Comments on: This and That http://www.canadiancapitalist.com/this-and-that-49/ Helping you invest and prosper Sat, 11 Feb 2012 12:40:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dave http://www.canadiancapitalist.com/this-and-that-49/#comment-46259 Dave Sat, 16 Jun 2007 18:51:38 +0000 http://www.canadiancapitalist.com/2007/06/14/this-and-that-49#comment-46259 A Dawn, Years ago I heard someone say: "I am comfortable to allocate 70 to 80 percent of my portfolio in high-tech stocks and my ROR has been awesome." And more recently I heard someone say: "I am comfortable to allocate 70 to 80 percent of my portfolio in real estate and my ROR has been awesome." If anything abnormally high performance in X should be an indicator to get out of X. Oh and "time-tested" is an oxymoron (for lack of a better word). Future performance cannot be predicted from past performance. A Dawn,
Years ago I heard someone say:
“I am comfortable to allocate 70 to 80 percent of my portfolio in high-tech stocks and my ROR has been awesome.”

And more recently I heard someone say:
“I am comfortable to allocate 70 to 80 percent of my portfolio in real estate and my ROR has been awesome.”

If anything abnormally high performance in X should be an indicator to get out of X.

Oh and “time-tested” is an oxymoron (for lack of a better word). Future performance cannot be predicted from past performance.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/this-and-that-49/#comment-45721 Canadian Capitalist Fri, 15 Jun 2007 17:21:01 +0000 http://www.canadiancapitalist.com/2007/06/14/this-and-that-49#comment-45721 I don't know how long you've been investing, but I am not surprised that your returns have been great lately because the past four years, the TSX has an annualized return of more than 20%. But sooner or later, markets have a nasty habit of reverting to mean. If you look at the longer term, the TSX has posted lower returns with higher volatility compared to other markets. With the foreign content limit gone, I think Canadians should diversify their portfolios globally. Now is especially a good time because our currency is strong and foreign markets are relatively undervalued compared to Canada. I don’t know how long you’ve been investing, but I am not surprised that your returns have been great lately because the past four years, the TSX has an annualized return of more than 20%. But sooner or later, markets have a nasty habit of reverting to mean.

If you look at the longer term, the TSX has posted lower returns with higher volatility compared to other markets. With the foreign content limit gone, I think Canadians should diversify their portfolios globally. Now is especially a good time because our currency is strong and foreign markets are relatively undervalued compared to Canada.

]]> By: A Dawn Journal http://www.canadiancapitalist.com/this-and-that-49/#comment-45718 A Dawn Journal Fri, 15 Jun 2007 17:09:22 +0000 http://www.canadiancapitalist.com/2007/06/14/this-and-that-49#comment-45718 This is regarding Point 4, How much of the equity portfolio should be devoted to our home market? I think this question does not have any definite answers. It all depends on personal preferences and comfort level. I am comfortable to allocate 70 to 80 percent of my portfolio to time tested great Canadian companies and my ROR has been awesome. A Dawn http://www.adawn.net http://adawn.squarespace.com This is regarding Point 4, How much of the equity portfolio should be devoted to our home market? I think this question does not have any definite answers. It all depends on personal preferences and comfort level. I am comfortable to allocate 70 to 80 percent of my portfolio to time tested great Canadian companies and my ROR has been awesome.
A Dawn
http://www.adawn.net
http://adawn.squarespace.com

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