Estimating Future Stock Returns
What are the long-term expected returns for stocks? That’s a fundamental question every investor needs to consider when deciding on an appropriate asset allocation. Unfortunately, it’s not a question [...]
What are the long-term expected returns for stocks? That’s a fundamental question every investor needs to consider when deciding on an appropriate asset allocation. Unfortunately, it’s not a question [...]
Last week’s post about Monte Carlo simulations in financial planning sparked some interesting comments, so I thought a case study would help readers see how they work. Our real-life example comes from [...]
When I wrote the MoneySense Guide to the Perfect Portfolio [now out of print], I waited until Chapter 5 before I started discussing specific ETFs and index funds. That was a deliberate decision, becau [...]
If your investments include RRSPs, TFSAs and taxable accounts, asset location is an important consideration. The returns of various asset classes—such as bonds, Canadian stocks, and foreign stocks—are [...]
Readers often ask me whether the Couch Potato strategy is suitable for investors  approaching retirement, or even those who have stopped working. In his recent book, Retirement’s Harsh New Realities, [...]
Q: I am ready to follow the Couch Potato and would like to use the US-listed Vanguard ETFs that you recommend in your model portfolios. But when I checked with my accountant, he warned me that I could [...]
My last couple of posts have dealt with stock picking and dividend-based indexes, and they’ve sparked some of spirited debate in the comments sections. Much of the feedback has come from dividend inve [...]
Asset allocation is more art than science. There are no immutable laws to tell you what proportion of stocks and bonds should be in your portfolio. The best you can do is adopt rules of thumb. “Make y [...]
John Lawrence Reynolds' newest book, The Skeptical Investor, argues that Canadians were badly served by their advisors during the crash of 2008–09. The book has all the wit and outrage of his previous [...]