Changing Investment Strategies After A Market Crash

Changing Investment Strategies After A Market Crash

Investors should take great care to choose an investment strategy they can stick with for the long term – in both good times and bad. The problem is we make our decisions about risk tolerance and asset allocation in a vacuum. Our retirement portfolio isn’t at stake when we fill out a questionnaire. Then markets…

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Weekend Reading: Chasing Yield Edition

Weekend Reading: Chasing Yield Edition

The recent stock market crash and plunging interest rates may have some investors scrambling for safe havens. Stocks fell by as much as 35 percent (before recovering about half of those losses), while the interest rate on GICs and savings accounts in particular have dropped in lock-step with the Bank of Canada’s emergency rate cuts.…

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Weekend Reading: Investing In A Market Crash Edition

Weekend Reading: Investing In A Market Crash Edition

One knock against passive investing is that while it’s great to match the market’s performance in good times, it’s not as fun to watch your portfolio drop when the outlook turns bearish. Indeed, index investors like me have seen their portfolios take a 20-25 percent hit in a relatively short period during the COVID-19 crisis.…

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Weekend Reading: Dead Cat Bounce Edition

Weekend Reading: Dead Cat Bounce Edition

A dead cat bounce is a temporary resurgence in stock prices after a substantial fall. The phrase originated on Wall Street, derived from the idea that “even a dead cat will bounce if it falls from a great height.”  That’s what investors saw last week as stock markets rallied for three days before slumping again…

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High Interest Savings Account vs. GIC

High Interest Savings Account vs. GIC

Cash is king during times of economic trouble. Working families need emergency savings to pay the bills in case of job loss or a reduction in wages. Retirees or near retirees need a cash cushion to avoid selling stocks at a loss. But should you park your cash in a high interest savings account or…

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Weekend Reading: We Are Here For You Edition

Weekend Reading_ We Are Here For You Edition

My inbox has been flooded with emails from companies telling me “we are here for you” during these difficult times. Banks, credit card companies, airlines, restaurants, Galen Weston Jr., that retailer you bought a shirt from three years ago. They’re all here for you.  What does it mean? For some, it’s public relations and a…

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My Pension Decision: Deferred Pension or Commuted Value

My Pension Decision: Deferred Pension or Commuted Value

There are few personal finance decisions more difficult or complex than the choice between taking a deferred pension in retirement or a lump sum (commuted) value today. It’s a choice many Canadians face each year if they leave a job with a defined benefit pension plan. (If you have a defined contribution pension plan, there’s…

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