Buffett prefers stocks over bonds & gold: Warren Buffett doesn’t often express an opinion on the general level of stock prices. But when he does, he is usually worth listening to. In a recent article in Fortune magazine, Buffett explains why stocks look like a much better bet than bonds or gold over the long term.
Stocks aren’t so cheap: This column, which also appeared in Fortune magazine, offered a counterpoint to Buffett’s argument that stocks are cheap. It says that according to many measures stocks (profits as share of GDP, computing p/e with reported, not operating earnings, Shiller P/E etc.) are not so cheap. Maybe so but compared to alternatives, stock appear to be reasonably valued at these levels.
Help with Retirement Planning: The Society of Actuaries has published a series of 11 articles to help people plan for their retirement. It tackles questions such as when to retire, how to deal with unplanned early retirement, retirement income planning etc. Though the articles are targetted at Americans, many of the concepts discussed also apply to those of us living north of the border.
Avoiding Baggage Fees: During a recent trip, we got dinged with extra fees because the weights exceeded the maximum allowed these days. This column in The New York Times describes the lengths (stuffing the carry on luggage, wearing trenchcoats) travellers go these days to skirt those annoying baggage restrictions.
Around the Blogs
Canadian Couch Potato finds that active funds are trailing index funds even after adjusting for the cost of advice and trading expenses.
Canadian Personal Finance Stuff shows that it is much better for regular commuters to buy a monthly bus pass than paying for each bus ride.
Money Smarts Blog wonders why more Canadians are not taking advantage of the RESP Canada Learning Bond.
Million Dollar Journey explains why he doesn’t use a dividend ETF for his leveraged investments.
Jim Yih breaks down the new rules around CPP in his Retire Happy blog.
My Own Advisor says that for those who are able to stay on budget, credit cards offer many unique advantages over cash.
Thicken My Wallet puts on his lawyer hat and answers some frequently asked questions on severance.
The Blunt Bean Counter offers useful tips for mitigating exposure to 5 popular CRA audit target areas.
Can you smell the fear in the mortgage industry? Where Does All My Money Go? scoops the news that many lenders are quietly tightening mortgage rules.
With the RRSP deadline fast approaching, Larry MacDonald has seven suggestions for investing your contributions.