# Articles worth checking out



## CanadianCapitalist

Fellow bloggers and I typically link to interesting articles we read during the week but sometimes there isn't enough time or space to link to all the articles we found interesting. In this thread, please post any article / column you find interesting in your web travels.


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## CanadianCapitalist

Tom Bradley in the G&M:

*'It will sell': A tipoff for bad investment products*



> I liken structured products to Viagra. The industry is hooked on them because they stimulate sales. They're a specialty product that should be used by few, but are sold to many. And the buyers get instant gratification, but pay for it in the long run.


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## The_Number

I don't know what the board's policy on live links. So here it is:



Code:


http://www.rollingstone.com/politics/story/26793903/the_big_takeover/1

I don't necessarily agree with the article, but it's an interesting read nonetheless.


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## MoneyEnergy

*Worst of Times Might Be the best of Times to Take Off* - all about jobs that pay you to go on "sabbatical" - nice, makes me consider leaving academia...


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## CanadianCapitalist

*Is Your Investing Personality in Your DNA?
* by Jason Zweig in The Wall Street Journal.



> The contrast between the raw material of my genes and the final output of my behavior isn't unusual. Perhaps 20% of the variation in risk-taking among individuals is genetically determined; the rest comes from our upbringing, experience, education and training. So, while my genes bias my brain toward spooking easily and trying to make a quick buck, that isn't how I actually behave. I hold investments for years, even decades; I don't panic in bear markets, and bull markets make me uncomfortable.
> 
> Those habits, I now understand for the first time, don't come naturally to me. I have been fighting my genes for years, and the reflective parts of my brain have been struggling to rein in my emotions for a lifetime.


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## CanadianCapitalist

Not sure I agree entirely that a new method of calculating S&P earnings is needed when the current method works just fine as long as you understand the limitations.

*How Cheap Is the Market?*



> The true valuation of the market is no where near as dismal as the aggregate earnings reported by Standard & Poor's suggest. When portfolios of stocks are weighted by market values, the market is cheap by historical standards. No one can say for sure whether March 9 will mark the bottom of this dismal bear market (I personally think it will), but I am sure that investors who hold a diversified portfolio of stocks today will be rewarded by above-average returns.


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## Rickson9

CanadianCapitalist said:


> *Is Your Investing Personality in Your DNA?
> * by Jason Zweig in The Wall Street Journal.


Very interesting! I have often suspected as much!

When I speak about value investing I only get 2 reactions:
1. immediate understanding
2. are you speaking English?

I have never met somebody who was #2 who later 'learned' to become #1.

This is likely related to the saying that the very poor think day-to-day, the poor think week-to-week, the middle-class think month-to-month and the rich think year-to-year and the very rich think decade-to-decade


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## CanadianCapitalist

*Hope, Greed and Fear: The Psychology behind the Financial Crisis*



> To explain the current economic crisis, the world of finance has a particular lexicon -- including, for example, credit default swaps, mark-to-market and securitized subprime mortgages. Psychologists, on the other hand, might use very different terms: hope, greed and fear.
> 
> The language of psychology helps to address the fact that behind every cut-and-dried statistic about falling home prices and other indicators of economic decline, lies an ever-shifting horde of homeowners, bankers, business owners, unwitting investors -- in short, people. And people often pay no heed to fine-tuned economic models by doing things that are not rational, are not in their best interest, and are justified not by numbers -- but by emotion.


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## CanadianCapitalist

There is a persistent myth that markets took 29 years to bounce back after the Great Depression. Mark Hulbert provides three reasons why in this article:

*25 Years to Bounce Back? Try 4½*


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## CanadianCapitalist

Pair of interesting columns in the Globe & Mail today:

Rob Carrcik - *Say adios to money market funds*

John Heinzl on the lessons from the Madoff scandal: *Scam watch: If it seems too good ...*


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## CanadianCapitalist

*Alternative Investments in stamps and comic books*

Richard Morrison suggests stamps and comic books as investments:

*Holy investment opportunity, Batman*

*Stamps give stocks a licking*

It is silly to think of stamps or comic books as investments. My feelings were best summed up by this quote:



> Hervé St-Louis, publisher of Comicbookbin.com, a Calgary-based Web site dedicated to comic book fans and collectors, said those who want to invest in comics should abandon the idea and put their money into stocks or real estate.
> 
> "Forget the money aspect of comic books," he says. "Only buy what you like and pass it on to your kids."


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## CanadianCapitalist

*There’s Hope in Those Dividends*



> Companies that have managed to increase their payouts in this tough economic climate may be a good target for a time-tested conservative investment strategy: buying shares of solid dividend-payers.
> 
> Over the long run, this approach has outperformed the stock market. Since the end of 1979, investing in dividend-paying stocks in the S.& P. 500 would have earned you 11.6 percent a year, on average, on a total return basis, versus 10.5 percent for the overall index. And the ability to sustain dividends is often regarded as a sign of a solid company, even in the current environment.


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## Rickson9

*(VIDEO) Interview With Ben Bernanke*

"Federal Reserve Chairman Ben Bernanke candidly speaks to Scott Pelley about his personal life, as both visit his old high school and how the current financial crisis is affecting Main Street America."

Part 1
http://www.cbsnews.com/video/watch/?id=4866969n

Part 2
http://www.cbsnews.com/video/watch/?id=4866987n


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## CanadianCapitalist

*A Back-to-Basics Weekend With Warren Buffett*



> “If you have a 150 I.Q., sell 30 points to someone else. You need to be smart, but not a genius.”
> 
> So said Warren Buffett, the world’s most famous value investor, at Berkshire Hathaway’s annual meeting here on Saturday, a regular pilgrimage for some 35,000 shareholders that many call Woodstock for capitalists. This year there wasn’t as much free-flowing love, given what a difficult year it’s been for capitalists, Mr. Buffett included.


