Search found 5595 matches

by ghariton
10 Nov 2017 22:33
Forum: Financial News, Policy and Economics
Topic: NAFTA is dead. So now what?
Replies: 19
Views: 891

Re: NAFTA is dead. So now what?

Good news. It seems that there is agreement to negotiate a new TPP after all. In a major breakthrough, trade ministers from 11 Pacific Rim countries said they reached a deal Saturday to proceed with the free-trade Trans-Pacific Partnership deal that was in doubt after President Donald Trump abandone...
by ghariton
10 Nov 2017 18:55
Forum: Financial News, Policy and Economics
Topic: NAFTA is dead. So now what?
Replies: 19
Views: 891

Re: NAFTA is dead. So now what?

One of the ways touted as mitigating the effects of an end to NAFTA has been new trade deals with other countries. A possibility is to renew efforts to implement the TPP, a treaty from which the U.S. has withdrawn, but to which there are still eleven signatories, including Canada. Of course, Canada ...
by ghariton
07 Nov 2017 13:35
Forum: Retirement, Pensions and Peace of Mind
Topic: Annuity
Replies: 18
Views: 808

Re: Annuity

yes you can buy them directly from insurance companies. Has anyone actually done this and if so, what insurance companies. Also, do you know if the price was discounted compared to what they offer if bought through an agent. I believe the agent has about a 2% cost to the annuity so I am wondering i...
by ghariton
05 Nov 2017 20:48
Forum: Financial Planning and Building Portfolios
Topic: Strip bonds or Bond ETF
Replies: 16
Views: 506

Re: Strip bonds or Bond ETF

I think that people worry way too much about bonds when their portfolio contains stocks. I share your opinion... as long as the bonds are rated A or better. In fact, the extra return for taking on credit risk is just not worth it to me, and I hold only government bonds. After all, I hold them to re...
by ghariton
02 Nov 2017 17:12
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 263
Views: 15937

Re: Clippings 2017

DenisD wrote:
02 Nov 2017 14:50
Maybe he means something like the average of the last 90 years?
Maybe so.

But I don't think that would be any more meaningful.

Unless he thinks that the economy of the 1920s and 1930s is a good guide to today's economy.

George
by ghariton
02 Nov 2017 14:32
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 263
Views: 15937

Re: Clippings 2017

Interview with Barry Ritholz on evidence based investing, apparently the latest big thing. (Because most investors have been investing without any evidence, based on hunches, or raw emotion, or whatever. Just a little condescending?) Here's a quote from Mr. Ritholz: I'm not going to argue by most m...
by ghariton
21 Oct 2017 22:30
Forum: Financial News, Policy and Economics
Topic: Interest rates
Replies: 6
Views: 344

Re: Interest rates

Generally speaking, price is what the seller is asking for. There may or may not be any buyers at that price, hence there may or may not be a transaction. Of course, the buyer is free to make public a price at which he is willing to buy. But that is much rarer. Although it does happen regularly in f...
by ghariton
21 Oct 2017 13:39
Forum: Financial News, Policy and Economics
Topic: Interest rates
Replies: 6
Views: 344

Re: Interest rates

Simplifying greatly, rising interest rates have two offsetting impacts on equity prices. First, conceptually at least, the price of a share is the present value of all future cash flows that the investor can expect to receive -- dividends, buybacks, and liquidation in the unfortunate event that this...
by ghariton
20 Oct 2017 13:45
Forum: Financial News, Policy and Economics
Topic: NAFTA Renegotiation
Replies: 62
Views: 3223

Re: NAFTA Renegotiation

:thumbsup: Indeed. Too freaking lazy to develop east and west market opportuinities. In fairness, the U.S. and Mexico were the only attractive markets to which our exporters had reasonably free access. When the U.K. joined the EU in 1972, that put an end to a very attractive potential market. But t...
by ghariton
20 Oct 2017 13:06
Forum: Financial News, Policy and Economics
Topic: NAFTA is dead. So now what?
Replies: 19
Views: 891

Re: NAFTA is dead. So now what?

nobody really knows, so I'm going to continue to still to my plan and asset allocation as stated in my investment policy statement (IPS). :thumbsup: :thumbsup: :thumbsup: Anyway, even if I wanted to make changes (which I don't), I fail to see what those changes should be? Reduce my holdings of U.S....
by ghariton
06 Oct 2017 12:51
Forum: Financial Planning and Building Portfolios
Topic: Investing styles
Replies: 228
Views: 18777

Re: Investing styles

The traditional reason for buying the market was the lower cost of index funds. Perhaps. In my case, the reason for buying the market is diversification. I believe that is the point AltaRed is making as well. I believe that the stock market is essentially a random walk with upward drift. Some style...
by ghariton
05 Oct 2017 23:11
Forum: Financial Planning and Building Portfolios
Topic: Investing styles
Replies: 228
Views: 18777

Re: Investing styles

last few years What do the last few years tell us about anything? Not much, if you're trying to forecast financial markets. But if you look at longer historic periods, you start introducing data from periods that are increasingly different. So even long historic periods don't help very much in fore...
by ghariton
05 Oct 2017 21:56
Forum: Financial Planning and Building Portfolios
Topic: Investing styles
Replies: 228
Views: 18777

