http://www.canadiancapitalist.com/core-and-non-core-asset-classes/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.canadiancapitalist.com/core-and-non-core-asset-classes/#comment-3813 Phil S Sat, 10 Jun 2006 12:55:45 +0000 http://www.canadiancapitalist.com/2006/06/08/core-and-non-core-asset-classes#comment-3813 This is just one man's opinion, but I disagree with some of the categories that are classified as "core" investments. For me personally, my retirement horizon is 25 yrs away, so in my opinion, a "core" investment is something that is likely to still exist 25 yrs from now. My "core" holdings does include real-return bonds, one of the big 5 banks as well as a diversified mutual fund holding an index of large cap Canadian companies and REITs. Although I personally continue to invest in the US market, in today's environment of record US deficits & spending, I consider any US investment highly speculative and therefore NOT a "core" investment holding. It is, in this one man's opinion, very high risk. I feel the same way about foreign and emerging markets, where poor choices by foreign governments can wipe out your investment portfolio. Just take the recent nationalization efforts in Venezuela and Bolivia as examples. In the opposite direction, asset-backed securities can be safe depending upon what asset is backing that bond. For example, a real estate backed bond can, in my one man's opinion, be classified as a safe and therefore "core" investment. This is just one man’s opinion, but I disagree with some of the categories that are classified as “core” investments. For me personally, my retirement horizon is 25 yrs away, so in my opinion, a “core” investment is something that is likely to still exist 25 yrs from now. My “core” holdings does include real-return bonds, one of the big 5 banks as well as a diversified mutual fund holding an index of large cap Canadian companies and REITs.
Although I personally continue to invest in the US market, in today’s environment of record US deficits & spending, I consider any US investment highly speculative and therefore NOT a “core” investment holding. It is, in this one man’s opinion, very high risk. I feel the same way about foreign and emerging markets, where poor choices by foreign governments can wipe out your investment portfolio. Just take the recent nationalization efforts in Venezuela and Bolivia as examples.
In the opposite direction, asset-backed securities can be safe depending upon what asset is backing that bond. For example, a real estate backed bond can, in my one man’s opinion, be classified as a safe and therefore “core” investment.

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