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## CanadianCapitalist

*How the crisis is changing you*



> A new set of American values is emerging from the ashes of 600,000 layoffs a month, a lost decade in stocks, and the worst housing crash ever. These values may ring familiar to anyone who lived through the Great Depression. But for most of us it amounts to a large-scale makeover of the way we think about money and life.
> 0:00 /4:35'Bling is bad'
> 
> We're not just cutting our bills, we're rejecting materialism. We're placing safety and intrinsic rewards like relationships and personal growth ahead of profit. We're embracing family and community and asking how we can help others, not just ourselves.


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## Cal

Canadian Banks:

http://marketdepth.typepad.com/marketdepth/2009/06/sell-the-banks.html


Goldman Sachs:
http://zerohedge.blogspot.com/2009/06/goldman-sachs-engineering-every-major.html


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## Cal

http://www.dailykos.com/storyonly/2...ry-Reverberates-Throughout-Wall-St.-(w-update)

I hope that link works. It is about the GS super computer program that was stolen/taken by a previous employee to a rival bank.

If GS feels that this program is potentially dangerous in the wrong hands....and capable of market manipulation...then why should the gov't let any company use such a program. It sounds pretty dangerous.

I heard Kevin O'Leary discussing on BNN a what if...the gov't instituted a capital gains tax based on how long an stock was held (the longer it is held the less taxed on gains) to defer banks from trading a billion shares in a second (buy and sell) to manipulate prices, profits. He figured the TSX would be cut in half in 1 day if these companies could not use such a program to trade large volumes on units in fractions of a second.

I can't remember what a % of the S&P trading was done by GS, but he said that 36% of the futures trading was GS.

Makes me wonder why the average guy even tries, if it isn't even a level playing field.


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## CanadianCapitalist

Does Stock-Market Data Really Go Back 200 Years? 



> What, then, are the odds that stocks will continue to lag behind bonds for the long run? The sad truth is that history can't tell us the answer. The 1802-to-1870 stock indexes are rotten with methodological flaws. So we have only the period since then, or four distinct and complete 30-year stretches of stock returns, to base our long-term investment decisions on.
> 
> Another emperor of the late bull market, it seems, has turned out to have no clothes.


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## CanadianCapitalist

*Insurers drive up rates for motorists*



> Get ready to pay more – potentially much more – for auto insurance.
> 
> Ontario motorists face the biggest increases in insurance premiums since the province temporarily froze premiums in late 2003.
> 
> The latest round of increases approved by regulators has brought the average increase over 12 months to 7.8 per cent, with some insurers raising rates by twice as much.


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## Cal

*Recession over*

http://thenumberstheydontpublish.blogspot.com/


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## Cal

Speed pays on stock market - Toronto Star July 25, 2009

http://www.thestar.com/business/article/671628

Doesn't really seem fair to the average investor does it? I have heard Kevin O'Leary talk on BNN saying there might be a capital gains tax based upon how long you hold the stock....like a tax at 80% if you hold the stock for <24 hours or something. He figured that it would cut the TSX in half in about a day there was so much of this computer program trading going on. A 164% increase in trading volume in 3-4 years does seem like alot. Perhaps it would be a good way for the gov't to get some tax $ form the banks instead of us. I can't see them making these computer programs illegal to use. 

Any thoughts?


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## CanadianCapitalist

*A Boot Camp to Prepare for Retirement*



> Marcia Tillotson and Joy Kenefick aren’t your typical drill sergeants.
> 
> They run what they call a retirement boot camp, aimed at making sure their investment clients who are contemplating retirement know exactly what they’re getting into. The exercise focuses primarily on finances — after all, the two women are partners in a financial advisory practice that is part of Wells Fargo Advisors in Charlotte, N.C.


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## CanadianCapitalist

Jason Zweig in the WSJ:

*Under the 'Emerging' Curtain*



> Based on decades of data from 53 countries, Prof. Dimson has found that the economies with the highest growth produce the lowest stock returns -- by an immense margin. Stocks in countries with the highest economic growth have earned an annual average return of 6%; those in the slowest-growing nations have gained an average of 12% annually.
> 
> That isn't a typo. Over the long run, stocks in the world's hottest economies have performed half as well as those in the coldest. When Prof. Dimson presented these findings recently in a guest lecture at a Yale University finance program, "a couple of people just about fell off their chairs," he says. "They couldn't believe it."


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## Serviss

*2nd Quarter Market Update*

Hello all

Our friends at Cardinal Capital have provided an insightful outline of the current media hoopla. To read more about the power of dividend investing see: www.serviss.ca/marketupdate.html 

Here you will find an innovative firm specializing in wealth accumulation as well as creative insurance strategies for business owners.


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## Robillard

Ben Bernanke answered questions in a townhall-style meeting in Kansas City, Missouri today. If you are interested in reading the transcript or downloading the audio feed, it can be found here: http://www.pbs.org/newshour/bb/business/july-dec09/bernanke_07-27.html


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## Cal

http://www.thedividendguyblog.com/should-you-re-invest-your-dividends/


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## Cal

http://www.nickelrant.com/

Ok, so its not an article, but the blogger does provide posts to all of his comments.


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## Cal

US Treasury in Trouble....

http://www.doomdaily.com/2009/the-united-states-has-officially-hit-the-treasury-debt-wall/


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## Cal

http://www.howestreet.com/articles/index.php?article_id=10405

Catchy headline....no facts to back it up....at least not officially until the last week of Aug...


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## Cal

Bob Prechter video:

http://finance.yahoo.com/tech-ticke...Q,^RUT,BGZ&sec=topStories&pos=9&asset=&ccode=


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## Cal

Video of Elizabeth Warren, head of the US Congressional Oversight Panel speaking about the true state of US banks’ toxic assets due to mark-to-magic and the pending doom of commercial mortgage resets:

http://www.msnbc.msn.com/id/22425001/vp/32385463#32385463


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## Cal

American Dividends

http://www.marketwatch.com/story/stock-dividends-make-a-difference-2009-08-08-2328170


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## Cal

Earnings Are a Load of Nonsense

Earnings season has always been a crapshoot largely because of the nature of our financial system. To whit, we have accountants whose jobs consist entirely of finding ways to minimize taxes and eek out profits from even the flimsiest of circumstances (financial firms have become masters of this). 

