Feature Article: Diversification Drives Higher Expected Returns
Securities have different expected returns. When researchers examined historical data looking for what causes these differences in average returns, they found the answer in variables like company size, relative price, and profitability. Research has confirmed that these variables offer premiums which persist across time periods and markets. Furthermore, these higher expected returns can be captured in real-world portfolios in a cost-effective manner. Read more . . .
Tax highlights from the latest
Federal and Saskatchewan budgets.
Understanding the Management Expense Ratio (MER)
Dimensional Fund's David Booth answers a common question:
How long do I have to wait until my investment strategy pays off?
How Have Markets Historically Reacted to US Presidential Elections?
With election results south of the border taking almost everyone by surprise, many are now wondering how the markets are going to react. Vanguard has released a (comforting) video which draws on research going back to 1853.
To briefly summarize, historically, stock market performance has been similar no matter which party has won a presidential election. In the short term, however, markets react to uncertainty, and there has been a predictable pattern 100 days leading up to an election, and 100and 200 days after an election. Markets are more volatile just before an election but the volatility stabilizes in the 200 days after an election.
Growth of $1 Invested in the Stock Market from 1927 to 2012
Watch this 3 minute video tracking the growth of one dollar invested in US equities from 1927 to 2012. Time Magazine covers featuring major events over the course of decades are superimposed on the graph as it climbs towards nearly $3,000.
What Happens to $1 Over Time? as posted by Loring Ward on YouTube
From the Sensible Investing TV eight part series entitled: Passive Investing--The Evidence.
This video -- the first in a series of eight entitled Passive Investing: the Evidence -- describes how the £4 trillion invested by UK fund managers more often than not produces a below-average return and fails to match, never mind beat, the average market return over the long term. Are the fund managers as smart as they like to think they are? Financial gurus John Bogle, Charles Ellis and Ken French, amongst others, think not.
Having a More Successful Investing Experience:
Articles Published by
Our Advisors in Sask Business Magazine & Business Advisor
Daryn Form, Jason Sirman, and Dale Berg take turns writing a monthly column in Sask Business Magazine and quarterly in Business Advisor. The articles cover various aspects of investing: investment strategies, common mistakes made by investors, and how to overcome detrimental investor behaviour.
Click on article title to read more . . .