Search found 5585 matches

by ghariton
06 Oct 2017 12:51
Forum: Financial Planning and Building Portfolios
Topic: Investing styles
Replies: 228
Views: 18559

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: 18559

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: 18559

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: 18559

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: 18559

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: 827
Views: 70428

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: 48
Views: 2470

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: 48
Views: 2470

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: 226
Views: 13308

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: 26120

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: 26120

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: 18559

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: 15458

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: 15458

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: 827
Views: 70428

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
by ghariton
14 Sep 2017 16:12
Forum: Financial Planning and Building Portfolios
Topic: Maximum single position size
Replies: 60
Views: 2586

Re: Maximum single position size

However, it is not clear to me how the RRB will be perform into maturity, as there 2 components - the original 4.25% and the inflation adjustment. Assuming the inflation adjustment will be small, I am concerned about a drop in market value as the premium disappears. The size of the premium has been...
by ghariton
14 Sep 2017 13:10
Forum: Financial Planning and Building Portfolios
Topic: Maximum single position size
Replies: 60
Views: 2586

Re: Maximum single position size

The 2021 RRB at 35% of the portfolio. Everything else is in equity ETFs. Looking through the ETFs, my single biggest holding appears to be Apple, somewhere between 1% and 2%. George When I bought the 2021 RRB, the maturity date seemed like such a long time in the future. Now it is less than 5 years...
by ghariton
13 Sep 2017 14:26
Forum: Financial News, Policy and Economics
Topic: Clippings 2017
Replies: 226
Views: 13308

Re: Why Active In Bonds Does Better Than Stocks

I agree with the first point, that noneconomic players indirectly help active bond investors. And the high turnover of bond indexes doesn't help. One of the reasons that stock indexing works well is low turnover: that keeps costs, including taxes, down. About the preceding paragraph, I'm not convin...
by ghariton
13 Sep 2017 14:18
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 827
Views: 70428

Re: Investment income in a CCPC

How do you feel about GST then? :) Well, since not much can be said on the original topic of this thread until we get more detail from Mr. Morneau as to his proposal, I don't feel too badly continuing off-topic. However, it might be helpful if some kind moderator could split off the last dozen post...
by ghariton
12 Sep 2017 17:14
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 827
Views: 70428

Re: Investment income in a CCPC

izzy wrote:
12 Sep 2017 16:32
My suggestion WAS tongue in cheek George.
I knew that. I just couldn't resist another opportunity to get on my soapbox. :wink:

George
by ghariton
12 Sep 2017 13:57
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 827
Views: 70428

Re: Investment income in a CCPC

How about taxing inherited wealth such as that enjoyed by Trudeau and his cronies whilst we are at it? Other countries do it ! We could use a similar test to determine what is "reasonable" too! It's only "fair" to tax those who have not contributed to the accumulation of the wealth at a higher rate...
by ghariton
11 Sep 2017 21:03
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 827
Views: 70428

Re: Investment income in a CCPC

I'm not sure it is ever fair to tax someone on unrealized gains since it may force the taxpayer to liquidate his/her investment prematurely in order to pay the tax. If the taxpayers had adequate notice -- if it was built into the tax system -- they would adjust and make provision for it. The real p...
by ghariton
11 Sep 2017 17:56
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 827
Views: 70428

Re: Investment income in a CCPC

and let's tax all capital gains on an annual accrual basis as we do with interest! After all,it would only be "fair" since a buck is a buck ! That was the original proposal. It wasn't implemented because it was too hard to do, and the record-keeping would be horrendous. But the principle makes sens...
by ghariton
11 Sep 2017 12:05
Forum: Retirement, Pensions and Peace of Mind
Topic: Does it make sense to rent in later retirment?
Replies: 43
Views: 2060

Re: Does it make sense to rent in later retirment?

Each situation is unique, and there are factors other than monetary that enter into the decision. In my case, I'm very sensitive to noise. Our house is in a very quiet neighbourhood, behind a school and beside a park. There's hardly ever anybody there outside of school hours. I've also had anti-nois...
by ghariton
10 Sep 2017 00:00
Forum: Taxing Situations
Topic: Investment income in a CCPC
Replies: 827
Views: 70428

Re: Investment income in a CCPC

As AltaRed says, to the degree a multinational has a presence in Canada, it pays Canadian taxes. To the degree it has employees in Canada, they pay taxes here too. And yes, Google and Netflix do have Canadian employees. To the degree a foreign company does not have a presence in Canada, why should i...