Indeed, it’s common practice for companies to prepare TWO tax statements, one that is released to the public and another that goes to the IRS. The IRS version usually features numerous tax dodges such as shifting revenues to tax havens/ off shore subsidiaries, as well as phony accounting charges and the like. Consider the below chart comparing individual income tax receipts (blue line) and corporate tax receipts (red line) for the last 50 years and tell me which group has an accounting department devoted to finding every tax loophole possible.

After the accountants get through with “cooking the books,” corporate earnings are then supposed to be accurately forecast by Wall Street analysts, most if not all of whom, work for firms that make millions performing mergers/ acquisitions/ IPOs and other investment banking deals with the very companies the analysts are supposed to be objectively covering. 

We then have institutional investors who invest based on the analysts’ views which are based on the accountants’ voodoo (the institutions themselves usually have relationships with the analysts’ firms as well). And then we have the public, whose funds are either invested with the institutions OR are whipsawed and destroyed by the institutions moves.

All of these moves have become exacerbated by the US’s decision to abandon anything remotely resembling accurate accounting standards. Nowhere is this more evident that in the financials sector. 

Most commentators were ecstatic that banks such as Goldman Sachs reported stellar 1Q09 earnings. They’re equally thrilled that Goldman et al are so far producing strong results this quarter too (Goldman’s 2Q09 results released yesterday beat expectations). However, no one seems to bother looking at where these “earnings” are coming from.

The banks’ 1Q09 results were largely the result of accounting gimmicks, NOT actual money being made. The most obvious gimmick involved marking down debt and recording the mark down as a profit.

In laymen’s terms, banks had issued bonds to investors (the banks get the investors’ money, the investors get a bond with a certain yield). These bonds have since fallen in value. So the bank is claiming that because it could repurchase the bonds at lower prices (pocketing the difference between the lower price and the initial higher price the investors paid), that these bonds could be recorded at a profit.

Take a moment to let that sink in... The banks DID NOT actually buyback the bonds (they couldn’t even if they wanted to since they doesn’t have the funds), so they’re merely claiming that they COULD do this if they WANTED to. 

Using this kind of logic, someone could claim that they made $3 million last year because technically they could rob every store they’ve ever spent money at during their lifetime in order to recoup their earnings. There’s a word for this type of thinking; it’s called insanity.

Aside from this, financial firms have posted profits based on all kinds of other accounting fraud including but not limited to: marking junk assets at super inflated levels, papering over real losses with one time charge-offs, and more. 

Heck, even the alleged best of the bunch (Goldman Sachs) now openly admits that their trading programs can manipulate markets and that they received $13 billion in taxpayer money while hedging against their AIG exposure (essentially making the $13 billion a freebie that Goldman could play around with for a few months). 

If those two items alone aren’t enough proof that profits from banks and other financials are a load of bunk, consider that Goldman insiders sold nearly $700 million in stock at the SAME TIME they were receiving bailout money. If the guys inside the firm are cashing out while receiving OUR money, what does that say about the stability of their firm… not to mention the abject failure of the SEC to do anything resembling real regulation.

Bottomline: earnings, especially financials’ earnings are a load of nonsense. 

The fact that however many companies beat earnings estimates in 2Q09 is irrelevant. You might as well say 70% of companies beat an imaginary number. Anyone betting on a strong 3Q09 or 4Q09 is in for a REAL surprise.

Good Investing!

Graham Summers


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## 411guy

What's the Minimum I Need to Retire?

http://finance.yahoo.com/focus-reti...m-i-need-to-retire?mod=fidelity-readytoretire


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## CanadianCapitalist

The Greenback Effect by Warren Buffett:



> The butterfly effect reaches into the financial world as well. Here, the United States is spewing a potentially damaging substance into our economy — greenback emissions.


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## Maltese

411guy said:


> What's the Minimum I Need to Retire?
> 
> http://finance.yahoo.com/focus-reti...m-i-need-to-retire?mod=fidelity-readytoretire


This was an interesting article - especially the part where it said the retiree would receive $30,000 from Social Security. I was surprised this amount was so high as I'd always thought that Social Security amounts were similiar to those paid by Canada's combined CPP & OAS.


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## Cal

BMO insolvent???


http://www.stockgumshoe.com/2009/08/the-next-major-bank-stock-set-to-crash-dan-amoss.html


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## CanadianCapitalist

From Leith Wheeler:

The Role of Bonds in a Portfolio: Not Just a Cameo



> One thing lost in the bull market that preceded the credit crisis was the role that fixed income plays in a portfolio.Investors became accustomed to the starring role of equities as they delivered seemingly “risk free” double digit returns. The relatively low single digit returns from bonds became increasingly unappealing, causing some investors to reduce or eliminate fixed income altogether from their investment portfolio. What was overlooked during this period was that bonds have lower long term returns than equities because of the much greater certainty of both the amount, and the timing, of returns. As a result, bonds outperform riskier assets in times of economic or financial stress as recent experience has shown. For example, despite the recent rebound in equity markets, bonds have still managed to outperform equities by a large margin over both the last one and two year time periods. This is a stark reminder of the role that bonds play in a portfolio and the importance of keeping a portfolio in line with its appropriate long term asset mix.


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## CanadianCapitalist

Cal said:


> BMO insolvent???
> 
> 
> http://www.stockgumshoe.com/2009/08/the-next-major-bank-stock-set-to-crash-dan-amoss.html


Now that Manulife has opened the floodgates, I wouldn't be surprised if a bank cuts its dividend. With a relatively high payout ratio, BMO does seem to fit the bill.


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## Cal

http://www.zerohedge.com/article/full-kaufman-letter-mary-schapiro

These HVTP's really do make for a two-tiered investing system.


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## Cal

Crazy how after the BMO rumor came out the stock was shorted 23 times normal (daily basis) the day before their Q results.


