Search found 837 matches

by Park
05 Feb 2018 16:14
Forum: Financial News, Policy and Economics
Topic: Clippings 2018
Replies: 16
Views: 1346

Market Timing

There are those who advocate small changes in one's asset allocation. This is really a modest form of market timing. The following is from the book "Simple But Not Easy" by Richard Oldfield: "assume that the future will be something like the long-term past, but not so good when it has just been very...
by Park
05 Feb 2018 15:01
Forum: Under the Mattress: Protecting Your Money
Topic: High Interest Savings Accounts for Corporation
Replies: 19
Views: 602

Re: High Interest Savings Accounts for Corporation

I can't edit a previous post, so I had to create a new one. Some corporations have family trusts. I wondered whether a family trust would be considered a separate depositor, and it looks like each beneficiary of a family trust would be considered a separate depositor. So each beneficiary effectively...
by Park
05 Feb 2018 13:52
Forum: Under the Mattress: Protecting Your Money
Topic: Where to park USD cash?
Replies: 73
Views: 1970

Re: Where to park USD cash?

As an alternative to a $US money market fund, buying Treasury bills or buying Vanguard short term Treasury ETF has been brought up. I have an IB account. For orders less than $US 1 million, the commission is 0.02% on Treasury bills. On $US100K, bid ask spread is around 0.006%. Although one might thi...
by Park
01 Feb 2018 14:14
Forum: Under the Mattress: Protecting Your Money
Topic: High Interest Savings Accounts for Corporation
Replies: 19
Views: 602

Re: High Interest Savings Accounts for Corporation

I checked with CDIC about the question in the last post of this thread.

If you are the sole owner of two corporations, each corporation would considered a separate depositor. And the owner of the two corporations would also be considered a separate depositor; the latter confirms what Adrian wrote.
by Park
01 Feb 2018 09:08
Forum: Financial Planning and Building Portfolios
Topic: Asset Location
Replies: 3
Views: 276

Re: Asset Location

A fourth strategy focuses on rebalancing. Here, you keep part of each position in your taxable and your tax advantaged space. If you rebalance and sell at a loss, do it in your taxable space, as you can apply the cap loss against any cap gains. If you rebalance and sell at a gain, do it in your tax...
by Park
31 Jan 2018 19:23
Forum: Financial News, Policy and Economics
Topic: Clippings 2018
Replies: 16
Views: 1346

Re: Clippings 2018

https://www.amazon.ca/Financial-Market-History-Reflections-Investors-ebook/dp/B06WVBHK72/ref=pd_sim_351_3?_encoding=UTF8&psc=1&refRID=RAPB7F0KJRSZPCQ5CR3E Financial Market History: Reflections on the Past for Investors Today by David Chambers (Author),‎ Elroy Dimson (Editor) "The book’s editors, Dav...
by Park
31 Jan 2018 18:54
Forum: Under the Mattress: Protecting Your Money
Topic: High Interest Savings Accounts for Corporation
Replies: 19
Views: 602

Re: High Interest Savings Accounts for Corporation

http://www.cdic.ca/en/about-di/how-it-works/Pages/one-name.aspx "A depositor can be an individual, a corporation and an association of persons such as a labour union, a civic service group or a religious congregation. However, a sole proprietorship is not considered to be a separate depositor since ...
by Park
31 Jan 2018 15:50
Forum: Under the Mattress: Protecting Your Money
Topic: How Long Can A Bank Hold Money If Withdrawal Requested?
Replies: 3
Views: 198

Re: How Long Can A Bank Hold Money If Withdrawal Requested?

CDIC has been discussed in a number of threads, including debate on such questions. Generally speaking, there would be a spontaneous run on deposits of a FI if someone wanted to make a withdrawal and it was not forthcoming 'instantly' or even a rumour of that happening. A matter of only a few days ...
by Park
31 Jan 2018 13:58
Forum: Under the Mattress: Protecting Your Money
Topic: How Long Can A Bank Hold Money If Withdrawal Requested?
Replies: 3
Views: 198

How Long Can A Bank Hold Money If Withdrawal Requested?

There is variability in the interest rates offered on HISAs and GICs. For example, the highest 5 year GIC rate I can find is 3.25% (Oaken), compared to 1.25% from Scotiabank of CIBC. However, the higher interest rates tend to come from lesser known institutions. A GIC is basically a contract. How co...
by Park
31 Jan 2018 13:19
Forum: Financial News, Policy and Economics
Topic: Clippings 2018
Replies: 16
Views: 1346

Recommended Book

The following assumes you enjoyed reading "The Intelligent Asset Allocator" by William Bernstein. If you're looking for a more recent book, which is somewhat more complicated, I recommend "Smart Portfolios" by Robert Carver.
by Park
31 Jan 2018 12:13
Forum: Financial Planning and Building Portfolios
Topic: Asset Location
Replies: 3
Views: 276

Re: Asset Location

A fourth strategy focuses on rebalancing. Here, you keep part of each position in your taxable and your tax advantaged space. If you rebalance and sell at a loss, do it in your taxable space, as you can apply the cap loss against any cap gains. If you rebalance and sell at a gain, do it in your tax...
by Park
31 Jan 2018 10:30
Forum: Under the Mattress: Protecting Your Money
Topic: High Interest Savings Accounts for Corporation
Replies: 19
Views: 602

Re: High Interest Savings Accounts for Corporation

About HISAs and GICs for corporations, if your corporation has a HISA with a bank or CU, will you get CDIC coverage for a personal account with the same bank or CU? Yes. To elaborate a bit, I don't really understand the premise of the question: why would your (personal) CDIC coverage be influenced ...
by Park
30 Jan 2018 22:10
Forum: Under the Mattress: Protecting Your Money
Topic: High Interest Savings Accounts for Corporation
Replies: 19
Views: 602

