Investment Strategy

Adopting an appropriate investment strategy requires an investor to build a systematic plan of action to achieve his or her long term goals. The plan will determine the allocation of investable assets among stocks, bonds, cash and cash equivalents and alternative investments. The plan will consider such macro factors as economic trends, inflation and interest rates. Other factors are more personal–such as the investor’s age and risk tolerance as well as future needs for income and capital expenses. Tactics to achieve these individual strategic investment goals will inevitably involve a trade-off between risk and reward parameters. The expectation of higher returns will almost certainly involve the acceptance of some risk. Investors determined to follow their plan will commit it to writing. Then, when the going gets tough in stressful financial markets, the comfort of re-reading your strategic plan will remind you that you’re on the right path.

Investing in residential real estate

Canada’s residential real estate market may be growing into a giant collapsible bubble. Portfolio manager and regular MoneyLetter columnist Keith Richards argues there are better ways to seek capital gains   Read More

Wait ’til next year

Whenever we’re disappointed by the elimination of our favourite baseball team, we console ourselves with the history of the hapless Brooklyn Dodgers who won the National League pennant in 1941,   Read More