A couple of links on the HVTP's:

http://www.zerohedge.com/article/themis-trading-hft-adds-liquidity-defense


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## CanadianCapitalist

CanadianCapitalist said:


> Now that Manulife has opened the floodgates, I wouldn't be surprised if a bank cuts its dividend. With a relatively high payout ratio, BMO does seem to fit the bill.


Good thing I don't take my crystal ball seriously, much less act on rumours. Shorts would have been slaughtered with these strong bank results.


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## Cal

More HVTP info....sorry that it is American though...

http://www.gainspainscapital.com/in...e&id=129:just-who-was-buying-this-rally-again


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## CanadianCapitalist

Read car-rental terms carefully to avoid extra costs, Ellen Roseman in The Star.



> When renting a car, do you read the rental agreement carefully before driving off?
> 
> If not, pay heed to this story.
> 
> Jacqueline Boone, who lives in England, had an accident in a rented car while visiting Toronto in 2006. While driving out of an underground parking lot downtown, she swerved to avoid a head-on collision with a car coming down and hit a wall.


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## CanadianCapitalist

Rob Carrick, Globe and Mail, The do-it-yourself escape plan



> If it's time to bid adieu to your investment adviser, here's how to transfer your portfolio and manage your wealth online


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## Cal

7 Lessons from the Meltdown - Wealthy Boomer

http://network.nationalpost.com/np/...ive/2009/09/09/lessons-from-the-meltdown.aspx


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## Rickson9

Cal said:


> 7 Lessons from the Meltdown - Wealthy Boomer
> 
> http://network.nationalpost.com/np/...ive/2009/09/09/lessons-from-the-meltdown.aspx


Another great lesson is to invest in stock during and after a market meltdown! That's the best advice of them all!


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## Cal

ARE WE GETTING CLOSER...TO SOMETHING?

http://www.zerohedge.com/article/are-we-getting-closer-something


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## Cal

A little bit of everything...

video

http://maxkeiser.com/2009/09/11/ote18-on-the-edge-with-rob-kirby/


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## CanadianCapitalist

Don’t Believe the Hype About Gold -- Larry Swedroe



> If you’re going to invest in gold, you should consider this advice from Charles Ellis: “Learn from deer hunters and fishermen who know the importance of ‘being there’ and using patient persistence — so they are there when opportunity knocks.”


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## CanadianCapitalist

Common Mistakes Even Smart Investors Make



> As chief investment strategist of Legg Mason Capital Management, Michael Mauboussin's job is to understand the world and then make money off of it. What he's found over the years is that investors, like any other group of people, are prone to make mistakes that stem from faulty approaches to decision-making. In Think Twice: Harnessing the Power of Counterintuition, Mauboussin — also an adjunct professor of finance at Columbia Business School — pulls from fields such as psychology, statistics and complexity science to explain how we might do better.


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## Cal

Macleans article:recession to continue:

http://www2.macleans.ca/2009/10/02/why-the-recession-is-here-to-stay/


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## takingprofits

*5 Things to Consider Before Buying and Holding*

From Seeking Alpha - 5 Things to Consider Before Buying and Holding


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## takingprofits

"What is undeniable is the myth that any small investor can become the next Warren Buffett by employing the techniques of Graham and Dodd. If only it were that easy."

The many myths of Warren Buffett


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## Cal

Why Dividends Matter Article:

http://www.theglobeandmail.com/glob...ducation/why-dividends-matter/article1481292/


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## Bank Guru

takingprofits said:


> "What is undeniable is the myth that any small investor can become the next Warren Buffett by employing the techniques of Graham and Dodd. If only it were that easy."
> 
> The many myths of Warren Buffett



Great article!


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## CanadianCapitalist

Steve Forbes chats with Mohnish Pabrai



> You know, actually, I think that the way the investment business is set up, it's actually set up the wrong way. The correct way to set it up is to have gentlemen of leisure, who go about their leisurely tasks, and when the world is severely fearful is when they put their leisurely task aside and go to work. That would be the ideal way to set up the investment business.


Hat tip to the Stingy Investor.


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## Mockingbird

RBC Direct Investing is ending the practice of forced automatic currency conversion charges in registered accounts.

Currency fees in your RRSP just got lower


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## MoneyGal

Nice article in yesterday's New York Times on the dangers of choosing mutual fund investments based on past performance...plus a tip about the single factor that REALLY influences a mutual funds' performance over time!


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## Taxsaver

CanadianCapitalist said:


> Don’t Believe the Hype About Gold -- Larry Swedroe


Gold was at around $880. Now it's at $1400. Lots of people are glad they did not follow his advice. I guess he never wrote an article saying how was wrong he was and with some apologies...


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## CanadianCapitalist

Taxsaver said:


> Gold was at around $880. Now it's at $1400. Lots of people are glad they did not follow his advice. I guess he never wrote an article saying how was wrong he was and with some apologies...


First of all, Larry Swedroe wasn't making a call on the direction of gold prices. He was commenting on whether it is sensible for long-term investors to pile into an asset class after a period of very strong returns. Just because gold is still going up doesn't mean Swedroe is wrong.


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## Assetologist

*Essentials Portfolio in GAM today*

This article in the GAM today supports my personal core equity investment philosophy. 

My core is large, Canadian, dividend-growing common shares held in non-registered accounts. I personally have not been as stringent in the 'essentials' selection criteria but it makes excellent sense. 

I started a synthetic DRIP last year and still the fence abut it's efficiency as I place much more weight on more tactical asset allocation then blind dividend reinvestment but I would have to say that it is amazing how quickly one acquires now shares through a DRIP. 

I also agree with the 'no bonds' position.


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## plen

*Tech Stocks on Fire*

Tech stocks on fire

Does anyone who is indexing have faith in Nasdaq?


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## CanadianCapitalist

Blinded by the “Refund”: Why TFSAs may beat RRSPs as better retirement savings vehicle for some Canadians



> With the introduction of Tax Free Savings Accounts (TFSAs) in 2009, Canadians have a powerful new retirement savings tool in their quiver, yet seem reluctant to use it. By continuing to sock money away in traditional Registered Retirement Savings Plans (RRSPs) at the expense of TFSA contributions, Canadians seem fixated on the immediate gratification
> of the “tax refund” associated with an RRSP contribution and may be shortchanging themselves come retirement time.


