Comments on: Diversification worked (to a degree) in 2008 http://www.canadiancapitalist.com/diversification-worked-to-a-degree-in-2008/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: bob http://www.canadiancapitalist.com/diversification-worked-to-a-degree-in-2008/#comment-182714 bob Fri, 20 Feb 2009 20:52:53 +0000 http://www.canadiancapitalist.com/?p=1743#comment-182714 hi, regarding asset allocation.. i was looking at 6 years from 2003 to 2008 TD -e funds TD equity index e fund TDB900 gave 26.6,14,23.3,16.9,9.6,(-32.9) TD bond index e fund TDB909 gave 6,6.5,5.7,3.6,3.2,5.7 these were their respective 6 years return if i had invested $100,000 100% equity - portfolio would be $152,985 100% bond- portfolio would be $134,848 if instead i choose a 50%-50% portfolio with a yearly rebalance portfolio would be $148,798 all the returns(dividends) are being reinvested equities comes up better even after losing 32.9% in the last year.. is asset allocation with periodic rebalancing required? it does'nt seem to do any good. thanks hi,
regarding asset allocation..
i was looking at 6 years from 2003 to 2008
TD -e funds

TD equity index e fund TDB900 gave
26.6,14,23.3,16.9,9.6,(-32.9)
TD bond index e fund TDB909 gave
6,6.5,5.7,3.6,3.2,5.7

these were their respective 6 years return

if i had invested $100,000

100% equity – portfolio would be $152,985
100% bond- portfolio would be $134,848

if instead i choose a 50%-50% portfolio with a yearly rebalance portfolio would be $148,798

all the returns(dividends) are being reinvested

equities comes up better even after losing 32.9% in the last year..

is asset allocation with periodic rebalancing required? it does’nt seem to do any good.

thanks

]]> By: Free Business Cards, QuickTax Giveaway and Weekend Reading | Million Dollar Journey http://www.canadiancapitalist.com/diversification-worked-to-a-degree-in-2008/#comment-182684 Free Business Cards, QuickTax Giveaway and Weekend Reading | Million Dollar Journey Fri, 20 Feb 2009 11:31:34 +0000 http://www.canadiancapitalist.com/?p=1743#comment-182684 [...] Canadian Capitalist proves how diversification was successful in 2008. [...] [...] Canadian Capitalist proves how diversification was successful in 2008. [...]

]]> By: The Financial Blogger | Financial Ramblings http://www.canadiancapitalist.com/diversification-worked-to-a-degree-in-2008/#comment-182273 The Financial Blogger | Financial Ramblings Sat, 14 Feb 2009 11:40:39 +0000 http://www.canadiancapitalist.com/?p=1743#comment-182273 [...] Canadian Capitalist is talking about how investment diversification worked out in 2008. [...] [...] Canadian Capitalist is talking about how investment diversification worked out in 2008. [...]

]]> By: Weekly Dividend Investing Roundup - February 14, 2009 | The Dividend Guy Blog http://www.canadiancapitalist.com/diversification-worked-to-a-degree-in-2008/#comment-182271 Weekly Dividend Investing Roundup - February 14, 2009 | The Dividend Guy Blog Sat, 14 Feb 2009 11:02:12 +0000 http://www.canadiancapitalist.com/?p=1743#comment-182271 [...] Diversification (as part of your asset allocation) is crucial [...] [...] Diversification (as part of your asset allocation) is crucial [...]

]]> By: Doug http://www.canadiancapitalist.com/diversification-worked-to-a-degree-in-2008/#comment-182085 Doug Thu, 12 Feb 2009 12:45:06 +0000 http://www.canadiancapitalist.com/?p=1743#comment-182085 A lot of people recommend to avoid long term bonds. This includes Jack Bogle, so CC is in good company. However, in one scenario, I could see long term bonds doing well. If deflation becomes an issue, they would be attractive. A lot of people recommend to avoid long term bonds. This includes Jack Bogle, so CC is in good company. However, in one scenario, I could see long term bonds doing well. If deflation becomes an issue, they would be attractive.

