Category 2006-2007

blog30dec2007

Hot Off the Web Even though the past week was a slow one due to the holiday season, there is quite a lot of meaty stuff that you’ll find it interesting to dig into. Happy New Year to all of you! Jonathan Clements in WSJ’s “Bring fresh eyes to your portfolio in 2008” suggests that […]

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blog23dec2007

Hot Off the Web Eleanor Laise in WSJ’s “Index fund tortoises are long-term winners” quotes recent research data showing that not only are index fund investors paying lower management fees than active fund investors, but they also underperform the funds they hold by only 0.47% vs. 1.7% annually for investors in actively managed funds. The […]

blog16dec2007

Hot Off the Web In “How to beat the next bubble” Jonathan Clements of the WSJ says that innovation and easy money has been the root of the last two bubbles (internet and real estate). Don’t fall into the next one by avoiding ‘mental mistakes’: assuming rising investments will keep rising, buying after assets already […]

blog09dec2007

Hot Off the Web Rob Arnott in Financial Times’ ”Stellar earnings not a certainty” indicated that while many point to P/E ratios that have now fallen to more historically average levels from the obscene heights reached in 2000, but the earnings on which these P/Es are based are at historical highs. He also points to […]

blog02dec2007

Hot Off the Web WSJ’s Jonathan Clements in “Invest it all in stocks…no way” re-emphasises that 100% stock asset allocation is not a good idea, as most investors (especially those near or in retirement) wouldn’t be able to deal with the resulting volatility; 20-40% drop in asset value is possible, and many countries have histories […]

blog25nov2007

Hot Off the Web In WSJ’s “Trade oil, gold, rice and more in one fund”  Eleanor Laise discusses a new ETN, Total Return Elements RJI, tracking commodities based on Rogers International Commodity Index. We have covered ETNs earlier (they are essentially a bond reflecting a promise by the issuer to deliver the index after (0.75%/year) […]

blog18nov2007

Hot Off the Web Rob Carrick questions the advantages of ETFs in down markets, when active fund managers may have the advantage to move into cash and or reduce heavy weightings in overpriced stocks in “Funds more nimble than ETFs” . He identifies 20 funds that had significantly better peak (September 200)-to-peak (October 2007) returns […]

blog11nov2007

Hot Off the Web In “’Finsurance’ has room to improve” Financial Post’s Chevreau discusses Guaranteed Minimum Withdrawal Benefit (GMWB) products from Manulife’s Income Plus, Sun Life’s Sun Wise Elite Plus and Desjardin’s Helios. He quotes various advisors whose perspectives are diametrically opposite on these products. Some like them because they provide “growth potential, tax efficiency…and […]

blog04nov2007

Hot Off the Web Jonathan Clements has a must read article in the WSJ for the do it yourself-er entitled “Make it to the end with money to spare” that covers just about all the mechanisms for decummulating your assets in retirement. His list covers: (1) cash-equivalents over the next 3-5 years and perhaps target-date […]

blog28oct2007

Hot Off the Web In “Minimizing the pain of withdrawal”  the Financial Post’s Chevreau writes about the complicated (usually means expensive) new products becoming available in Canada like Income Plus (Manu Life), a variable annuity with downside protection and participation in the stock market returns; also TSWP (Fidelity), TFLEX (AIM Trimark) and Series T (Franklin), […]