Category Risk, ETF, Benchmark, Inflation, Estate,etc
The Pursuit of Risk Management
In a Nutshell Risk is unavoidable; it is part of life. There are known, unknown and unknowable risks. The best we can hope for is to undertake the pursuit of risk management, in order to minimize the impact to the best of our understanding and abilities. -the probability and financial impact of a risk determines […]
There are risks, but I’ll stay with ETFs for my money: ETF concerns- Has anything changed?
There are risks, but I’ll stay with ETFs for my money: ETF concerns- Has anything changed? In a nutshell Yes there are risks everywhere, but I am sticking with ETFs so long as they are used as they were intended to be. Broad/diversified asset classes (except where accessing in a limited application otherwise inaccessible asset […]
Time Diversification: Stocks are less risky over the long-term??? (Not!)
(Originally posted August 6, 2010) The myth of “time diversification” promises that if you invest (in risky assets) for the long-term you can eliminate risk, i.e. time reduces/eliminates risk. Tell that to somebody who was invested for 20 years with a 100% stock allocation (e.g.S&P500) and was planning to retire in the spring of 2009; […]
Risk perspectives: What is risk? Its measurement, dimensions, modeling (asset classes, risk factors and regimes)
Risk perspectives: What is risk? Its measurement, dimensions, modeling (asset classes, risk factors and regimes) In a nutshell After getting walloped twice in a decade with massive market crashes, suddenly everybody is interested in the subject of risk. You’ll find below a collection of perspectives on risk: what it is and attempts at measuring and […]
Estate planning
Estate Planning You should consider the following as purely a very short introduction to Estate Planning. If you have any assets or dependents you need an estate plan, otherwise you’ll have to rely on the wisdom of legislation and the courts, operating at the speed of government bureaucracies and speed of the courts. I will […]
P/E ratio– it can be confusing and misleading
P/E Ratio – it can be confusing and misleading About three months ago Charlie Minter and Marty Weiner wrote a very succinct article entitled “What’s the Real P/E Ratio? – The bearish view on earnings makes the most sense” , trying to clear up the massive confusion that usually surrounds P/E ratios that are quoted […]
Hedging foreign currency exposure
Hedging of foreign currency exposure: To do or not to do? As the Canadian Dollar hits parity with the U.S. dollar, more investors and newspapers are talking about currency hedging. An example of currency hedging is when a Canadian investor who invested in say the U.S. market is concerned that her U.S. dollar returns will […]
Benchmarks
Benchmarks I was discussing last year’s equity returns with a good friend of mine and he mentioned that his advisor did quite well having returned 14%. Unfortunately, the corresponding index returned 18% over the same period. One of the usually overlooked areas by investors is a valid measure of (fund) manager or advisor performance. And […]
ETFs: past, present and future(?) (A somewhat dated view)
ETFs: past, present and future(?) First let’s start with some background material. There are basically two types of funds: (i) Open End Funds (what we usually think of as mutual funds), units of which can be continuously bought/sold directly from the distributor/manager for the NAV (Net Asset Value), and (ii) Closed End Funds (CEF) units […]
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