When spider webs unite they can tie up a lion.
-African Proverb
What is new at MGI?
Jeff Wareham and Anne Milne are teaming up together to create the Wareham Milne Group. Quite simply, we are both believers in the “team” approach, and our partnership offers the unique opportunity for us to focus on our unique skill sets. It will broaden and deepen the financial advisory experience of both of our clienteles.
As advisors we personally work with clients to provide financial and money management advice throughout their evolving life circumstances. Customized investment solutions are tailored for each family’s goals and needs.
Please allow us to introduce ourselves…
Anne Milne, BA, CIM, CFP
Anne has a unique and diverse career experience; she has been a social worker, a vocational counselor and an entrepreneur in women’s fashions. At the University of Western Ontario she studied sociology and has combined that background with economic studies to give her a unique perspective on the investment process. Her specialty is observing the ‘herd’ not only as it relates to stock market activity, but also how we as humans engage in herding behaviours for most social activities, including investing.
Jeff Wareham, BA, CLU, CFP
Jeff’s degree is in English and Economics. That means he can give you an economic forecast in language you can understand! Jeff focuses his time on helping investors achieve their financial goals using time-proven, “common sense” investment strategies. Jeff is also the host of Beyond Funds Weekly on AM980, a show dedicated to the needs of investors who may seek alternatives to traditional mutual funds. His show covers a wide range of current investment news and topics. He lives in London with his wife Ann Martin and their children. Ann joined his team in September 2008 as an Administrative Assistant.
Thursday, October 14, 2010
Friday, July 9, 2010
Top five vacation destinations for your money
Top five vacation destinations for your money
With the lazy, hazy days of summer upon us, it may be the ideal time to send your money on vacation. The summers of our childhood may have been filled with risky adventures, but as we age, a quiet lakeside cottage, or even a leisurely evening on our deck, may be the high point of the summer. Similarly, I believe this summer will be a wonderful time to seek a secure, comfortable, peaceful destination for our money. In fact, with the many unsettling issues and potential events around the world, it may be a great summer to consider a “staycation.” The turbulence of our daily lives, which makes the quiet vacation destination so attractive, is also a compelling argument for seeking a safe harbour for the summer. Let’s take a look at my five ideal vacation destinations for our money.
1) Consider a “Staycation”
In a volatile world, there may never be a better time to seek the safe haven of the Canadian Domestic economy. We have a great government balance sheet, relatively business friendly economic policy, and a wealth of resources unmatched in the western world. We are readily accessible to the booming economies of the Far East, and we still have the best trade relationship with the US of any country in the world. The market may be turbulent on the low volumes of summer, so the opportunity may emerge to pick away at great Canadian companies with solid balance sheets and growth in revenue.
Take a Staycation. Buy Canada.
2) Avoid the roller coasters
The Flash Crash of May 6th remains largely unexplained. Europe is essentially bankrupt. The states in our southern neighbour are worse off than the EU. Global markets have recovered about half of the losses they experienced through the catastrophe of 2008 and early 2009, but have broken many important technical trend lines over the last couple weeks. The market reminds me of Space Mountain, the great dark roller coaster. You really don’t know what is coming next, you can’t see it, but you know it is going to be wild. I love roller coasters, but I think money belongs on the sidelines when the ride looks wild. Ultimately, the majority of long term equity returns have come from dividends, so why not look for stability, with a steady pattern of dividend growth.
Avoid the roller coasters. Buy dividend growers and lower volatility stocks.
3) Go somewhere boring
In January of this year, I took a very strong stance in favour of corporate bond funds. Virtually every advisor I knew was bearish on bonds. I took some heat for this stance, but I was right, and I continue to think the broad based hatred of bonds is misplaced. There is a lot to be said for return of your money trumping return on your money. In fact, even government debt has rallied recently, but I prefer corporate bonds over government bonds. Corporate bonds pay better interest than government bonds. Most Corporate balance sheets are far superior to those of governments. If the economic recovery continues, corporate will benefit from upgrades, and may even earn capital gains despite the fact that global yields on government debt will rise. If the economy stumbles, corporate bonds are much more likely to hold their own than stocks. Get paid to sit on the sidelines, whichever way the economy goes.
