The Bank of Canada decided to keep interest rates level this week. In its news release the Bank hinted that interest rates are going to stay level noting a “slowing global economic momentum and heightened financial uncertainty”. The Prime rate to which variable rate mortgages and lines of credit are linked to remains at 3 percent.
This column in Fortune magazine warns investors against structured notes, which are also called Market-linked GICs or Principal Protected Notes. The reason: unlike notes sold to institutions, the ones sold to retail investors are complex and overpriced.
With markets in turmoil once again and moving a couple of percentage points up or down seemingly every day, it is worth revisiting the tough lessons imparted by the 2008 market meltdown.
Rob Carrick wrote about the 20 things that baffles him even after more than a decade as a personal finance columnist.
“International diversification doesn’t work anymore” is a common refrain among many investors. Larry Swedroe points to recent research that shows that if one takes a longer perspective than a few years, international diversification delivers on its promise of reducing risk.
Bitten by the gold bug Wealthy Canadian purchased $2,300 worth of precious metals from Scotia Mocatta and is dinged an $80 “Administration Fee”. That’s on top of a shipping fee and a premium over the spot rate. When ScotiaMocatta first launched its online store, I said it was a pricey way to buy bullion. It looks like it still is.
Michael James on Money reminds readers to take advantage of lower trading commissions by householding your accounts.
Money Smarts Blog explains why he has an emergency fund. I like to have one too because cold hard cash helps me sleep like a baby. It could easily earn a few extra points by taking risk but can you put a price tag on peace of mind?
Million Dollar Journey takes a look at the Scotia Momentum Visa Infinite Credit Card and finds the insurance coverage to be skimpy.
The Blunt Bean Counter comments on recent litigation surrounding charity tax schemes. He rightly asks why participants see no red flags when a charity tax scheme takes in a $2,500 “donation” and gives out a receipt for $10,000.
Canadian Financial Stuff has a humorous solution for travellers upset with Air Canada’s new baggage fee.
Preet shared a lecture by David Swensen on managing a portfolio. I’m listening to the lecture as I type and it’s well worth your time.
Today’s Economy Blog’s Kevin Press talks to Larry Swedroe on the potential for contagion in the European debt crisis. Note that the prognostications should have no effect on one’s investment plan (as long as it is well-thought out).
That’s it for this week. Have a great weekend everyone!
