Comments on: RRSP Tip # 3: Investments to Avoid http://www.canadiancapitalist.com/rrsp-tip-3-investments-to-avoid/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dave B http://www.canadiancapitalist.com/rrsp-tip-3-investments-to-avoid/#comment-20548 Dave B Thu, 15 Feb 2007 20:40:08 +0000 http://www.canadiancapitalist.com/2007/02/15/rrsp-tip-3-investments-to-avoid#comment-20548 Though I agree with most of the items listed, I do not agree with the Sector Investing. On the surface, it may seem risky, but some sector funds actually have quite low risk because they are still diversified geographically and between small, medium, and large caps as well as growth and value. I think that you may be painting Sector ETF's with the same "Don't chase the hottest fund" brush. It IS all about risk and reward, but don't assume all Sector ETF's are high risk. There are some that continue to give high yielda at low risk (e.g., XFN). Though I agree with most of the items listed, I do not agree with the Sector Investing. On the surface, it may seem risky, but some sector funds actually have quite low risk because they are still diversified geographically and between small, medium, and large caps as well as growth and value.

I think that you may be painting Sector ETF’s with the same “Don’t chase the hottest fund” brush. It IS all about risk and reward, but don’t assume all Sector ETF’s are high risk. There are some that continue to give high yielda at low risk (e.g., XFN).

]]> By: Big Cajun Man http://www.canadiancapitalist.com/rrsp-tip-3-investments-to-avoid/#comment-20513 Big Cajun Man Thu, 15 Feb 2007 17:14:57 +0000 http://www.canadiancapitalist.com/2007/02/15/rrsp-tip-3-investments-to-avoid#comment-20513 Well not including Insurance might imply don't buy stock in Insurance Companies, which I think is a good place to put money. I was thinking about publishing my portfolio and calling it the "Don't buy these Equities" fund, that way folks at least have a hint about what not to buy. :-) --C8j Well not including Insurance might imply don’t buy stock in Insurance Companies, which I think is a good place to put money.

I was thinking about publishing my portfolio and calling it the “Don’t buy these Equities” fund, that way folks at least have a hint about what not to buy. :-)

–C8j

]]> By: traineeinvestor http://www.canadiancapitalist.com/rrsp-tip-3-investments-to-avoid/#comment-20457 traineeinvestor Thu, 15 Feb 2007 07:48:05 +0000 http://www.canadiancapitalist.com/2007/02/15/rrsp-tip-3-investments-to-avoid#comment-20457 I would add anything with the word "insurance" in its description or which adds an extra layer of fees. While I take your point on gold bullion, there have been articles written which claim that including some commodities in a portfolio can reduce risk without having an adverse impact on returns. Also, I view silver as an industrial commodity these days (and not the monetary metal it once was) which makes it a rather different metal from gold. On hedge funds (a term which covers a wide range of fund strategies), while I generally agree with what you say, the growing number of hedge funds together with the increasing sophistication of investors may eventually lead to a situation where we see well managed hedge funds that offer lower cost structures than we commonly see today. If that happens, then it may be possible to reduce volatility/risk in a portfolio by including some hedge funds that show low correlation with market movements. So while I am not comfortable including hedge funds in my portfolio today, it is possible that this may change at some point in the future. (That said, I am not holding my breath.) I would add anything with the word “insurance” in its description or which adds an extra layer of fees.

While I take your point on gold bullion, there have been articles written which claim that including some commodities in a portfolio can reduce risk without having an adverse impact on returns. Also, I view silver as an industrial commodity these days (and not the monetary metal it once was) which makes it a rather different metal from gold.

On hedge funds (a term which covers a wide range of fund strategies), while I generally agree with what you say, the growing number of hedge funds together with the increasing sophistication of investors may eventually lead to a situation where we see well managed hedge funds that offer lower cost structures than we commonly see today. If that happens, then it may be possible to reduce volatility/risk in a portfolio by including some hedge funds that show low correlation with market movements. So while I am not comfortable including hedge funds in my portfolio today, it is possible that this may change at some point in the future. (That said, I am not holding my breath.)

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/rrsp-tip-3-investments-to-avoid/#comment-20445 Canadian Capitalist Thu, 15 Feb 2007 04:15:09 +0000 http://www.canadiancapitalist.com/2007/02/15/rrsp-tip-3-investments-to-avoid#comment-20445 I should have added hedge funds, segregated funds and wrap accounts to the list. I should have added hedge funds, segregated funds and wrap accounts to the list.

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