Life is short so we need to make the most of it. As an advisor, my role is to be a good steward of capital. If I could help clients set aside some of the stress and minimize the emotional turmoil and the accompanying mistakes brought on by market timing, would you give that a try?
The numbers prove time and time again, while advisors and/or investors might enjoy the thrill and challenge of trying to beat the markets, fewer than 9% of active managers in Canada manage to rise above the market average, and doing so on a regular basis – year after year – is even less likely.
In my recent article for Advisor’s Edge, I look at passive investing and why it’s good for both advisors and investors. It’s the philosophy we use here at PWL Capital and we see that investors get better results without the angst and uncertainty characteristic of the active alternative.
If your advisor can build a long-term plan that would see returns regularly rank in the top 10 percentile, wouldn’t you think that was worth a closer look?
If you can’t beat ‘em, then joining sounds like the way to go. Have a look at my article where I’ve laid out my case for passive investing being good for both advisors and investors.
Of course you’re welcome to comment and let me know what you think. Click here to read the article
Here are my thoughts on the Markets for June 2008.
• After aggressively cutting interest rates in the first half of the year, the U.S.
Federal Reserve and the Bank of Canada held key interest rates steady in June,
citing inflation control as their primary concern in the coming months.
Government bond prices dropped early in the month in reaction to this
• Corporate bonds have also declined in price in response to further expected
writedowns by the major banks in Canada and the U.S.
• The Canadian stock market declined by 1.4% despite commodity prices
hitting all time highs, the S&P500 dropped by 6.0% and the MSCI EAFE
dropped by 5.7%.
• The Canadian dollar remained in the range in which it has been trading all
year, between $0.97 USD and $1.03 USD.
Market Statistics (PDF)
Statistiques de marché (PDF)
The latest statistics are regularly available in the Broadcast Centre, Market Statistics and you'll find my comments archived in my Market Statistics & Commentary page.