When Bond Yields Throw You a Curve
In my previous post, I explained the flaw in the conventional advice about shifting to short-term bonds if you expect interest rates to rise. While it’s true that bond prices fall when yields go up (t [...]
Bonds Behaving Badly
There are a couple of basic rules bond investors can depend on. The first is that bond prices fall when interest rates rise, and vice-versa. The second is that long-term bonds are vulnerable to larger [...]
How much of my investments should be in gold?
While the yellow metal can lower your volatility, it will probably also reduce your expected return. [MoneySense]
Amid market volatility, GICs can provide a much-needed refuge
GICs have a place in almost any balanced portfolio, where they can be a complement to bonds. [Globe and Mail]
Couch Potato Portfolio Returns for 2017
They contained no marijuana stocks and no bitcoin, but the Couch Potato portfolios put up another good year in 2017. Once again, investors were rewarded for simply following a disciplined, low cost, b [...]
Bond Basics 3: Should You Wait for Higher Yields?
In my last podcast, I set out to answer a series of common questions about bonds. Here’s one I’ve been hearing on and off since 2009: “With yields so low now, is it even worth it to invest in bonds? W [...]
Bond Basics 2: Why Your ETF Isn’t Losing Money
In my latest podcast, I answer a series of frequently asked questions about bonds. The second of these came from a reader named Andrew: “I have been investing using your Couch Potato strategy for just [...]
Couch Potato Portfolio Returns for 2016
If you believe the media, 2016 was an annus horribilis: some even dubbed it the worst year ever. I think there were a few years during the Great Depression or World War II that might have been worse, [...]
Cost Versus Convenience in “ex Canada” ETFs
I used to own one of those one-piece cutlery tools designed for hiking and camping—the kind with a knife, fork and spoon that all fold into a single unit. It was hardly ideal for eating, especially if [...]
The Real Problem With Inflation-Protected Bonds
When I announced my stripped-down model portfolios at the beginning of last year, one of the asset classes I dropped was real-return bonds (RRBs). Part of the reason was simplicity: it’s easier to man [...]
