Investment Strategy

Passive vs. Active Investing: yet another take

Posted by on November 8, 2011 in Investment Strategy

I always find the passive vs. active investing debate a curious one. The tone of the debate by certain advocates on both sides mirrors the dogmatic approach of our political discourse; mainly, my way is absolutely the right way to go and if you want to want to invest another way I am going to [...]

What is the barbell investing strategy?

Posted by on March 8, 2011 in Investment Strategy

We live in a world marked by a great deal of volatility and uncertainty. Record high corporate profits sit side by side with predictions of an economic downturn upon the end of quantitative easing (fancy spin for printing money until we drop) in June of this year.  Some would argue, most notably Nassim Nicholas Taleb, [...]

Why not cash?

Posted by on November 25, 2010 in Investment Strategy

A fee-only financial planner once said to me that the one strategy the financial industry rarely supports is paying down debt. No one makes money off of it.  In a semi-related observation, investing based on how economists, especially those who are employed by political masters, wants us to invest sometimes does not end well. Before [...]

Dividend stock or corporate bonds?

Posted by on November 23, 2010 in Dividends, Investment Strategy

Since the credit crisis, investors have shifted their asset allocations from equities to fixed income. Over $600 billion have been invested in bond funds in the United States since 2008. It is accepted as investing wisdom that most investors should have a mixture of fixed income and equities in their portfolio. However, the large scale [...]

Asset allocation of professional managers

Posted by on November 16, 2010 in Investment Strategy

The Harvard and Yale endowment funds manage literally billions of dollars of funds each. The 10 year return of 7% and 8.9% for Harvard and Yale respectively are respectable considering a 60/40 equity/bond split would have yielded an investor 2% over the same period of time (equity split is in S & P 500). With [...]

How short is too short in investing?

Posted by on August 4, 2010 in Investment Strategy

Canadian Couch Potato recently responded to a reader’s comment that her investing strategy based on purchasing exchange traded funds did not seem to be working. There are some very insightful comments from readers but what struck me was the reader was already questioning her investment strategy a mere 3 years after starting it which is [...]

How to hold yourself accountable to financial goals

Posted by on June 14, 2010 in Investment Strategy

Despite the myriad of strategies and products on the market, one of the fundamental issues on why some investors do not reach their financial goals is lack of personal accountability.  As Michael James recently commented, the forces of inertia and fear of change can cripple an investor even when such an investor knows better than [...]

Which stocks outperform in a recovery?

Posted by on August 20, 2009 in Dividends, Investment Products, Investment Strategy

File this post under “obscure personal finance reading”  or “why dividend stocks continue to be your best bet.” A Swedish undergraduate research paper written earlier this year posed the question of what quantitative measures an investor should look at in determining which stocks will outperform the market in the 12 months after the end of [...]

Is gold a good long-term investment?

Posted by on July 23, 2009 in Investment Products, Investment Strategy

The price of gold and its perception as an investment by bloggers seems to have an inverse relationship. As the price of gold rises, bloggers seem less enthusiastic about gold as an investment. Why such a negative attitude about something going up in price? Gold, unlike silver or copper, has no industrial usage. In fact, [...]

ETFs: how much is too much?

Posted by on July 6, 2009 in Investment Strategy

As I commented before, the exchange traded fund (ETF) industry is replicating the development of the mutual fund industry: fee creep, new players and increasingly exotic products. If history does repeat itself, and the industry engages in similar sales and marketing strategies as mutual funds, an uneducated investor may merely be going back to the [...]