Investment Wisdom
Irrational Pessimism?
“It was impossible to get a conversation going; everybody was talking too much.” – Yogi Berra In 1996, Fed Chairman Alan Greenspan coined the term “irrational exuberance” to describe what he felt was unjustified speculation in the stock market as the S&P 500 rose past 744. Now, 12 years later, the S&P500 has moved past…
Read MoreHow to Take Advantage of the Market After the Crash of 2008
“It’s never happened in the World Series history – and it hasn’t happened since.” – Yogi Berra 2008 was a difficult year, producing results not seen in recent history. In past bear markets, some sectors and significant groups of investors still made money. In 2008 only 4 of 3,438 equity mutual funds showed a profit.…
Read MorePeak Oil or Oil Bubble?
“No one goes there anymore – it’s too crowded.” – Yogi Berra Tired of high gas prices? They have risen sharply because oil prices have shot up from $10/barrel in 1990 to $20/barrel in 2002 to $60/barrel in 2005 and now to $145/barrel in 2008. Is this just a temporary spike or just the…
Read MoreIs the Market Efficient? Understanding the Efficient Market Hypothesis (EMH)
Efficient Market Hypothesis
Read MoreIs “Management Integrity” an Oxymoron?
Warren Buffet said: “In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don’t have the first, the other two will kill you.” The story of Conrad Black, as told in the media, is of a very intelligent and energetic manager that used his skills to benefit…
Read MoreIs 100% Tax-Efficient Investing Possible?
One of the 3 D’s of tax savings is Defer. Paying tax some time far in the future is much better than paying tax now. One of the most effective ways of getting huge, compound growth in your portfolio is to pay as little tax as possible along the way. This is why RRSP investments…
Read MoreStock Market Beliefs – Part 2
In part 1, I listed 20 commonly believed myths that Ken Fisher disproves, and 3 commonly held beliefs where he proves the opposite is true. Here are a couple of examples of his stats and a review of the rest of this extremely insightful book. The stats show that in the 9 years with the…
Read MoreStock Market Beliefs – Part 1
Every once in a while, I come across a truly fascinating book. I love reading financial and investment books. I’ve read most of the major books in the stores and try to read at least one on each theme. But it is rare to come across such an insightful book. Read more…
Read MoreLeveraging into equities – The only source of wealth?
I was browsing through Forbes latest list of the 400 richest Americans and it occurred to me that they almost all made it there the same way. Basically, the ONLY way they made it super-rich is by leveraging into equities! Read more…
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