Go somewhere boring. Buy corporate bonds
4) Go somewhere unloved
Halloween of 2006 may have been the last time you considered the great, unloved, and dying segment of the Canadian investment market, the income trust. In their glory days, they were the darling of Bay Street. The beneficial tax treatment is disappearing. Investment dealers provide little research. If you held them in O6, they hurt you. Many are busted businesses, with busted capital structures, yet I believe they deserve a second look. With this painful environment, it is tough to own the trusts, but there are some real gems among them, with eye popping, often double digit distributions. I love income payers, so these unloved companies are on my radar.
Go somewhere unloved. Buy income trusts.
5) Consider a seasonal retreat
One of the most impressive interviews I have conducted was of Brooke Thackray, the author of a number of books, including an excellent guide on seasonal investing. Brooke has brought out an Exchange Traded Fund (ETF) that tracks the seasonal nature of the market. This ETF has been outstanding so far. If you want a copy of his book on the subject, let me know. If you want to put your money on autopilot for the summer, why not consider his ETF?
Consider a seasonal retreat. Buy the seasonal ETF.
With the lazy, hazy days of summer upon us, it may be the ideal time to send your money on vacation. The summers of our childhood may have been filled with risky adventures, but as we age, a quiet lakeside cottage, or even a leisurely evening on our deck, may be the high point of the summer. Similarly, I believe this summer will be a wonderful time to seek a secure, comfortable, peaceful destination for our money. In fact, with the many unsettling issues and potential events around the world, it may be a great summer to consider a “staycation.” The turbulence of our daily lives, which makes the quiet vacation destination so attractive, is also a compelling argument for seeking a safe harbour for the summer. Let’s take a look at my five ideal vacation destinations for our money.
1) Consider a “Staycation”
In a volatile world, there may never be a better time to seek the safe haven of the Canadian Domestic economy. We have a great government balance sheet, relatively business friendly economic policy, and a wealth of resources unmatched in the western world. We are readily accessible to the booming economies of the Far East, and we still have the best trade relationship with the US of any country in the world. The market may be turbulent on the low volumes of summer, so the opportunity may emerge to pick away at great Canadian companies with solid balance sheets and growth in revenue.
Take a Staycation. Buy Canada.
2) Avoid the roller coasters
The Flash Crash of May 6th remains largely unexplained. Europe is essentially bankrupt. The states in our southern neighbour are worse off than the EU. Global markets have recovered about half of the losses they experienced through the catastrophe of 2008 and early 2009, but have broken many important technical trend lines over the last couple weeks. The market reminds me of Space Mountain, the great dark roller coaster. You really don’t know what is coming next, you can’t see it, but you know it is going to be wild. I love roller coasters, but I think money belongs on the sidelines when the ride looks wild. Ultimately, the majority of long term equity returns have come from dividends, so why not look for stability, with a steady pattern of dividend growth.
Avoid the roller coasters. Buy dividend growers and lower volatility stocks.
3) Go somewhere boring
In January of this year, I took a very strong stance in favour of corporate bond funds. Virtually every advisor I knew was bearish on bonds. I took some heat for this stance, but I was right, and I continue to think the broad based hatred of bonds is misplaced. There is a lot to be said for return of your money trumping return on your money. In fact, even government debt has rallied recently, but I prefer corporate bonds over government bonds. Corporate bonds pay better interest than government bonds. Most Corporate balance sheets are far superior to those of governments. If the economic recovery continues, corporate will benefit from upgrades, and may even earn capital gains despite the fact that global yields on government debt will rise. If the economy stumbles, corporate bonds are much more likely to hold their own than stocks. Get paid to sit on the sidelines, whichever way the economy goes.
Go somewhere boring. Buy corporate bonds
4) Go somewhere unloved
Halloween of 2006 may have been the last time you considered the great, unloved, and dying segment of the Canadian investment market, the income trust. In their glory days, they were the darling of Bay Street. The beneficial tax treatment is disappearing. Investment dealers provide little research. If you held them in O6, they hurt you. Many are busted businesses, with busted capital structures, yet I believe they deserve a second look. With this painful environment, it is tough to own the trusts, but there are some real gems among them, with eye popping, often double digit distributions. I love income payers, so these unloved companies are on my radar.
Go somewhere unloved. Buy income trusts.
