, passive investing often beats the...
Portfolio rebalancing is the process of realigning the weightings of a portfolio to maintain a desired allocation. Over time, as various investments perform differently, a portfolio can drift away from its initial target allocation. So, to correct this, portfolio rebalancing involves selling a portfolio’s best performing investments and using those proceeds to purchase more of a portfolio’s worst performing...
A Core-Satellite portfolio approach breaks down an investor's portfolio into two main components: the "core" index funds and the "satellite” active components. The core typically consists of a broad-based market index or a diversified fund that seeks to mimic the returns of the whole market or a benchmark. This core is expected to provide diversification and represents a large chunk of...
In the ever-evolving world of investment strategies, it’s easy to get lost amidst the myriad of complex theories and tactics touted by experts. Yet, time and again, history has shown that there’s profound strength in foundational principles. At the heart of these principles lies the concept of buy-and-hold investing. This approach not only champions the virtue of patience but...
Ontario’s housing market is one of the world’s most exciting, and this has important implications for local investors. Whether its soaring construction costs or unexpected interest rate hikes by the Bank of Canada. As an investor, its imperative to put market drivers into context. This post delves into the recent developments in the Ontario housing market in summer 2023 and...
Investing can be complicated, and our emotions often make it even more challenging. Investing bias will alter our investment decisions, usually for the worse. So, in this post we’ll discuss six practical ways to reduce investing biases, making your investing journey clearer, calmer, and more successful. Before we begin, let’s put your financial knowledge to the test with our free financial...
Public company ownership is represented by shareholders who acquire shares actively traded on recognized stock exchanges. The intricate dynamics of ownership in public companies, which can often be multilayered and complex, offer a practical subject for potential investors and business enthusiasts alike. Before we begin, let’s put your financial knowledge to the test. Try out our free financial literacy quiz and see...
In the vast universe of investing, different strategies cater to different types of investors. This post delves into contrasting investing philosophies, shedding light on the approach of a legendary investor, Warren Buffett, and juxtaposing it with the typical strategies employed by pension funds. Before we begin, let’s put your financial knowledge to the test. Try out our free financial literacy quiz and...
