Featured Articles
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September 4, 2010 Market Outlook
06 September 2010 6:00 AM | No CommentsInterest rates have remained essentially unchanged over the past week. Economic indicators are appearing weaker than previously, so the likelihood of the Bank of Canada raising rates is much lower. Bonds have fallen back while stocks have surged ahead. Bonds are at the same level...
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Canfor Pulp CFX.UN
03 September 2010 6:00 AM | No CommentsThe Facts (as of August 25, 2010) Unit price: $13.85. Book value per unit: $15.35. Market cap: $492 million (medium). Distribution: $0.20 per month or $2.40 per year. Yield: 17.3%. P/E: 9.2x. Debt/equity ratio: 0.21. Payout ratio: 67%. The Story Artis REIT is focused on...
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Investment Risk
01 September 2010 6:00 AM | 1 CommentOver the next few weeks, I’m going to write about robustness. This is an idea that addresses risk in any type of planning. I have found that risk is particularly poorly addressed in market-related thinking. Investment plans discuss risk, but fail to control it. Particularly...
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Archive for December, 2009
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How share ownership should work
Posted on December 30, 2009 | No CommentsOne investment choice, among many options, is share ownership. With the advent of mutual funds and ETFs, some investors may not understand what share ownership represents. In order to explain it, let’s explore a simple example. Let’s imagine a young person who starts a business.... -
Book mention: Shell Shocked
Posted on December 23, 2009 | No CommentsI can’t call it a book review, because I didn’t read Shell Shocked: How Canadians Can Invest After The Collapse, by John Stephenson. I only got part way through the introduction before I put it down in disgust. I’ll explain what I found objectionable about... -
Working effectively with an advisor
Posted on December 16, 2009 | 1 CommentNot everyone needs an advisor. If you know how much to put toward debt repayment, how much you need to save, and how to invest it, you can go it alone. But if you have no interest in doing the planning and the math, or... -
Great Advice
Posted on December 9, 2009 | No CommentsI’ve gotten a lot of advice in my time. Sometimes it’s irritating, but it’s always a sign that people care. As soon as people give up on you, they stop trying to help you improve. However, there is more than one way to give advice.... -
Risk management: What’s the worst that could happen?
Posted on December 2, 2009 | No CommentsRisk management means thinking of the worst that could happen, then deciding how to address the risk. Some risks are best avoided, some should be reduced, some should be insured and some should be accepted. Your response depends entirely on your personality. Some risks that are suitable to being insured are the risk or premature death and disability. You can pay a premium and, if you suffer loss, you can receive a sum of money. This is useful if you have family that depends on you. Planning can help in the case of a premature death or a divorce, in order that your wishes are carried out. One risk that you would do well to accept is the risk of a drop in the market value of your investments.