]]> By: Doug http://www.canadiancapitalist.com/diversification-worked-to-a-degree-in-2008/#comment-182083 Doug Thu, 12 Feb 2009 12:40:11 +0000 http://www.canadiancapitalist.com/?p=1743#comment-182083 About CIBC index funds, they have some added attractions if you can get the discount. As Econ Student pointed out, CIBC has index funds for categories that no one else covers. I don't know of any other Canadian emerging markets index fund. Also, I don't believe any of their funds are currency hedged. There US index fund is the only Canadian MF/ETF that tracks the entire US market; the rest are S&P500 funds. About CIBC index funds, they have some added attractions if you can get the discount. As Econ Student pointed out, CIBC has index funds for categories that no one else covers. I don’t know of any other Canadian emerging markets index fund. Also, I don’t believe any of their funds are currency hedged. There US index fund is the only Canadian MF/ETF that tracks the entire US market; the rest are S&P500 funds.

]]> By: Doug http://www.canadiancapitalist.com/diversification-worked-to-a-degree-in-2008/#comment-182084 Doug Thu, 12 Feb 2009 12:40:04 +0000 http://www.canadiancapitalist.com/?p=1743#comment-182084 About CIBC index funds, they have some added attractions if you can get the discount. As Econ Student pointed out, CIBC has index funds for categories that no one else covers. I don't know of any other Canadian emerging markets index fund. Also, I don't believe any of their funds are currency hedged. There US index fund is the only Canadian MF/ETF that tracks the entire US market; the rest are S&P500 funds. About CIBC index funds, they have some added attractions if you can get the discount. As Econ Student pointed out, CIBC has index funds for categories that no one else covers. I don’t know of any other Canadian emerging markets index fund. Also, I don’t believe any of their funds are currency hedged. There US index fund is the only Canadian MF/ETF that tracks the entire US market; the rest are S&P500 funds.

]]> By: Dividend Growth Investor http://www.canadiancapitalist.com/diversification-worked-to-a-degree-in-2008/#comment-182071 Dividend Growth Investor Thu, 12 Feb 2009 08:31:28 +0000 http://www.canadiancapitalist.com/?p=1743#comment-182071 CC, TIPS is an asset class that I have not fully explored. It does give you upside whenever there is inflation, but during a deflationary environment the "par value" is decreasing.. CC,

TIPS is an asset class that I have not fully explored. It does give you upside whenever there is inflation, but during a deflationary environment the “par value” is decreasing..

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/diversification-worked-to-a-degree-in-2008/#comment-182046 Canadian Capitalist Wed, 11 Feb 2009 23:18:13 +0000 http://www.canadiancapitalist.com/?p=1743#comment-182046 DGI: I avoid junk bonds, corporate bonds etc. They have high correlation with equities. I also avoid long-term bonds and my fixed income is solely in short-term bonds. In the future, when real-return bonds (TIPS for you guys) have better yields, I'll pick some up. EconStudent: I was aware of the CIBC MER rebate, I'll probably make a post out of it next week. Thanks for the idea. I haven't given much thought to CIBC funds because I figure small investors will go with e-Series funds and larger portfolios will opt for much cheaper ETFs. anon: Most financial planners, esp. the commissioned ones, won't suggest low-cost, low-turnover portfolios. Bay Street and Wall Street are giant fleecing machines -- they want to extract as much fees out of investors as possible. The bottom line is the less we pay in fees, the better it is for investors but you won't hear it from someone whose livelihood depends on us not knowing that. DGI: I avoid junk bonds, corporate bonds etc. They have high correlation with equities. I also avoid long-term bonds and my fixed income is solely in short-term bonds. In the future, when real-return bonds (TIPS for you guys) have better yields, I’ll pick some up.

EconStudent: I was aware of the CIBC MER rebate, I’ll probably make a post out of it next week. Thanks for the idea. I haven’t given much thought to CIBC funds because I figure small investors will go with e-Series funds and larger portfolios will opt for much cheaper ETFs.

anon: Most financial planners, esp. the commissioned ones, won’t suggest low-cost, low-turnover portfolios. Bay Street and Wall Street are giant fleecing machines — they want to extract as much fees out of investors as possible. The bottom line is the less we pay in fees, the better it is for investors but you won’t hear it from someone whose livelihood depends on us not knowing that.

]]> By: anon http://www.canadiancapitalist.com/diversification-worked-to-a-degree-in-2008/#comment-182040 anon Wed, 11 Feb 2009 21:59:27 +0000 http://www.canadiancapitalist.com/?p=1743#comment-182040 EconStudent - Hello, thank you very much! I don't have that much floating around though, but it's good to know. EconStudent – Hello, thank you very much! I don’t have that much floating around though, but it’s good to know.

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