5) Consider a seasonal retreat
One of the most impressive interviews I have conducted was of Brooke Thackray, the author of a number of books, including an excellent guide on seasonal investing. Brooke has brought out an Exchange Traded Fund (ETF) that tracks the seasonal nature of the market. This ETF has been outstanding so far. If you want a copy of his book on the subject, let me know. If you want to put your money on autopilot for the summer, why not consider his ETF?
Consider a seasonal retreat. Buy the seasonal ETF.
Wednesday, May 12, 2010
The Canadian Success Story to Watch
Last week, I visited a wonderful, hospitable province, which, in my opinion, is the Canadian success story of the 21st century. It is almost hard to fathom that there is a province which;
-supplies 1/3 of the world’s potash
-supplies 1/4 of the world’s uranium
-is the 2nd largest oil producing province
-is the 3rd largest natural gas producing province
-is the 3rd largest coal producing province
-has significant oil sands potential
-has the world’s largest diamond exploration project (Shore Gold)
-has significant base and precious metal finds (zinc, copper, gold)
-has the largest rare earth minerals find in North America
-has significant potential for helium and associated gases
(Excerpted from “The World is Watching Saskatchewan” -49 North information brochure)
Few Canadians give much thought to Saskatchewan...but you should. After years of overtly anti-business sentiment, an entrepreneur friendly government has risen to power. Resource development is no longer a dirty word in Saskatchewan, and the result has been swift and dramatic. Major mining company regional head offices are scattered around downtown Saskatoon. The decades old population bleed has been stemmed, and the province grew by 30,000 last year. Graduates who fled their homeland to Alberta, BC, and Ontario, are returning. House prices have doubled. Investment dollars are flowing in, and opportunity abounds.
Over the next few weeks, my show will concentrate on this growing investment opportunity. Stay tuned...it really is an exciting opportunity.
-supplies 1/3 of the world’s potash
-supplies 1/4 of the world’s uranium
-is the 2nd largest oil producing province
-is the 3rd largest natural gas producing province
-is the 3rd largest coal producing province
-has significant oil sands potential
-has the world’s largest diamond exploration project (Shore Gold)
-has significant base and precious metal finds (zinc, copper, gold)
-has the largest rare earth minerals find in North America
-has significant potential for helium and associated gases
(Excerpted from “The World is Watching Saskatchewan” -49 North information brochure)
Few Canadians give much thought to Saskatchewan...but you should. After years of overtly anti-business sentiment, an entrepreneur friendly government has risen to power. Resource development is no longer a dirty word in Saskatchewan, and the result has been swift and dramatic. Major mining company regional head offices are scattered around downtown Saskatoon. The decades old population bleed has been stemmed, and the province grew by 30,000 last year. Graduates who fled their homeland to Alberta, BC, and Ontario, are returning. House prices have doubled. Investment dollars are flowing in, and opportunity abounds.
Over the next few weeks, my show will concentrate on this growing investment opportunity. Stay tuned...it really is an exciting opportunity.
Tuesday, May 11, 2010
The Greek Debt Crisis
I have been struggling with the recent response to the Eurozone debt crisis. Quite simply, the EU has made it evident that they will print money to pay the debt of a member that is in trouble. Although this may seem reassuring in the short term, a basic problem exists. With much of the EU counties' debt denominated in Euros, this fundamentally ensures the devaluation of the Euro, to the detriment of global investors. By allowing debtor nations to pay back the debt with essentially devalued currency, the EU does little to ensure the fundamental economic reforms will happen in the weaker member nations, referred to as the PIGS (Portugal, Italy, Greece, and Spain, with honourable mention to Ireland).
We have seen how well received Greece's austerity measures have been. Less notice has been given to the electoral rebuff dealt to Angela Merckel on the weekend. Reforms will be unwelcome in both the weaker, and stronger states of the Euro.
If that is not troubling enough, read this Financial Post article (CLICK HERE) on the emerging sovereign debt crisis in the US.
Stay tuned. This story is far from over!
We have seen how well received Greece's austerity measures have been. Less notice has been given to the electoral rebuff dealt to Angela Merckel on the weekend. Reforms will be unwelcome in both the weaker, and stronger states of the Euro.
If that is not troubling enough, read this Financial Post article (CLICK HERE) on the emerging sovereign debt crisis in the US.
Stay tuned. This story is far from over!
