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Cameron Passmore CIM, FMA, FCSI

Portfolio Manager

Benjamin Felix MBA, CFA, CFP

Associate Portfolio Manager
Contact
  • T613.237.5544 x 313
  • 1.800.230.5544
  • F613.237.5949
  • 265 Carling Avenue,
    8th Floor,
  • Ottawa, Ontario K1S 2E1
November-17-17

Should You Currency Hedge Your Portfolio?

If you’re worried that currency fluctuations might hurt your returns, then hedging can seem like a pretty good idea. It’s a shame that there is no evidence to back that idea up. Time and again it has been shown that currency hedging does not have a material impact on the long-term risk and return characteristics of an equity portfolio. So – should you hedge? 

 

Trying to make a decision in the absence of evidence is kind of like betting on a coin flip. You might win, you might lose, but there is no reason to expect one outcome over the other. In today’s Common Sense Investing video, I will survey the research and provide you with some ideas on how to make the currency hedging decision in your portfolio.

 If you’ve been worried about adding a hedge to your portfolio before the dollar rises – don’t be. It’s impossible to consistently hedge at exactly the right time. It is, however, possible to subscribe to Common Sense Investing for a new video every two weeks.

By: Ben Felix | 0 comments
November-03-17

Are too many people investing in index funds?

I almost feel sorry for them: Active managers warning us that we’re going to break the market if too many of us stop playing their beat-the-market games, and embrace common-sense, index-fund investing instead. To be honest, their warnings strike me as an act of desperation, like the cry of the horse & buggy industry when Henry Ford came along. 

 

Just as Ford’s mass-produced horseless carriage did bring an end to an obsolete era of transportation, index investing is gathering steam compared to less practical approaches. That much seems true. But in today’s Common Sense Investing video, I’ll tell you why I’m not worried one bit that index investing is going to backfire, or otherwise stall out our mostly efficient markets. I’ll ground my perspective in the usual solid evidence – recent and historical. 

So if you’ve been worried that you might destroy the stock markets – or be destroyed by them – as you embrace index fund investing … don’t be. Channel that energy instead into watching for more Common Sense Investing installments by subscribing here and clicking on the bell. 

By: Ben Felix | 0 comments