Re: High Interest Savings Accounts for Corporation

About HISAs and GICs for corporations, if your corporation has a HISA with a bank or CU, will you get CDIC coverage for a personal account with the same bank or CU?
by Park
30 Jan 2018 14:40
Forum: Financial Planning and Building Portfolios
Topic: Asset Location
Replies: 3
Views: 276

Asset Location

When I started to learn about investing, common advice regarding asset location was to put your bonds in your tax advantaged space and your stocks in our taxable space. This was due to the fact that interest tends to be taxed more heavily than dividends or cap gains. That strategy emphasizes relativ...
by Park
26 Jan 2018 12:35
Forum: Financial News, Policy and Economics
Topic: Higher Inflation May Increase Stock Bond Correlation
Replies: 0
Views: 84

Higher Inflation May Increase Stock Bond Correlation

https://www.blackrockblog.com/2018/01/25/higher-inflation-cost-hedge/?utm_source=blog&utm_medium=hero&utm_campaign=hero "The correlation between stocks and bonds tends to move with nominal growth, the sum of real growth and inflation... Besides growth and inflation...stock-bond correlations have had...
by Park
23 Jan 2018 00:29
Forum: Financial News, Policy and Economics
Topic: Clippings 2018
Replies: 16
Views: 1346

ETFs

https://www.cfapubs.org/doi/pdf/10.2470/rf.v2015.n3.1 If you want to read a book about ETFs, the following 202 page link from the CFA Institute is recommended. http://ieor.columbia.edu/files/seasieor/industrial-engineering-operations-research/pdf-files/Rebalancing_Leveraged_and_Inverse_Funds_White_P...
by Park
21 Jan 2018 21:42
Forum: Financial News, Policy and Economics
Topic: Clippings 2018
Replies: 16
Views: 1346

Re: Clippings 2018

http://www.etf.com/sections/index-inves ... nopaging=1

Supposedly, 2017 was the first year ever that the S&P500 didn't have at least one month with a negative return.
by Park
17 Jan 2018 10:22
Forum: Financial News, Policy and Economics
Topic: Clippings 2018
Replies: 16
Views: 1346

Re: Clippings 2018

http://www.etf.com/sections/index-investor-corner/swedroe-lessons-2017-part-2?nopaging=1 "average stock-price volatility—measured by finding the standard deviation of monthly percentage changes in real stock prices for the preceding year—is an extremely low 1.2%. Between 1872 and 2017, volatility wa...
by Park
16 Jan 2018 23:34
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Why I Wouldn't Invest In Market Neutral Funds
Replies: 1
Views: 182

Re: Why I Wouldn't Invest In Market Neutral Funds

I'd prefer not to bump my own thread, but it's past the time limit where I can edit the original post. The following links from Fama and French should be read by anyone considering a market neutral strategy or a long short strategy: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.596.3599&r...
by Park
15 Jan 2018 14:28
Forum: Financial News, Policy and Economics
Topic: Clippings 2018
Replies: 16
Views: 1346

Re: Clippings 2018

http://awealthofcommonsense.com/2018/01 ... t-in-2018/

"The average peak-to-trough drawdown in stocks over the past 70 years or so is a loss of 13-14% in a given calendar year."
by Park
14 Jan 2018 02:42
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Why I Wouldn't Invest In Market Neutral Funds
Replies: 1
Views: 182

Why I Wouldn't Invest In Market Neutral Funds

http://beta.morningstar.com/articles/838352/investors-experience-higher-and-rising-fees-for-li.html "investors buy alternative funds for diversification, or, more specifically, for their low correlations to equities and bonds and potential alpha...alpha and low correlations are hard for managers to ...
by Park
10 Jan 2018 08:43
Forum: Financial News, Policy and Economics
Topic: Country Investing Based on CAPE
Replies: 6
Views: 200

Re: Country Investing Based on CAPE

"A quantitative value investor will try to identify the stocks exhibiting value characteristics (e.g. low P/E, P/B, P/S, et cetera) and then buy a large enough basket of them where the aggregate value signal remains strong, but there is sufficient diversification to limit idiosyncratic risk...for re...
by Park
10 Jan 2018 02:55
Forum: Financial News, Policy and Economics
Topic: Country Investing Based on CAPE
Replies: 6
Views: 200

Country Investing Based on CAPE

http://www.fortunefinancialadvisors.com/blog/the-limits-of-cape-analysis-for-global-market-rotation "Consider the case of Sweden which, hit a Japan-like CAPE high of 79 in early 2000. At the same time, the U.S. was also at its all-time high, but seemingly a relative bargain at just 47. Since then th...
by Park
07 Jan 2018 11:51
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: Why I Don't Invest In REITs
Replies: 22
Views: 1079

Why I Don't Invest In REITs

http://www.etf.com/sections/index-investor-corner/swedroe-reits-arent-special?nopaging=1 The above link is from Larry Swedroe. "establishing criteria an asset class must meet to be considered distinct: Low correlation with established asset classes, such as broad market equities and government bonds...
by Park
03 Jan 2018 09:56
Forum: Financial News, Policy and Economics
Topic: Clippings 2018
Replies: 16
Views: 1346

Clippings 2018

http://news.morningstar.com/articlenet/article.aspx?id=842605 The above link compares index providers: "The highest-rated ETFs that track S&P, Dow Jones, and CRSP indexes earn Gold ratings, except for the mega-cap offerings from S&P and CRSP, which earn Bronze and Silver ratings, respectively (Dow J...