Saturday, May 1, 2010
Seasonal Investing Interview
This morning, I am interviewing Brooke Thackray, author of several books, about his work on seasonal investing. Tune in to hear his thoughts on the following;
What is seasonal investing?
What causes the seasonal fluctuations in the market place?
Does it always work?
Does seasonal investing only work in the stock market?
What are some of the seasonal trends at this time?
Are there any seasonal investments in the summer time?
How long does the average seasonal trade last?
How can an average investor profit from seasonal investing?
If you would like a copy of his book, I have a limited supply available...send me an email with your name and address!
What is seasonal investing?
What causes the seasonal fluctuations in the market place?
Does it always work?
Does seasonal investing only work in the stock market?
What are some of the seasonal trends at this time?
Are there any seasonal investments in the summer time?
How long does the average seasonal trade last?
How can an average investor profit from seasonal investing?
If you would like a copy of his book, I have a limited supply available...send me an email with your name and address!
Wednesday, April 14, 2010
Loonie Soars
After flirting with parity for weeks, the Loonie closed the deal, ending above par with the greenback for the first time since 2008. This is another step in the apparently ineviitable march higher of our currency. In fact, the surging Loonie has meaningful implications for global investment choices by Canadian investors. Tune in this week, for Beyond Funds |Market Weekly, and I will discuss investment alternatives in a world where the strength of our currency may work against you
Tuesday, April 6, 2010
Why Bonds May Still Be Good For You
The Current & Future Environment For Fixed Income Markets & Investors:
Most new investment dollars put into mutual funds last year went to bonds. Most bonds across the board (provincials, corporates, high-yields, short-term, long-term, real return) rallied to a significant degree during 2009 due to a lowering rate environment, a contraction in credit spreads and lower than anticipated bond defaults. The outlook for long-dated federal, provincial and high-quality corporate bonds will be poor if we experience rising interest rates The Bank of Canada overnight lending rate has been drawn down to 0.25% - most analysts are expecting the rate to be upwardly adjusted in small increments during the years to come beginning Q3 of this year. With interest rates due to rise, what should an investor do?
Short-Term bonds and bond funds that were widely sold as money market alternatives may be a liability since while their durations are short, the quality of the issues is extremely high and thus more liable to rate increases.
How Can We Make Money in the Bond Market this Year and Years to Come?
Interest rates will be adjusted upward when overall economic conditions improve and GDP growth is also on the rise. At 0.25 percent, there really is nowhere to go but up, once the economic recovery gains traction. As we experience better overall economic conditions and improved GDP growth, defaults within high-yield bonds will decline. In relation lower credit quality investment-grade bonds, improved GDP growth and better overall economic conditions will mean credit qualities improve.
This means that the potentially negative effect of rising interest rates may well be off-set by the positive effect lower default rates have on high-yield bonds and the progression in credit quality, lower quality investment-grade corporate bonds experience, spurred by improved economic conditions.
Yet another consideration is that under these circumstances: It is anticipated that many high-yield bonds will become investment-grade (going from BB to BBB ratings) and become eligible for purchase by a variety of institutional purchasers (Pensions, Endowment Funds, Corporations etc...) increasing demand volume.
In other words, corporate and high yield bonds may be the ideal fixed income alternative in an improving economic environment.
Most new investment dollars put into mutual funds last year went to bonds. Most bonds across the board (provincials, corporates, high-yields, short-term, long-term, real return) rallied to a significant degree during 2009 due to a lowering rate environment, a contraction in credit spreads and lower than anticipated bond defaults. The outlook for long-dated federal, provincial and high-quality corporate bonds will be poor if we experience rising interest rates The Bank of Canada overnight lending rate has been drawn down to 0.25% - most analysts are expecting the rate to be upwardly adjusted in small increments during the years to come beginning Q3 of this year. With interest rates due to rise, what should an investor do?
Short-Term bonds and bond funds that were widely sold as money market alternatives may be a liability since while their durations are short, the quality of the issues is extremely high and thus more liable to rate increases.
How Can We Make Money in the Bond Market this Year and Years to Come?
Interest rates will be adjusted upward when overall economic conditions improve and GDP growth is also on the rise. At 0.25 percent, there really is nowhere to go but up, once the economic recovery gains traction. As we experience better overall economic conditions and improved GDP growth, defaults within high-yield bonds will decline. In relation lower credit quality investment-grade bonds, improved GDP growth and better overall economic conditions will mean credit qualities improve.
