Articles

Efficiency is becoming more important in a world that tries to do more in less time. Gone are the days when snail mail and the telephone ruled. Today, digital technology and social media aim to improve communications. The Putnam Investments Social Advisor Study completed in the U.S. is one of the largest surveys for financial … The importance of effective communication for advisors

Owning individual stocks can be a silly investment strategy. In mid-August the Samsung Galaxy Note 7 went on sale. Five days later the first phone exploded. In September, Samsung recalled 2.5 million Note 7s because of faulty batteries. A few weeks later the replacement phones started to catch fire. In early October a Note 7 … Portfolio diversification is the smartest investment option

  Ottawa remains fearful of the dangers of a continuing rise in residential real estate prices. Last week, the federal government introduced new rules and restrictions that are designed to discourage speculation by foreign investors. Plus, the government wants to prevent homeowners from accumulating mortgage debt beyond their financial means. Finance Minister Bill Morneau continues … The dangers of Canada’s real estate bubble will affect us all

In 2015 the accounting firm KPMG submitted a report to the Department of Finance. The report said there was “no valid economic rationale” for the Canada Savings Bonds (CSBs)program. The value of CSBs in 1987 was $55 billion. In 2015 that value had fallen to approximately $6 billion. Based on such a significant decline of … Canada Savings Bonds could become extinct

Why do investors often think their investments perform worse than they actually do? This is not a rhetorical question. It does happen. I have had many conversations with investors who are discouraged about their investment performance. Then, when they review the return on investment details, they are relieved and impressed. I am not aware of … Investors’ human nature leans towards pessimism

This column is the third discussion in the three-part series on behavioural finance, dealing with the pitfalls of human behaviour and investing. We all invest with confidence and enthusiasm and no matter how diligent we attempt to be, human behaviour gets in the way and causes us to make “human” mistakes. Most investors realize how … Behavioural finance and the illogic of ‘mental accounting’