Re: Investing styles

Perhaps it should have been titled What Worked on Wall Street ... Yup. I saw an article recently (can't remember exactly where) that claimed that a style that enjoyed a period of great success often underperforms afterwards, because a whole bunch of people pile in and drive the price up to the poin...
by ghariton
05 Oct 2017 17:26
Forum: Financial Planning and Building Portfolios
Topic: Investing styles
Replies: 228
Views: 18777

Re: Investing styles

Why not? After all, he back-tested it and all. 'He' is a 'she' and she even talked to C. Asness about the CAT factor: I decided to get another opinion. For this, I conferred with Cliff Asness, founder of AQR Capital Management and a pioneer of factor investing. “Everything you can sort on can be a ...
by ghariton
05 Oct 2017 13:55
Forum: Financial Planning and Building Portfolios
Topic: Investing styles
Replies: 228
Views: 18777

Re: Investing styles

The number of investment styles is proliferating. And most of the new ones are referred to as "smart beta". I particularly liked this one , I’d just entered in an index built from companies with “cat” in their names -- yes, the furry felines -- hit a button and watched it back-test to an 849,751 per...
by ghariton
01 Oct 2017 21:35
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 854
Views: 72499

Re: Investment income in a CCPC

Anybody else will be looking at Individual Pensions Plans after the Morneau's fiscal reform? Catch the IPP wave https://retirehappy.ca/catch-the-ipp-wave/ IPP vs RRSP https://www.integris-mgt.com/publish/TaxLetter - IPP vs RRSP.pdf I looked onto IPPs some ten years ago, when there were three option...
by ghariton
30 Sep 2017 14:26
Forum: Financial News, Policy and Economics
Topic: NAFTA Renegotiation
Replies: 62
Views: 3223

Re: NAFTA Renegotiation

Hasn't Canada won WTO rulings against the US in the past ... IIRC lumber? ... and they were ignored by the US ? Indeed. While the WTO helps, it is a slow, clunky, and time-consuming dispute resolution process. This is why something like the present Chapter 19 in NAFTA is so valuable. And this is wh...
by ghariton
29 Sep 2017 18:07
Forum: Financial News, Policy and Economics
Topic: NAFTA Renegotiation
Replies: 62
Views: 3223

Re: NAFTA Renegotiation

I kinda feel that Canada needs to make reviving TPP a bigger priority than it has been. I'm not a huge fan of everything in the deal -- I'd love to see the intellectual property provisions left out now that the US is out of the deal, as they're the ones who insisted on them -- but given the uncerta...
by ghariton
28 Sep 2017 16:33
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 263
Views: 15937

Re: Clippings 2017

Is interest in options one of those things that peak near market tops? TD has been running these "free" seminars for many years now, at least in the Ottawa area. I don't know what the attendance levels are -- maybe that's what your indicator should be -- but I assume that the turnout must be reason...
by ghariton
28 Sep 2017 13:43
Forum: Financial News, Policy and Economics
Topic: Protectionism
Replies: 292
Views: 26338

Re: Protectionism

Two wrongs don't make a right. Yes, Boeing is heavily subsidized by the U.S. government. U.S. taxpayers are paying huge amounts so that Boeing can sell aircraft below the cost of making them. That's just stupid. Not only is it an unnecessary burden for U.S. taxpayers, it comes at the cost of more pr...
by ghariton
27 Sep 2017 18:46
Forum: Financial News, Policy and Economics
Topic: Protectionism
Replies: 292
Views: 26338

Re: Protectionism

As expected, the U.S. government's preliminary decision is to levy countervailing duties on Bombardier, on the C-Series aircraft it wants to sell to Delta. And, also as expected, the Canadian government is denouncing Boeing and refusing to buy the Super Hornets. The lead in to the story from the CBC...
by ghariton
27 Sep 2017 13:15
Forum: Financial Planning and Building Portfolios
Topic: Investing styles
Replies: 228
Views: 18777

Re: Investing styles

Wes Gray : Is value investing dead? It depends on how you measure value. Over the last 10 years (June 1, 2007 to June 30, 2017) a generic portfolio of the cheapest stocks (labeled “Generic Value (P/B)” in the chart below) based on price-to-book ratios earned a compound annual total return of 2.44%,...
by ghariton
19 Sep 2017 18:01
Forum: Financial Planning and Building Portfolios
Topic: Philosophy of dividend investing?
Replies: 354
Views: 15782

Re: Philosophy of dividend investing?

Thank you, Norm. Very interesting. My first reaction is that investing in Canadian dividend-payers is a very concentrated strategy. It achieved a high rate of return over the period you cover. But I would fear that the lack of diversification might make the strategy vulnerable in downturns. Out of c...
by ghariton
19 Sep 2017 15:28
Forum: Financial Planning and Building Portfolios
Topic: Philosophy of dividend investing?
Replies: 354
Views: 15782

Re: Philosophy of dividend investing?

Larry Swedroe thinks dividends don't matter , except as part of total return: Conclusion Both theory and historical evidence demonstrate there isn’t anything unique about dividends. They are just another source of profit, along with capital gains. Yet many investors treat these two sources of profit...
by ghariton
14 Sep 2017 21:02
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 854
Views: 72499

Re: Investment income in a CCPC

Rysto wrote:
14 Sep 2017 20:16
The GST was supposed to be a replacement for a tax on manufacturers, which was indeed repealed. The GST was revenue neutral.
You're right of course. I don't know what I was thinking when I wrote that.

George