This means that the potentially negative effect of rising interest rates may well be off-set by the positive effect lower default rates have on high-yield bonds and the progression in credit quality, lower quality investment-grade corporate bonds experience, spurred by improved economic conditions.
Yet another consideration is that under these circumstances: It is anticipated that many high-yield bonds will become investment-grade (going from BB to BBB ratings) and become eligible for purchase by a variety of institutional purchasers (Pensions, Endowment Funds, Corporations etc...) increasing demand volume.
In other words, corporate and high yield bonds may be the ideal fixed income alternative in an improving economic environment.
Sunday, March 21, 2010
Building a New Strategy
Tune in this Saturday, to Beyond Funds Market Weekly, as I wrap up my ten themes for rebuilding your portfolio after the lost decade. Learn how you can strategize, with an advisor, to implement new and fresh ideas after the devastating markets of the first decade of this century. Your investment strategy may need to change after the lessons we have learned from the two major market meltdowns of the last ten years. Tune in next week to determine if you can benefit from a new and different approach to your financial future.
Learn how these 10 key themes matter to you;
1) Diversification means more than just stocks from around the world
2) Move up the balance sheet…consider bonds
3) Learn about convertible debentures as a stock alternative
4) Seg funds make sense to keep you in the market and secure your retirement income
5) Guarantee your principal with a strip bond
6) Look at ETFs as a mutual fund alternative
7) Buy at least one fun or interesting stock this year
8) Use covered calls to generate income
9) Look at a hedge fund for diversification
10) Take a serious look at the cost and performance of your mutual funds
Learn how these 10 key themes matter to you;
1) Diversification means more than just stocks from around the world
2) Move up the balance sheet…consider bonds
3) Learn about convertible debentures as a stock alternative
4) Seg funds make sense to keep you in the market and secure your retirement income
5) Guarantee your principal with a strip bond
6) Look at ETFs as a mutual fund alternative
7) Buy at least one fun or interesting stock this year
8) Use covered calls to generate income
9) Look at a hedge fund for diversification
10) Take a serious look at the cost and performance of your mutual funds
Saturday, March 13, 2010
Today's show
Key topics from today's show
I discussed the subject "What is a Hedge Fund?" and "Why Invest in Hedge Funds?"
Hedge funds can increase portfolio diversification and provide some protection against market downturns. A hedge fund is a private pool of assets with an investment objective to generate positive returns under all market conditions. It employs a wide range of financial instruments and alternative investment strategies. The fund depends less on market direction and more on the skill of the fund manager than long-only portfolios.
I then covered the defining characteristics of a hedge fund. A hedge fund tends to display a low correlation to traditional markt indices. It has an absolute return objective with no benchmark considerations. Typically, it pays a performance-related incentive fee to the fund manager in addition to a management fee. The manager pursues a wide variety of strategies such as concentrated positions, leverage, arbitrage, and stock shorting. These strategies are not for everyone, but are the principal reason hedge funds are able to minimize their correlation to the market.
Typically hedge funds are structured as a limited partnership. Since most hedge funds are privately placed, provincial investment minimums apply. This should be discussed with an advisor. If you wish to discuss one on one, visit http://www.jeffwareham.ca/, or email me at jwareham@mgisecurities.com
I discussed the subject "What is a Hedge Fund?" and "Why Invest in Hedge Funds?"
Hedge funds can increase portfolio diversification and provide some protection against market downturns. A hedge fund is a private pool of assets with an investment objective to generate positive returns under all market conditions. It employs a wide range of financial instruments and alternative investment strategies. The fund depends less on market direction and more on the skill of the fund manager than long-only portfolios.
I then covered the defining characteristics of a hedge fund. A hedge fund tends to display a low correlation to traditional markt indices. It has an absolute return objective with no benchmark considerations. Typically, it pays a performance-related incentive fee to the fund manager in addition to a management fee. The manager pursues a wide variety of strategies such as concentrated positions, leverage, arbitrage, and stock shorting. These strategies are not for everyone, but are the principal reason hedge funds are able to minimize their correlation to the market.
