Trouble with Experts: CBC TV featured a documentary on how good expert predictions, especially those stated confidently in the mainstream media are (hint: not very). Unfortunately, the show did not spend much time on research findings that experts who make probabilistic and nuanced forecasts are worth listening to but the show is still worth your time.
Do not make illegal downloads: Let’s set aside the moral reasons for a minute. Michael Geist writes in The Star how movie studios are taking Canadians making illegal downloads to court and under current law statutory damages could run as high as $20,000. That kind of money can pay for a lot of DVD/Blu-Ray movie discs.
Buying the Dips: Jason Zweig writes in The Wall Street Journal that the exhortation to “buy on the dips” sounds good in theory but doesn’t stand up to analysis.
Around the blogs
Million Dollar Journey takes a look at the new Capital One Cash Back Credit Cards.
Michael James on Money explains why investing in an index is like picking the brains of the best investors out there. David Chilton explains index investing in similar terms in The Wealthy Barber Returns.
Money Smarts Blog will be travelling to the US and researched ways to get a little bit less ripped off on cell phone data roaming charges.
Blunt Bean Counter offered a list of 20 things about income taxes that baffles him. I have one item on my list: why is the child care deduction capped at $7,000 per child? And why isn’t it even adjusted for inflation?
Canadian Financial Stuff is a big fan of paying for everything with cash but points out that, in all fairness, an all-cash approach isn’t without its flaws either.
Jim Yih pointed out that compound interest is a powerful force in growing your wealth. Keep in mind though that fees, expenses, turnover, taxes and inflation are forever working against compounding.
My Own Advisor sucked up to his wife with a post on financial lessons he learned from her. Just kidding, Mark!
The Wealthy Canadian, on the other hand, sucked up to Kevin O’Leary. Enough said!
Canadian Couch Potato reviews The Smartest Portfolio You’ll Ever Own and includes a model portfolio built with ETFs from the book.
Canadian Financial DIY slams a Investment Funds Institute of Canada report for employing questionable tactics in its bid to call all ETFs “expensive”.
