- There is much to be said for simplicity in investing. Tom Bradley writes in his Steady Hand blog that investors should stick to the basics and avoid most new-fangled financial products.
- Larry MacDonald reminds us in his Investment Ideas blog that t’is the season for rebalancing your portfolio. While you are at it, don’t forget that your personal life may also need some rebalancing.
- You should pay close attention to the fees you are paying for your investments. While future returns are unpredictable, it is guaranteed that the fees you pay will reduce your returns. Growth in Value recommends that we read an article in MoneySense magazine that reminds us that fees matter.
- Professional money managers are optimistic on equities (Canadian, US and EAFE) and Canadian bonds and pessimistic about Canadian real estate, corporate bonds, oil and currency writes James Daw in The Toronto Star (As an aside, I think the new design looks much nicer than the old one). Just don’t put too much stock in predictions about asset class returns, especially over such a short term.
- Jon Chevreau of The National Post wonders if mutual funds are becoming obsolete as more investors start to question their high fee structure. While I would like to think that champions of low-cost investing are having a big effect, the reality is that the question “Where are the Customers Yachts?” was first asked in the 1930s and is still valid today.
- The Globe and Mail’s Rob Carrick mentions four mutual funds that in his opinion are worth a look. I firmly believe that past performance is no guarantee of future returns and I don’t even consider a mutual fund except in unusual situations.
- It will soon be time for the next budget and tax expert Tim Cestnick assigns odds on what potential tax changes the Finance Minister would make in his second budget. I think that the upcoming budget would be packed with a million small tax cuts given that we might be heading to the polls soon after.