Typically hedge funds are structured as a limited partnership. Since most hedge funds are privately placed, provincial investment minimums apply. This should be discussed with an advisor. If you wish to discuss one on one, visit http://www.jeffwareham.ca/, or email me at jwareham@mgisecurities.com
Saturday, March 6, 2010
Next Saturday's Show
Thanks for tuning in to Beyond Funds Market Weekly.
Tune in Saturday at 9:30 A.M., for Beyond Funds Market Weekly. I will be continuing my discussion on lessons investors may learn from major pension plans. Many of the most important principles of investing are followed by pension plan administrators, and most traditional mutual fund strategies miss some, if not many, of these principles. Real estate, options, managed futures, commodities, and hedge funds are all financial instruments that may improve the overall risk adjusted return of your portfolio. Pension managers understand these principals, but I rarely see individual investors taking advantage of this opportunity to diversify. Tune in this Saturday, and learn how you, as an investor, may improve your returns, and reduce your risks, by following these basic principles..
Tune in Saturday at 9:30 A.M., for Beyond Funds Market Weekly. I will be continuing my discussion on lessons investors may learn from major pension plans. Many of the most important principles of investing are followed by pension plan administrators, and most traditional mutual fund strategies miss some, if not many, of these principles. Real estate, options, managed futures, commodities, and hedge funds are all financial instruments that may improve the overall risk adjusted return of your portfolio. Pension managers understand these principals, but I rarely see individual investors taking advantage of this opportunity to diversify. Tune in this Saturday, and learn how you, as an investor, may improve your returns, and reduce your risks, by following these basic principles..
Sunday, February 28, 2010
Investing Like a Pension Fund
Thanks for tuning in to Saturday's show.
Tune in this Saturday for Beyond Funds Market Weekly, as I discuss investing like a pension fund. Most major pension funds move beyond traditional bond and stock investments, and include alternative investments. Alternative investment classes increase the expected return of a portfolio, while reducing volatility. Do alternative investment classes fit in your portfolio?
Tune in Saturday at 9:30, and find out.
Tune in this Saturday for Beyond Funds Market Weekly, as I discuss investing like a pension fund. Most major pension funds move beyond traditional bond and stock investments, and include alternative investments. Alternative investment classes increase the expected return of a portfolio, while reducing volatility. Do alternative investment classes fit in your portfolio?
Tune in Saturday at 9:30, and find out.
Saturday, February 20, 2010
Next Saturday's Show
Thanks for tuning in to this week's show. Next Saturday, I will be reviewing another strategy for rebuilding your portfolio after the lost decade. I will be discussing the use of covered call writing as a way to keep your portfolio growing through challenging market conditions. Learn how covered call writing is an easy and disciplined way to buy low and sell high. Very few advisors are talking to their clients about this innovative strategy, so tune in Saturday at 9:30, and find out if it is right for you.
Friday, February 19, 2010
Saturday Morning on AM 980
Tune in to Cheryl Weedmark's show tomorrow AM, and you will hear us discuss my thoughts on Finance Minister Flaherty's announcement regarding changes to mortgage rules in Canada. At 9:30, tune in to my show, as I discuss the value of having one fun or interesting stock in your portfolio. Should be an interesting morning!
Wednesday, February 17, 2010
Add an interesting stock to your portfolio
Tune in this Saturday morning, for Beyond Funds Market Weekly. I have been reviewing ideas for rebuilding your portfolio after the lost decade. Many Canadians own individual stocks in the same major Canadian companies, and there is nothing wrong with that. Your portfolio should likely consist primarily of high quality blue chip equities and bonds. However, I believe it is important to add one or two interesting holdings to your portfolio. By investing in unique companies with significant growth prospects, you may increase your returns, and add excitement to your strategy. Tune in Saturday at 9:30, as I discuss working with an advisor to identify unique growth opportunities.
Saturday, February 13, 2010
Today's show
This week, I focused on using ETFs to rebuild your portfolio after the "lost decade." Just because we have seen dreadful ten year results for equity markets, we should not give up on stocks as a meaningful component of a long term investment strategy. In fact, equities have outperformed all other major asset classes, over the long term. For this reason, I feel it is important to disscuss the options available for investing in equity markets. Larger portfolios have more options; individual stocks and bond positions may be used to achieve proper diversification. For smaller, or even moderate sized portfolios, diversification is more difficult. This may drive you to mutual funds. As I frequently discuss on the show, most mutual funds fail to beat the index against which they are measured. In fact, much of the excess returns associated with equities over other assets is chewed up by the 2.5% management expense typical of a Canadian mutual fund.