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## Assetologist

*Rethinking RRSPs*

Rethinking RRSPs if you have a Canadian corporation


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## steve41

Shortchanging?

OK... I just did a RRIFmetic run comparing the RRSP vs the TFSA for a (very) low income earner. The 30 year old makes just $25000 gross, and expects to retire at 65. In the first scenario, he invests in a TFSA. His die-broke net income (constant out to age 95) comes in at $20693. Living in BC, 6% rate of return, 2% inflation.

Now, let's see what the investment rate of return would have to be, in order to attain the exact same $20693 in the event he decides to invest in his RRSP instead of his TFSA.... Answer ..... 6.016% instead of the 6%.

Is this all that extravagant a comparison/change re RRSP vs TFSA investing? Not in my view.

These guys (Golombek, CDHOWE) are not truly crunching the numbers... they are drastically approximating income tax, IMHO.


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## Four Pillars

steve41 said:


> Shortchanging?
> 
> OK... I just did a RRIFmetic run comparing the RRSP vs the TFSA for a (very) low income earner. The 30 year old makes just $25000 gross, and expects to retire at 65. In the first scenario, he invests in a TFSA. His die-broke net income (constant out to age 95) comes in at $20693. Living in BC, 6% rate of return, 2% inflation.
> 
> Now, let's see what the investment rate of return would have to be, in order to attain the exact same $20693 in the event he decides to invest in his RRSP instead of his TFSA.... Answer ..... 6.016% instead of the 6%.
> 
> Is this all that extravagant a comparison/change re RRSP vs TFSA investing? Not in my view.
> 
> These guys (Golombek, CDHOWE) are not truly crunching the numbers... they are drastically approximating income tax, IMHO.


Not a bad article, but what took so long? I remember writing that retirement savings in a TFSA is more beneficial for low-income earners 2 years ago. Other bloggers did too.


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## steve41

My point was that it is really not worth the effort. The RRSP is effectively tax neutral in the first place. The difference (RRSP vs TFSA) is exceedingly modest.


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## Eclectic12

CanadianCapitalist said:


> Richard Morrison suggests stamps and comic books as investments:
> 
> *Holy investment opportunity, Batman*
> 
> *Stamps give stocks a licking*
> 
> It is silly to think of stamps or comic books as investments. My feelings were best summed up by this quote:


Hmmm ... not sure why the quote about "buy what you like and pass it on" was dropped.

In any case, I see stamps/comic books as the same as investing in say art or rare bottles of scotch. 

Random picks are not likely to work. Specialized knowledge, research and careful selection can. Too much work for my liking but I can see where the expert could do well.


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## Cal

I am sure that I am not the only one on CMF that caught attention of who this article was written about.

http://www.theglobeandmail.com/glob...stock-with-hands-on-ownership/article1879399/

Even his stocks have stayed the same for the most part.


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## Kim

*McLeans " The stock market is for suckers"*

Their headlines are always sooo over dramatic....

But it is a very intersting look at some of the US trading history and new trends emerging. I am on my way to google SecondMarket right now. 

It is in the Jan 31st 2011 issue, page 38.


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## Jungle

Cal said:


> I am sure that I am not the only one on CMF that caught attention of who this article was written about.
> 
> http://www.theglobeandmail.com/glob...stock-with-hands-on-ownership/article1879399/
> 
> Even his stocks have stayed the same for the most part.


Don't have a clue, who is it?


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## Brian Weatherdon CFP

*Best recent article on Estate Mismanagement*

By Jacquie McNish and Paul Waldie, March 5th 2011, Globe and Mail:
entitled "A bequest betrayed".

Seldom does anyone capture so poignantly the high goals of a philanthropic couple, and unexpectedly awful results which can follow death. 

Quotes from Barry Landen whose quotes guide the reader from behind his bars at the Toronto jail.


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## Four Pillars

Brian Weatherdon CFP said:


> By Jacquie McNish and Paul Waldie, March 5th 2011, Globe and Mail:
> entitled "A bequest betrayed".
> 
> Seldom does anyone capture so poignantly the high goals of a philanthropic couple, and unexpectedly awful results which can follow death.
> 
> Quotes from Barry Landen whose quotes guide the reader from behind his bars at the Toronto jail.


Ditto - very interesting article.


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## Brian Weatherdon CFP

Canadian Un-retirement Index was released today. Can find it at advisor.ca or paste into browser....

http://www.advisor.ca/news/canadians-less-optimistic-about-retirement-41365

This Forum could have a field day on such issues. Eg. many can retire well on < 50K income; many with over 100K/yr aren't as confident as pictured above; and many do without a certified planner. These points aside, this article has valid perspectives. 

People can be confident if they have resources befitting their dreams, & proper guidance to help them keep it all safe.


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## Cal

Great article of the mutual fund/banking industry, vs assembling your own portfolio of dividend growth stocks.

http://seekingalpha.com/article/256...come-going-to-come-from?source=hp_wc&wc_num=1


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## Assetologist

*Asset Classes currently Highly Correlated!*

I have a link to an interesting article from the Sunday New York Times regarding the current state of affairs revealing an unusually high correlation between many asset classes such as commodities, stocks (all markets) & bonds. 

This may throw the value of asset allocation on it's head at this time. 
The entire point of asset allocation theory is to create a portfolio of assets in classes with poor (negative or less positive) correlation such that when one class drops in value another rises or at least drops less..

“In current market conditions, there is little point trying to understand the nuances between different asset classes, or the relative value within asset classes. Commodities behave like bonds, which behave like equities. They are no longer easily identifiable, uncorrelated trades.”

Line Dancing with the Markets: New York Times

I suspect this is an anomaly which will revert to historical correlations eventually.


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## Brian Weatherdon CFP

Highly recommend everyone get a glance at the valuable article by Andre Picard, "*Breaking the bank to stay alive*". Globe & Mail, Apr 4/11. pp.6-7.

