By: Anthony S. Layton
Passive investing is good for both clients and advisors.
Beating the stock market is a challenge that motivates many investors and their advisors to follow an aggressive active-management strategy. But as historical performance statistics have forever demonstrated, few active money managers are actually able to outperform the market.
Indeed, fewer than 9% of actively managed Canadian equity mutual funds outpaced the S&P/
TSX Composite Index during the five years ended 2007 on a compound annual return.
Source: Advisor Edge, July 2008
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By: Andrew Baechler
We’re all familiar with the saying: hindsight is 20/20. Nowhere is this more applicable than after you’ve lost money.
Recently many investment portfolios have probably been harmed by the bursting of the U.S. housing bubble. With the benefit of hindsight, we realise it should have been obvious that U.S. housing prices had reached ridiculous levels. It is clear that it wasn’t a boom — but a bubble.
Source: Ontario Dentist
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By: Andrew Baechler
An interesting and increasingly popular area of investment research is the subject of neuroeconomics, which combines the study of economics, neuroscience and psychology to better understand how we evaluate choices, categorize risks vs. rewards, and calculate probabilities. Most economic theories and models assume investors are rational decision makers who act in their own best interests. But, in reality, our investment brain often drives us to do things that are quite illogical, but make perfect emotional sense.
Source: PWL Capital
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By: Andrew Baechler
What are the different types of fees associated with bonds and mutual funds? It is definitely a case of “buyer beware”, as financial expert Andrew Baechler explains.
Source: Ontario Dentist
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By: PWL Capital Research Group
The ongoing US mortgage crisis has developed into a banking crisis, which has, in turn, led to the stock market decline we have experienced in the last few weeks. Several analysts and commentators think we’re heading into a recession and an equity bear market. Regarding the recession, they may have it right.
Source: PWL Capital
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By: Nancy Graham, CA, CFP, TEP
There are many facets to a power of attorney. This paper deals exclusively with risk management where investment capital is involved. The premise is a situation where the individual, appointed through a power of attorney document, has been given full authority to manage the property of an incapacitated beneficiary.