What is the difference between a risky portfolio and a dangerous one? In this month’s Economic Pulse, Ray Kerzerho discusses the right way to capture the extra returns that come from taking more risk, without subjecting your savings to the possibility of a permanent loss, the likes of which Enron and RIM investors know all too well.
La minute économique de ce mois est maintenant en ligne.
As an integral part of our portfolios, we have used Dimensional Funds for almost a decade to achieve proper diversification. In a recent Globe and Mail article, Rob Carrick writes about the strengths of Dimensional Funds and how their academic foundation and discipline have earned them a growing share of the Canadian market.
Enjoy the read,
Tony & Peter
Despite all the negative news in the last few months, equity markets have enjoyed a strong upswing since the end of May. The major developed equity markets around the world are all positive so far this year except Spain. Germany is leading the pack, up 21% year to date (+13% in Canadian dollars) and the US is up a strong 13% year to date (+9% in Canadian dollars).
Though the recent results of the Quebec election have created concern about the future of Quebec’s economy, there is little doubt that another election will be forthcoming shortly. We do not see this as a cause for concern with respect to PWL portfolios, given the massive diversification across Canadian, US and International equity markets.
The attached article by our friend, Dan Bortolloti, “Another Weak Criticism of Indexing” is a good response to a poorly argued attack on indexing and market based investing that appeared in the Globe and Mail a few weeks ago.