Provincial healthcare misses (and group benefits miss too) many of the costs incurred when diagnosed with life threatening illness. Article starts with Julie who was 23 and still carrying high student loans, when illness struck. Friends have been fund-raising to help pay for her pills. 

Answer isn't government (unsustainable).
Answer is owning our own health & critical illness coverage.


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## Cal

Investing Myths.....

http://www.theglobeandmail.com/glob...ing-adages-you-should-rethink/article1970280/

Personally I have some issues with this article....but it is food for thought.


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## Sustainable PF

A little shameless promotion here.

I guest posted @ FT's Million Dollar Journey today: Children and Capital Gain in Cottage Country


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## WesternPIKE

This article explores in detail a topic that some forum posters have commented on before - the decreasing return on investment in post-secondary education- while discussing the securitization of student debt through Student Loan Asset-Backed Securities. It then tries to draw comparisons between SLABS and the toxic mortgage backed securities involved in the 2008 crisis.

Its a great read!

http://nplusonemag.com/bad-education


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## CanadianCapitalist

Richard Thaler explains why more people don't buy annuities with their retirement funds:

The Annuity Puzzle



> But here’s the rub: Although people like Dave who have them tend to love them, old-fashioned “defined benefit” pensions are a vanishing breed. On the other hand, people like Ron — with defined-contribution plans like 401(k)s — can transform their uncertainty into a guaranteed monthly income stream that mirrors the payouts of a traditional pension plan. They can do so by buying an annuity — but when offered the chance, nearly everyone declines.
> 
> Economists call this the “annuity puzzle.” Using standard assumptions, economists have shown that buyers of annuities are assured more annual income for the rest of their lives, compared with people who self-manage their portfolios. One reason is that those who buy annuities and die early end up subsidizing those who die later.


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## Four Pillars

*Article for doctors and dentists*

Here is a good article for the numerous doctors and dentists in the forums:

It explains how doctors get a lot of financial pitches which aren't necessarily worth listening to. By Rick Ferri.

http://www.rickferri.com/blog/strategy/investing-tips-for-doctors/


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## dubmac

Four Pillars said:


> Here is a good article for the numerous doctors and dentists in the forums:
> 
> It explains how doctors get a lot of financial pitches which aren't necessarily worth listening to. By Rick Ferri.
> 
> http://www.rickferri.com/blog/strategy/investing-tips-for-doctors/


Interesting Pillars...
My dad was a doc & before he passed away, I opened an account with MD Management, a cdn financial mgmt company for physicians (even tho I am not a doc, I was able to open an account there). Their company has changed strategies in the last 10 yrs. They now offer advice from salaried advisors (paid by the CMA) with someesbonus'. They offer low transaction costs etc & access to bonds & a huge variety of funds (albeit with a 3rd party fee). What I found particularly interesting in the article that you have referred to was the following quote..

"The doctors flocked in. Within a couple of years, we had built a multi-million dollar business charging 2 percent per year in fees. It was a gold mine."

Clearly, this dr turned financial mgr saw a way to make much $...more than he would as a dr!

Also on a separate matter..check out today's G&M July 9th ROB the article mt Avner Mandelman..pg B10. He suggests there are buying opportunities in the Fall & Winter as more of the debt woes play out in world markets. Makes me ponder sitting on cash a while longer...


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## Cal

Some of the insurance agents and financial planners are such vultures they have even made arrangements with some of the faculties to do their salespitches to the students in their final year.


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## Cal

America not down and out?

http://www.telegraph.co.uk/finance/...44646/World-power-swings-back-to-America.html

CC you never let us down, every Friday, great posts and links.


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## CanadianCapitalist

Cal said:


> CC you never let us down, every Friday, great posts and links.


Thanks Cal 

Also, here are two articles on Economist explaining the Euro Debt solution and why it may not be enough.

http://www.economist.com/node/21534851

http://www.economist.com/node/21534849


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## Cal

http://www.theglobeandmail.com/glob...you-need-a-team-to-tend-to-it/article2224630/

I can't believe they don't mention to manage your own holdings, assuming you understand what you are undertaking.

And an article for Belguy:
http://www.theglobeandmail.com/glob...the-tv-hold-on-to-your-stocks/article2226036/


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## KaeJS

The "Panicking is for Losers" article is a good one.

I read it earlier and enjoyed it. Always fun to read the comments, too


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## dubmac

The author has certainly covered all bases when he writes...

*My scenario sees stocks rising for the next few months, before being hit by a wave of selling. We’ll soon see if things play out the way I expect.*

If this is true, then why not buy during the wave of selling? makes sense to me.


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## Larry6417

*From the "Ya think" files...*

This article is fairly straightforward, but given the debt of Canadians, maybe it's not so straightforward. See http://www.edmontonjournal.com/life/High+worth+linked+manage+money/5703212/story.html


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## jnorman5

Thank you for that article Larry. I found it really useful and made me do some thinking.

My wife and I hoping to start a family shortly and this article gave me some ideas about financial planning as family, moreso than as a couple: http://www.thesimpledollar.com/...holding-a-monthly-family-financial-meeting...

I wonder how many young couples that are attempting to build their wealth are actually doing these financial meetings.


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## Cal

http://www.businessinsider.com/walm...-than-seven-times-the-population-of-iceland-1


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## Dibs

Here is an interesting article (in French) about the retail in Quebec and Canada.

http://lapresseaffaires.cyberpresse...s-palmares-des-recommandations-danalystes.php

Here is a google translate of the article if you are interested. If there is something that doesn't make sense, feel free to ask me =)
Google Translated version


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## rcoyle

*On Beating the Market*

An excellent article on the improbability of beating the market. http://goo.gl/LFHG6

Moderator's note: The link in the post is to a blog post by Carl Richards in the New York Times.


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## ghayoor

*I found it really amazing!!*

That is the article of travel about Copenhagen it is really very amazing!!! 










"Danish culture gives children a beautifully natural place in society. Kids are, on the whole, neither spoilt nor overly scolded, and in Danish democratic tradition, they seem to be equal with adults. It is a pleasure to see Danish children, behaving just right, out and about in the country’s capital – where city planners have created as many opportunities for diversion as they have for their parents".