Exchange traded funds typically track an index, and have much lower management costs than an equity mutual fund. They give diversification at a much lower cost than a mutual fund. Further, there are many new, specialized funds that offer you exposure to individual sectors,or even bearish feelings about a sector, or the whole market..
Unfortunately, many investors do not get exposed to these alternatives, either because their advisor does not recommend them, or is not licensed to sell them. If you are looking to discuss your options, visit http://www.jeffwareham.ca/, send me an email, or call me at (519) 963-8019.
Exchange traded funds typically track an index, and have much lower management costs than an equity mutual fund. They give diversification at a much lower cost than a mutual fund. Further, there are many new, specialized funds that offer you exposure to individual sectors,or even bearish feelings about a sector, or the whole market..
Unfortunately, many investors do not get exposed to these alternatives, either because their advisor does not recommend them, or is not licensed to sell them. If you are looking to discuss your options, visit http://www.jeffwareham.ca/, send me an email, or call me at (519) 963-8019.
Monday, February 8, 2010
ETFs and rebuilding your portfolio
This week, on Beyond Funds Market Weekly, I continue with my series on rebuilding your portfolio after the lost decade. Traditional mutual funds have rarely beaten the return of the market. For that reason, many investors are choosing a low cost alternative, the exchange traded fund, or ETF. ETFs are a great way to get exposure to the market, but not all are created equal. Tune in Saturday at 9:30, as I discuss ETFs as a part of your long term strategy
Monday, February 1, 2010
adding strip bonds to your portfolio
This week on Beyond Funds Market Weekly, I continue my series on rebuilding your portfolio after the lost decade. If you want to invest for the long term, but have an absolute minimum dollar amount you must have at retirement, you should consider adding strip bonds to your portfolio. Buying a strip bond maturing at your retirement target date may be the simplest way to guarantee you meet your goal. Government strip bonds offer a unique combination of security and yield, and you, as an investor, should sit down with an advisor, and explore how you may use them to guarantee the growth of your portfolio. Tune in Saturday at 9:30, and learn more about using strip bonds as a cornerstone of your portfolio.
Sunday, January 31, 2010
Anti Bank Sentiment a Little Frightening
I have spent a number of years working within the frequently difficult and stifling environment of the Canadian banks. I am no great fan of them as employers, but I must say that I am stunned at the animosity toward banks that is currently pervading political elites around the world. President Obama has them in his gun sights, and is whipping up political fury. Apparently the international conference in Davos, Switzerland, has featured similar sentiment (CLICK HERE). No question that bankers share some of the blame for the recent meltdown, but should they have to hunker down and prepare for a global political assault (CLICK HERE). Most global politicians likely should revisit their first year economics courses...banks actually work with central banks to create money, and it is a very dangerous game to constrain their capital. Love them or not, banks have the ability to support economic growth and stability, in the right regulatory environment. Let's hope global regulators are able, and willing, to temper the fervor of populism.
Wednesday, January 27, 2010
rebuilding your portfolio after the lost decade
Many investors are looking for away to invest in the market with reduced risk to their principal. This has led to a surge in guaranteed withdrawal benefit plans and segregated funds. Tune in Saturday morning at 9:30, for Beyond Funds Market Weekly. I will continue my series on rebuilding your portfolio after the lost decade. This week, I will discuss the role that segregated funds may play, particularly if you wish to invest in equities, but are worried about losing your principal, .Segregated funds are not for everyone, but they may have a place in your portfolio
Monday, January 25, 2010
Segregated Funds
Tune in Saturday morning at 9:30, for Beyond Funds Market Weekly. I will continue my series on rebuilding your portfolio after the lost decade. This week, I will discuss the role that segregated funds may play, particularly if you wish to invest in equities, but are worried about losing your principal.Segregated funds are not for everyone, but they may have a place in your portfolio.
Saturday, January 23, 2010
Another Portfolio Rebuilding Strategy
As I mentioned on today's radio segment, I believe convertible debentures are an excellent component of a portfolio damaged by the weakness of the past decade. Wikipedia does a great job of describing these vehicles (Wikipedia article), so if you want a quick lesson, read the article. I think they are a great way to get back "in the market," while increasing the3 yield in your portfolio.
