I will add that I have been buying many 1 year GIC's, about 25 over the last year, likely continue,, but might not be the best strategy. In my TFSA 5.5% after tax sounds pretty good for a Canadian.....I think :)
Gains by one investors come at the expense of losses by another
Not sure I agree with that, no different than selling a house, it can earn "rent" and the price has risen. My investment stance is changing, more and more Im thinking the dollar (Cdn or US) is going down, the market is not really going up, and investments that will do well as dollars are printed might be companies like CP Rail, to replace it, it would cost a fortune. I held some Berkshire for a while but sold much too soon, 2008 after I bought it to attend the 2007 BH meeting, was quite a treat.... Both old guys then, they answered questions from the floor for 4 or 5 hours, quite amazing for a 40 year old, never mind these 2 really old guy in 2007. now 17 years later, Charlie just passed and Warren still kicking really hard:)
Some things are tautalogical. No wealth is created in the secondary market for securities. All gains by one investors necessarily come at someone else's expense. The operating results of the underlying companies are not affected by the trading but the trading comes at a cost in terms of commissions, fees and taxes.
WRT Bonds, yes agree, shares Im not on board since fees can be almost zero. My understanding is the small caps are underfollowed the last 10+ years with decimalization. The lose of usual a 1/4 point on trading started moving the experienced analysts to the big caps and the new inexperienced to the small caps.
even to this day its difficult if not impossible to buy bonds for tiny to zero fees.
Another always thoughtful/researched article. I am waiting for you to write something on BRICS. It should be interesting.
Thanks, Winston
I will add that I have been buying many 1 year GIC's, about 25 over the last year, likely continue,, but might not be the best strategy. In my TFSA 5.5% after tax sounds pretty good for a Canadian.....I think :)
Gains by one investors come at the expense of losses by another
Not sure I agree with that, no different than selling a house, it can earn "rent" and the price has risen. My investment stance is changing, more and more Im thinking the dollar (Cdn or US) is going down, the market is not really going up, and investments that will do well as dollars are printed might be companies like CP Rail, to replace it, it would cost a fortune. I held some Berkshire for a while but sold much too soon, 2008 after I bought it to attend the 2007 BH meeting, was quite a treat.... Both old guys then, they answered questions from the floor for 4 or 5 hours, quite amazing for a 40 year old, never mind these 2 really old guy in 2007. now 17 years later, Charlie just passed and Warren still kicking really hard:)
Some things are tautalogical. No wealth is created in the secondary market for securities. All gains by one investors necessarily come at someone else's expense. The operating results of the underlying companies are not affected by the trading but the trading comes at a cost in terms of commissions, fees and taxes.
WRT Bonds, yes agree, shares Im not on board since fees can be almost zero. My understanding is the small caps are underfollowed the last 10+ years with decimalization. The lose of usual a 1/4 point on trading started moving the experienced analysts to the big caps and the new inexperienced to the small caps.
even to this day its difficult if not impossible to buy bonds for tiny to zero fees.