READ more!!!


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## Dibs

A fascinating photo essay on the Canadian Oil Sands:
http://www.businessinsider.com/canadian-oil-sands-flyover-2012-5?op=1


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## Dibs

Falling Star - The Chinese economy is slowing and is likely to slow a lot more. Get ready for a hard landing.

http://online.barrons.com/article/SB50001424053111903857104577467200405790354.html


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## Belguy

I thought that this column would be of interest to some:

http://www.moneyville.ca/article/1231097--low-income-senior-s-income-tax-shock

Any thoughts?


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## CanadianCapitalist

Not money related but I found this graphic put out by the Globe and Mail to be interesting. It shows all the Summer Olympics Medals Canadians have won to date arranged by year, medal & sport.

http://www.theglobeandmail.com/spor...-olympic-medals-1900-to-today/article4443388/


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## Belguy

The amazing, shrinking middle class:

http://www.kcur.org/post/pew-middle-class-poorer-earning-less-and-shrinking

Also Obama and the failed economy:

http://www.thedailybeast.com/newsweek/2012/08/19/niall-ferguson-on-why-barack-obama-needs-to-go.html


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## Belguy

When you are dealing with a financial advisor, how do you REALLY know who you are dealing with?

http://www.thestar.com/news/gta/art...d-financial-adviser-suspected-of-ponzi-scheme


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## Belguy

The Great Depression II?

http://www.50plus.com/money/world-great-depression-economy/182363/1/


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## Belguy

ETF's--the ugly and the good:

http://www.theglobeandmail.com/glob...-to-know---and-those-to-avoid/article4498123/


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## Belguy

Six cheap places to retire to--including Vancouver???!!!

http://www.bankrate.com/finance/ret...oad.aspx?ic_id=nwsltr_wkrdup_20120824#slide=7

Plus ten cheap beach towns to retire to:

http://www.bankrate.com/finance/rea...home-prices.aspx?ic_id=nwsltr_wkrdup_20120824


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## Dopplegangerr

In the 6 cheap places to retire I lived in number 6 for five months when I was traveling threw Central America. Its amazing there, and probably where I was most happy in my life. I go to bed every night dreaming of going back to Guatemala. Really of all the places I have been to this is up there with most special for me


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## Toronto.gal

Though a beautiful/fascinating place with rich Mayan culture, history, diverse ethnic mix., etc., Guatemala is very underdeveloped/high crime/3rd poorest in the region, etc. 

Of the 7 countries in the area, if I had to pick a place to retire, I would choose Costa Rica or Panamá [if not for the intolerable humidity mind you].


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## m3s

Living in Vancouver is cheap? We must be covering some huge medical bills if so..

I discovered the second one Chiang Mai last year. It's a popular place for rugged backpacking and motorbiker types as well. Met some retirees living large on very little. There's no reason to cook for yourself as you can get amazing prepared meals or fresh fruit for a dollar or 2 w tip just about anywhere and rent is a few hundred. Natural hot springs and cheap massage/spa everywhere. The driving is crazy but I like it and there's lots to explore. The bad part is a month of smog when the farmers all burn back the bushes in the spring.


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## Dopplegangerr

Have you been to all of the countries in Central America Tgal?


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## Spudd

I've been to Costa Rica on business (only the capital city, though) and did not like it. Too much traffic, not bike/pedestrian friendly, too dangerous. When there are armed guards outside gates at my hotel, and all houses have bars over windows/doors, it's not a place I want to live. Maybe things are nicer outside San Jose.


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## Belguy

Personally, I can't stand heat and humidity. A few weeks of summer in Southern Ontario is enough for me. I'm thinking more in terms of the far north but I haven't spent a winter there yet with weeks of complete darkness. I can't imagine what the humidity would be like in the tropics but I don't think that I will try to find out anytime soon.


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## Toronto.gal

Dopplegangerr said:


> Have you been to all of the countries in Central America Tgal?


Have not yet visited the 2 poorest.


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## Belguy

Where to retire to after the market crashes with what money you have left:

http://ca.finance.yahoo.com/photos/...lenas-comisión-ballenera-photo-004123747.html

Also, an investment quiz:

http://www.theglobeandmail.com/glob...oure-an-investing-know-it-all/article4510787/


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## Belguy

I feel that some of the comments in this article could apply to forum responders as well:

http://blogs.telegraph.co.uk/techno...omments-are-the-radioactive-waste-of-the-web/


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## Toronto.gal

Belguy said:


> Also, an investment quiz:


Why didn't you share your score with us? I know for sure you got perfect on question #1 [hold forever]. :biggrin: 

I got #4 wrong.


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## Belguy

Targeting your wallet:

http://www.canadianbusiness.com/article/100001--target-s-friendly-invasion


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## Financial Services

*Testamentary Trusts*

Testamentary Trusts - Protecting Your family's future


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## Rainey

Just call me a financial voyeur. I know its shallow, I know its wrong, but I really enjoy the Post's Family Finance and the Globe's Financial Facelift -- the richer, the poorer, the stranger the better.
Anyone know of similar profiles on other sites?


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## Jon_Snow

I am addicted to them as well... I am waiting for the day when they profile a couple like my wife and I. So far, no luck...


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## uptoolate

Yes I enjoy reading them too. And of course really like the comments sections though the Post's version doesn't seem to get nearly as many comments.


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## iherald

4 people who all make the same money. See how they spend and save what they make:

http://lifehacker.com/four-people-one-salary-how-they-spend-and-save-on-60-473215159


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## CanadianCapitalist

Swedroe: Value Metrics Not All Equal 

When implementing a value strategy, many different metrics can be used. Among the most common are price-to-earnings, price-to-sales, price-to-book value, price-to-dividends and price-to-cash flow. All the various metrics produce results showing that value stocks have had higher returns than growth stocks. And the various measures produce similar results (with the weakest results coming from the use of the price-to-dividend ratio).


