Should Rate Hikes Worry You?

This past week the Bank of Canada raised interest rates by another quarter point or 0.25%. That small change didn’t seem like much, but the Bank of Canada prime rate now sits at a measely 1.25%. Still low for historical reasons. The commercial banks followed suit with most major banks raising their prime lending rates…

Keep Fixed Income Assets In Your Portfolio

The S&P 500 is up 15.3% year-to-date. The TSX is up 4.3%. Even a basket of non North American stocks is up 15.9%. Those are some gaudy numbers for the stock market. Anyone that is holding an equal weighting of these stock indices would easily be up over 10% for the year up to this…

Why Bonds Might Not Be The Best Investment For 2017

I’ve written about bonds before and what they represent. Essentially a bond is just an “I owe you” with a promise to return the face value back to you at a particular date. The benefit of holding a bond is that you get to collect interest payments based on the fixed percentage that is set…

The Long And Short On Bonds

In any good investment portfolio it’s a good idea to have some bonds in it to help stabilize the volatility from stocks and equities. Bonds are a good way to ensure that stock market crashes don’t wipe out your entire investment portfolio. The reason for this is that bonds, in general, have a negative correlation…

Pre-Halloween Scare

Over the last month the markets took a turn for the worse. The S&P 500 has been down 4.5%, the Nasdaq has shed 6.8% and the S&P TSX has lost 8%. It seems like the markets have been spooked by the approach of Halloween. The critics and doubters of the stock market are out again…

Real Return Bonds

I’ve written before about how inflation can destroy wealth. Unfortunately, just saving is not enough to meet our future retirement needs. Money needs to grow and it needs to grow faster than inflation, otherwise you’re just in a losing race against time. Fortunately, there are many ways to protect against inflation without the need to…

Simple Steps To Rebalancing An Investment Portfolio

Just like keeping that good ole’ car running on the road, a good investment portfolio needs tender, love and care. ¬†Despite the buy and hold mantra, a good investment portfolio needs to be rebalanced every so often to achieve the returns that the original portfolio was set up to achieve. ¬†It’s just like tuning up…