Friday, January 22, 2010
Utilizing Convertible Debentures
This week, on Beyond Funds Market Weekly, I am continuing with my series on rebuilding your portfolio after the lost decade. Last week I discussed bonds, and their important role they play in protecting your portfolio from market volatility. Unfortunately, many bonds are offering yields barely above inflation. One bond alternative I like is utilizing convertible debentures. Tune in tomorrow,and I will explain how these may give you the upside of bonds,and protect you from the downside of stocks
Wednesday, January 20, 2010
Convertible Debentures
Over the past few weeks, I have been discussing rebuilding your portfolio after the lost decade. This week, I will be discussing convertible debentures as a way to grow your wealth. When stocks go up, debentures benefit from their conversion priviledge. When stocks go down, debentures may retain value better, because they earn interest, and are ahead of stocks on a company's balance sheet. Despite the advantages, few investors take advantage of the opportunity they present, Tune in Saturday to learn more.
Monday, January 18, 2010
Bonds Play a Critical Role
On Saturday, I discussed the critical role that bonds play in a well constructed investment portfolio. Strip bonds and corporate bonds can both significantly enhance the return you earn, while protecting you from the volatility of the stock market. If you have not looked at the value of adding bonds to your portfolio, why not give me a call, and get a decond opinion?
Friday, January 15, 2010
Bonds
This week I have been talking about the benefit of diversification. Tomorrow, I will discuss a second key theme for rebuilding your portfolio after the lost decade. Bonds are a key element of a properly diversified portfolio, and I believe that their role is often misunderstood. Bonds may significantly reduce your risk, and provide income during difficult times. Tune in tomorrow at 930, and I will iscuss how bonds fit into your long term strategy.
Wednesday, January 13, 2010
"Diversification is more than buying a bunch of global mutual funds"
Conventional investment wisdom is frequently flawed. Over the past decade, we have seen the Canadian dollar strengthen, and stocks around the world floundering. Global equity mutual funds have been hit hard by this double negative. As a result,you may have lost money, especially if you followed the traditional approach of buying a number of global equity funds for diversification. Quite simply, the time has come to recognize that diversification is more than buying a bunch of global mutual funds. If you are wondering if you need a second opinion, give me a call.
Monday, January 11, 2010
The Important Role of Diversification
On Saturday, i discussed the important role of diversification in rebuilding your portfolio. Diversification allows your portfolio to grow through difficult market conditions, and can protect you from the wild swings in equity markets. Many portfolios I review are made up of several equity oriented mutual funds. This is not diversification. Bonds, cash, preferred shares, real estate, and even options all have their place in a well constucted portfolio. If you think that your portfolio needs a second opinion, give me a call.
Sunday, January 3, 2010
Time to Rebuild
2009 is over, and with it's end, we have seen the conclusion of one of the worst decades in stock market history. The lost decade has damaged many retirement plans, but there are real, meaningful steps you can take to rebuild your portfolio. I have prepared a series of strategies that are designed to help you get back on track after the gruelling bear markets of the past decades. If you would like to review these unique ideas, give me a call at 519 963 8019.
Saturday, January 2, 2010
10 themes for 2010-recovering from the lost decade
Over the next few weeks,I will be sharing a number of ideas for rebuilding after the last ten years:
1) Diversification means more than just stocks from around the world
2) Move up the balance sheet…consider bonds
3) Learn about convertible debentures as a stock alternative
4) Seg funds make sense to keep you in the market and secure your retirement income
5) Guarantee your principal with a strip bond
6) Look at ETFs as a mutual fund alternative
7) Buy at least one fun or interesting stock this year
8) Use covered calls to generate income
9) Look at a hedge fund for diversification
10) Take a serious look at the cost and performance of your mutual funds
Stay tuned...
1) Diversification means more than just stocks from around the world
2) Move up the balance sheet…consider bonds
3) Learn about convertible debentures as a stock alternative
4) Seg funds make sense to keep you in the market and secure your retirement income
5) Guarantee your principal with a strip bond
6) Look at ETFs as a mutual fund alternative
7) Buy at least one fun or interesting stock this year
8) Use covered calls to generate income
9) Look at a hedge fund for diversification
10) Take a serious look at the cost and performance of your mutual funds
Stay tuned...
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