Comments on: An Investor’s Worst Enemy http://www.canadiancapitalist.com/an-investors-worst-enemy/ Helping you invest and prosper Sat, 11 Feb 2012 19:27:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Phil S http://www.canadiancapitalist.com/an-investors-worst-enemy/#comment-12384 Phil S Sat, 18 Nov 2006 01:24:46 +0000 http://www.canadiancapitalist.com/2006/11/13/an-investors-worst-enemy#comment-12384 I completely disagree. Most financial advisors tell people to ignore the timing because it certainly helps keep the advisor's income nice and steady. If you sold off and sat on cash and bonds right before the dot.com crash and then poured into the market after the crash, you would've made a bundle (which was me). That one was a no-brainer, as many of the internet companies were making little or no money and had triple digit P/E ratios! The timing of the income trust tax ruling was an artificial phenomenon brought on by the government, but if you were lucky enough to have been sitting on piles of cash at the time, then you would have made a huge bundle in recent days (that was NOT me). In my opinion, timing the market is what it's all about. If you bought investments at the wrong time (just before the dot com bubble burst, or just before the tax ruling came out) you would have lost tons of money, whereas buying right after those landmark events would have netted you huge gains. I completely disagree. Most financial advisors tell people to ignore the timing because it certainly helps keep the advisor’s income nice and steady.
If you sold off and sat on cash and bonds right before the dot.com crash and then poured into the market after the crash, you would’ve made a bundle (which was me). That one was a no-brainer, as many of the internet companies were making little or no money and had triple digit P/E ratios! The timing of the income trust tax ruling was an artificial phenomenon brought on by the government, but if you were lucky enough to have been sitting on piles of cash at the time, then you would have made a huge bundle in recent days (that was NOT me).
In my opinion, timing the market is what it’s all about. If you bought investments at the wrong time (just before the dot com bubble burst, or just before the tax ruling came out) you would have lost tons of money, whereas buying right after those landmark events would have netted you huge gains.

]]> By: Joe http://www.canadiancapitalist.com/an-investors-worst-enemy/#comment-12289 Joe Thu, 16 Nov 2006 17:14:44 +0000 http://www.canadiancapitalist.com/2006/11/13/an-investors-worst-enemy#comment-12289 What about mutual fund companies, like the new Sarbit Asset Managment, that have very competitive MER's and are actively managed? What about mutual fund companies, like the new Sarbit Asset Managment, that have very competitive MER’s and are actively managed?

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/an-investors-worst-enemy/#comment-12164 Canadian Capitalist Wed, 15 Nov 2006 04:14:13 +0000 http://www.canadiancapitalist.com/2006/11/13/an-investors-worst-enemy#comment-12164 Does the returns you mention include dividends? I find that S&P 500 returned 7.8% between 1965-84. The worst 20 year rolling returns were 6.8% between 1962-81. My opinion is avoiding fees and trading costs are even more important in a low return environment. Going forward, it may not be reasonable to expect 12% but a diversified portfolio might return 6%-7%. If inflation stays low, I would be very happy with such a return. Does the returns you mention include dividends? I find that S&P 500 returned 7.8% between 1965-84. The worst 20 year rolling returns were 6.8% between 1962-81. My opinion is avoiding fees and trading costs are even more important in a low return environment.

Going forward, it may not be reasonable to expect 12% but a diversified portfolio might return 6%-7%. If inflation stays low, I would be very happy with such a return.

]]> By: awardtour http://www.canadiancapitalist.com/an-investors-worst-enemy/#comment-12150 awardtour Tue, 14 Nov 2006 22:22:21 +0000 http://www.canadiancapitalist.com/2006/11/13/an-investors-worst-enemy#comment-12150 I'm always leery when I read about comparisons to the S&P in the last 20 years. One must realize the unprecedented growth that occurred several times in the past 2 decades. Yes, the last 20 years were great for lazy investors. But you just have to look at the 20 years previous that (1965 to 1985) to see that lazy investing had lazy returns of just 3.64% annually. On top of that, the majority of that return only occurred at the end of 1982 and the beginning of 1983. Had you sold in mid-1982 your return would have only been 1.1%. I’m always leery when I read about comparisons to the S&P in the last 20 years. One must realize the unprecedented growth that occurred several times in the past 2 decades. Yes, the last 20 years were great for lazy investors. But you just have to look at the 20 years previous that (1965 to 1985) to see that lazy investing had lazy returns of just 3.64% annually. On top of that, the majority of that return only occurred at the end of 1982 and the beginning of 1983. Had you sold in mid-1982 your return would have only been 1.1%.

]]> By: Canadian Dream http://www.canadiancapitalist.com/an-investors-worst-enemy/#comment-12141 Canadian Dream Tue, 14 Nov 2006 19:05:21 +0000 http://www.canadiancapitalist.com/2006/11/13/an-investors-worst-enemy#comment-12141 CC, Thanks for the post. I was thinking of a post similar to yours so I just decided to refer to yours and add my two cents of my experience so far in index investing. CD CC,

Thanks for the post. I was thinking of a post similar to yours so I just decided to refer to yours and add my two cents of my experience so far in index investing.

CD

]]> By: MikeB http://www.canadiancapitalist.com/an-investors-worst-enemy/#comment-12140 MikeB Tue, 14 Nov 2006 18:59:25 +0000 http://www.canadiancapitalist.com/2006/11/13/an-investors-worst-enemy#comment-12140 It's different this time. It’s different this time.

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