In the world of investing, as in life, the trick is not to repeat the same mistakes. Yet even professional professional portfolio managers regularly fall into the traps of linear extrapolation, the itchy trigger finger, and “group think.” Where might these traps lie today? China may provide one a good example, with bulls seemingly near extinction and bear sightings much more common.
Anyone who still hankers for the good old days when GICs paid 6% or more is going to have to wait a long, long time. It’s too much of a stretch to say those days are gone forever, but it’s very possible that we could go through the rest of this decade without seeing a return to those levels.
By Fund Library News Wire | Friday, September 19, 2014
Sliding commodity prices weighed on Canada’s metals and mining, gold, and materials sectors, pushing the S&P/TSX Composite Index to a weekly loss of -1.7%. U.S. and global markets, however, gained on the week as risk-aversion faded following the decisive 55% “No” vote in Thursday’s Scottish referendum on separation from the United Kingdom. The blue-chip S&P 500 Composite Index advanced 1.3% on the week, after backing off from another record high on Friday.
Q – I’d like to set up a savings plan, but the rates for bank savings accounts seem really low. Are there some higher-interest alternatives where I don’t have to lock in my money, as I would with GICs? – Frank B., Brockville, Ontario
By Maria Fernanda Parra | Thursday, September 18, 2014
Emerging market (EM) equities as an asset class are often one of the most misunderstood investment classes of all. For one thing, they represents investments in a very diverse set of countries unknown to many institutional and novice investors. Their diversity is reflected in the many classifications that analysts have created to group similar countries based on criteria such as size, growth, population, and even capital markets development. But the EM asset class has fallen out of favor. Is it ready for a comeback?