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## TomF

Here is some information I came across in today's National Post (Saturday, 4 May 2013, Page FP10 - FP11).

A couple articles by Melissa Leong.

"The new wave of personal finance gurus"
(I was not able to find this article online.)

and

"Six of the coolest money websites"
I was able to find this article online:
Six of the coolest money websites to read
This article looks at six websites/blogs that have become extremely popular, offer excellent financial advice, but aren't selling anything. And four out of the six are Canadian sites.
Hmmmnn... might be worth bookmarking for further reading.


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## Retired Peasant

TomF said:


> Here is some information I came across in today's National Post (Saturday, 4 May 2013, Page FP10 - FP11).
> 
> A couple articles by Melissa Leong.
> 
> "The new wave of personal finance gurus"
> (I was not able to find this article online.)


This I think?


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## TomF

Retired Peasant said:


> This I think?


You're right. That's it.

However, the title is different than the title in the paper copy I have.
The title in the newsstand copy is "The new wave of personal finance gurus". I searched for this title and didn't find it.

In any case, we have it now.
Thank-you.


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## jcgd

The Reformed Broker. Why the current rally is not like '99. Some good ideas, things to note at least. He makes an excellent point at the end.

http://www.thereformedbroker.com/20...town-josh-brown-destroys-the-1999-comparison/


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## andrewf

Reads like sloppy writing/analysis to me. To wit,

"The 2013 S&P 500 is earning double that amount - over $100 per share. The index will also be paying out double the dividend this year, more than $30 per share, and returning even more cash with record-setting share repurchases.

This sounds pretty good, what's the catch?

What kind of premium, pray tell, are we paying for double the earnings and twice the dividend yield versus 1999's market? I'm so glad you asked - turns out we're not paying any premium at all. We're paying a discount. 50% off. The current S&P 500 trades for a PE of 14 versus 33 for 1999. So double the fundamentals for half the price."

Dividend yield did not double, the dividend *rate*, did. And you are not getting double the fundamentals for half the price, you're getting earnings at half the price. P/E is relative to current fundamentals, so the size of change in the fundamentals is irrelevant. He's double counting.

Reminds me of Garth Turner, who is also very sloppy with his analysis, either due to incompetence or to massage the facts to make his point.

He also criticizes CAPE, but doesn't actually back it up with numbers, like even what the CAPE would be now if you excluded the worst 2 earnings years in the last 10 (given as he claims there were some exceptionally bad years in the past decade). I'm not so convinced that doing this would magically transform today's highish CAPE of 24 to something a lot more attractive, like low teens. Now, a CAPE of 24 doesn't mean you should sell all your stocks, it just means that the US is relatively overvalued, especially when compared to many international markets. Expected real returns are still positive, which is not something you can say about bonds. Anyone interpreting CAPE correctly would not conclude that you should sell all your stock and hold bonds/cash.

He spends a lot of time saying that the current market is not like 1999. I don't think anyone is saying this is 1999. Or we're not there yet. But similarly, just because this isn't 1999 doesn't mean the market will continue marching higher. 2007/2008 was not 1999 either...


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## GoldStone

I read The Reformed Broker for entertainment.

Keep in mind that Brown is biased. He is a partner in the investment advisory business that manages portfolios for high networth individuals. His blog is a publicity tool. Unbridled optimism is good for business. Rah rah rah articles like this one bring new clients in the door.

OTOH, being bearish while the market is on fire is a sure way to get fired.


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## jcgd

andrewf said:


> But similarly, just because this isn't 1999 doesn't mean the market will continue marching higher. 2007/2008 was not 1999 either...


True, he doesn't say he thinks it will continue marching higher. He doesn't make any calls, he just points out that today isn't 1999, for those who are making the comparison.


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## jcgd

GoldStone said:


> I read The Reformed Broker for entertainment.
> 
> Keep in mind that Brown is biased. He is a partner in the investment advisory business that manages portfolios for high networth individuals. His blog is a publicity tool. Unbridled optimism is good for business. Rah rah rah articles like this one bring new clients in the door.
> 
> OTOH, being bearish while the market is on fire is a sure way to get fired.


Sure, it's entertainment. Though, once again, in this particular article I don't see where he makes market calls. The article only points out that today is not like '99.


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## donald

Not a article but good for the soul,read up on jim rohn,dale carnegie,zig ziglar,ect..........I love people who came from nothing and built success(even rockerfeller/gould/getty ect)--In the investing world-buffett/munger(buffett wisdom is so to the point,uncomplicated and some what similar to ''proverbs'' in the bible(proverbs is excellent advice,if you ever really read them and are even non religious-life laws,i think it is the first ever business advice writings ever created and it is on the money imo)
Historical bio's are where it is @(things never change,you can learn a lot from the past)+1 for history.


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## dubmac

http://www.financialfanatic.com/
Saving Investors From Themselves By Jason Zweig
I found this website - and the following article in it - to be quite interesting and a worthwhile read for anyone who is interested -
I'm still "digesting" much on the information.
The site is also quite interesting and may be a valuable addition to your list of financial websites.


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## Pluto

For those who like to keep tabs on the status of the market in terms of future appreciation potential this article might be of use to you. 

http://www.marketwatch.com/story/finding-the-best-four-year-market-forecaster-2013-04-19

Value Line is available in many libraries and the VLMAP is updated weekly.


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## CanadianCapitalist

Global Wealth Report 2013 put out by Credit Suisse today.

https://www.credit-suisse.com/ch/en...t-suisse-research-institute/publications.html

Data for Canada according to the report (Page 62):

Country summary 2013 
Population 35 million 
Adult population 27 million 
GDP 67,006 USD per adult 
Mean wealth 251,034 USD per adult 
Median wealth 90,252 USD per adult 
Total wealth 6.8 trillion USD 
Dollar millionaires 993 thousand


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## Four Pillars

Funny article about bullsh*t that financial types like to say:

http://www.fool.com/investing/gener...ngs-finance-people-say.aspx#commentsBoxAnchor


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## andrewf

Yes, many of those things finance talking heads say drive me crazy, too.


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