- Markets have somewhat recovered from the steep fall last week. If you panicked at the sell-off, now would be a good time to revisit your asset allocation and confirm that you are comfortable with the risks you are taking. Your portfolio could have deviated significantly from your target because some asset classes that have outperformed in the recent past.
- Money magazine’s Jason Zweig points out how emotions are the enemy of successful investing.
- As money market funds may not be the safe haven we thought them to be, Larry MacDonald recommends 30-day cashable GICs as an excellent place to park your cash.
- It happens all the time: investors buy a mutual fund based on a star manager’s past record, only to see him or her leave the fund. Investors, of course, are shackled to the fund due to steep deferred sales charges.
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4 responses so far ↓
1 0xCC // Aug 24, 2007 at 9:29 am
Wow, that Money magazine article is very interesting. It gives some insight into why it is so difficult to remain calm during a market slide like we have had in the last couple of weeks.
2 Thomas // Aug 24, 2007 at 11:41 am
I agree with oxCC. That’s a good link. Thanks!
3 Phil S // Aug 24, 2007 at 12:01 pm
I subscribe to Moneysense and they also talked about psychology & investing in their most recent issue.
The 30-day cashable GICs is old news, I’ve been buying them for more than a year now as the yield on them is higher than what I can get on a T-Bill, based upon an after-brokerage commission yield. At least at BMO, the cost of CDIC insurance premiums seems to be less than the cost of their brokerage fees on GoC T-Bills. Just keep in mind that the maximum insurable amount at any one institution is $100K for those who have that much in cash.
As far as the recent market correction and subsequent rebound, the high quality investments that I had on my watch list didn’t really drop… So that’s why I didn’t do any buying.
4 larry macdonald // Aug 25, 2007 at 10:42 pm
Thanks for the mention. I see you’re in Ottawa. We should meet for a coffee sometime.
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