Cutting Through the Noise
January 7, 2012
My holiday reading included two journal articles that challenge the notion that investing for the long term reduces risk. The message: It’s all well and good to recommend that an investor take the long view and not worry about short-term market dips...
Read MoreDecember 23, 2011
I came out of the “me” generation (have I told you about my latest injury?), so even though this time of year is about giving, I’m mostly into receiving. In our household, my wife Lori goes for quantity at Christmas, while I’m all about quality. When I wrote...
Read MoreDecember 10, 2011
It’s a remarkable time to be an investor and investment professional. After decades of overspending, we’re watching Europe melt down and the American empire decline faster than anyone expected. The debt burden has accelerated the power...
Read MoreNovember 26, 2011
A year ago, I wrote a column inspired by a holiday in Arizona (my in-laws have that effect on me). The piece attempted to level a rather tilted picture of the United States, one that was firmly focused on dismal economic and political news. I suggested that from...
Read MoreNovember 12, 2011
I recently watched a promotional video that outlined the reasons for owning dividend-paying stocks – tax-efficient income, lower volatility and you get paid to wait for markets to recover. I agreed with all the fund manager's points, but he failed...
Read MoreOctober 29, 2011
“Creep.” The dictionary defines it as a "slow and stealthy movement." To me, it’s something you don’t notice while it’s happening, but later when you do, you go "Wow!" If you think about our lifestyle, we've slowly moved to a place where jeans are...
Read MoreOctober 15, 2011
I’ve written in the past about the tension between the investment profession and the investment business. As asset managers, we need to find a balance between managing portfolios to achieve the best return for our clients, and making a profit for...
Read MoreOctober 1, 2011
“In calmer moments, investors recognize their inability to know what the future holds. In moments of extreme panic or enthusiasm, however, they become remarkably bold in their predictions: They act as though uncertainty has vanished and the...
Read MoreSeptember 17, 2011
“Isn’t it funny when you walk into an investment firm and see the financial advisers watching CNBC. It gives me the same feeling of confidence I would have if I walked into the Mayo Clinic and the doctors were watching General Hospital.” This little...
Read MoreSeptember 3, 2011
I got turned on to finance while stumbling through my MBA at the University of Western Ontario. I suddenly found myself reading Report on Business right after the Sports section (go figure). When it came to finding a job, I got lucky. There weren't many...
Read MoreAugust 21, 2011
In light of the recent weakness and volatility in the stock market, both statements are particularly poignant. It’s easy to agree with the logic and simplicity of Warren Buffett, but not so easy to behave like him. My former partner's shaking hand reinforces...
Read MoreAugust 6, 2011
“Hey Tom, how was your holiday? The weather’s been great – skiing conditions must have been calm?” “Oh Ralphie, it was amazing. Two weeks of Crystal Lake at its best. I’m totally decompressed. But what about you man? You’re looking pretty ragged...
Read MoreJuly 23, 2011
I recently spoke at a conference about the future of the wealth management industry. It was a good audience, but a bad gig. No matter what I said, I was sure to be wrong about some things. As Yogi Berra said, "It1s tough to make predictions, especially...
Read MoreJuly 8, 2011
Are you confused? I certainly am. It’s not clear whether investors are on a risk-taking binge, or are battening down the hatches for another market decline. There is plenty of evidence in support of the risk binge. Technology IPOs are coming out at exotic...
Read MoreJune 24, 2011
We’ve had low interest rates for years, and really low rates for almost three. We’re used to them, and may even be getting complacent. I had more questions and concerns from clients about rising interest rates a year or two ago than I do now. Well, I’m here to...
Read MoreJune 10, 2011
We heard this week that Vanguard, the giant U.S. asset manager, is coming to Canada. As a permanent student of the business, I’ve been fascinated by Vanguard for many years. It’s an example of a company that grew through word of mouth. It went viral...
Read MoreMay 27, 2011
“What I find of particular interest is the speed at which changes in communication technology are happening. It’s causing a great intergenerational knowledge gap, which is rather worrisome because many decision makers are still part of my old-fart...
Read MoreMay 13, 2011
Personal disclosure: I’m a dyed-in-the-wool active manager, but admit to having used exchange-traded funds in my portfolio. I’ve tread on the dark side for tax planning purposes and, occasionally, to hedge certain long-term positions. I also must...
Read MoreApril 29, 2011
I’ve enjoyed watching the federal election campaign, but that’s where it ends. It will have no impact on markets (for more than a day), and my interest in being a public official has never been lower (it’s a brutal job). The office I’m interested in running for, however, is...
Read MoreApril 15, 2011
Value managers make a habit of scanning the 'new lows' list on the stock page. They’re hoping to find good companies that have stumbled and are oversold. Buyers of the funds run by those same managers, however, rarely do that. They most often go for the...
Read MoreApril 1, 2011
In Toronto last week, I was waiting for a friend at my Starbucks office. As I browsed the Sports section, I couldn’t help but overhear a nearby conversation between two investment types. The checked shirt was leading the discussion. “My overweight in...
Read MoreMarch 18, 2011
Over the last two years, I’ve spent most of my time encouraging people to get invested. As a result of the 2008-09 market meltdown, there were, and still are, too many investors who have strayed significantly from their long-term asset mix and are out of the...
Read MoreMarch 4, 2011
In addition to my day job, I sit on investment committees for two institutional funds, so every quarter there is a pile of manager reports to read and many different perspectives to assimilate. Unfortunately, if I try to do too much in a short time, as I did this week...
Read MoreFebruary 18, 2011
“Risk-free investing. Yes, it does exist.” These words are featured prominently in a financial institution’s ads we’re seeing this season. And every time I see them, it sets me off. Why? Because investing is all about taking risk. Without it, we get risk-free...
Read MoreFebruary 4, 2011
Bay Street, we have a problem. A PR problem. Our clients think we can do more than we’re capable of. Some think we know which stocks are going up and when to get in and out of the market. We’re setting them up for disappointment and as a...
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