Cameron Passmore CIM, FMA, FCSI

Portfolio Manager

Benjamin Felix MBA, CFA, CFP

Associate Portfolio Manager
  • T613.237.5544 x 313
  • 1.800.230.5544
  • F613.237.5949
  • 265 Carling Avenue,
    8th Floor,
  • Ottawa, Ontario K1S 2E1

Why I prefer to avoid preferred shares (Alternative Investments, Part 2)

When you fly, it’s nice to enjoy the perks that come from a preferred status – cushy seats, exclusive lounges, tasty treats … or so I hear. It’s only natural to assume that “preferred shares” would likewise enhance your investment experience. But have they actually delivered as the name suggests? The short answer is: Not so much. Their inherent structure tends to create far more potential risks than expected rewards.


In short, there are several practical reasons why I prefer to avoid preferred shares. Learn what they are in today’s Common Sense Investing video (part 2 in an ongoing series on alternative investments). 

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By: Ben Felix | 0 comments

Do You Need Alternative Investments? Part I: High Yield Bonds

Do you need more yield? High yield bonds might be the answer. But not actually. Bonds are typically held in your portfolio for stability, but high yield bonds are risky enough that they should not be relied on for that purpose.


Investing in high yield bonds may be done for other reasons, such as diversification. Unfortunately they have not historically done a very good job at increasing the risk-adjusted returns of investment portfolios. Are high yield bonds a good investment? Only time will tell. In today’s Common Sense Investing video, I review the long-term evidence on high yield bonds, and offer my opinion on their use in portfolios.

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By: Ben Felix | 2 comments