Author Topic: Investment Culture  (Read 464 times)

Offline segnosaur

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Re: Investments
« Reply #60 on: May 08, 2017, 01:05:37 pm »
The way he is slashing regulations and oversight, I think the Trumpster is setting us up for another 2008.  I will be reducing my equity exposure over the next couple of years regardless of crappy interest rates.
I agree that Trump may be setting up the financial system for another collapse. And, much of the current rise in stocks is not based on actual changes, but on the (probably soon to be dashed) hopes and dreams of investors, who seem to only be looking at the "good" (possible tax cuts improving dividends) and ignoring the bad (rising deficits).  However, it may take years for reality to set in for investors, so financial stocks may continue to rise for a while before they correct themselves.

All this isn't very relevant to me. All of my investments are in Mutual funds within my RRSP. Most of my mutual funds are in index funds (most Canadian, some global) so I don't necessarily think about individual stocks, and the broad base reduces my risks.

Offline msj

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Re: Investments
« Reply #61 on: May 08, 2017, 02:44:03 pm »
All this isn't very relevant to me. All of my investments are in Mutual funds within my RRSP. Most of my mutual funds are in index funds (most Canadian, some global) so I don't necessarily think about individual stocks, and the broad base reduces my risks.

You sound like a guy who does not know what you are invested in.

Mutual funds could be anything from 100% stocks to 100% bonds.

Consider checking out some charts of what happened in 2008/2009:  Emerging Markets down 55%, US markets down 50%, Canada down 53%, even Vanguard Total Index (essentially the world) was down 42% (from 2008 - it was not around at peak values of 2007ish).

But that is for stocks.

Bonds/Preferred shares held their value much better. Some did not even lose money.

Know what you own, know why you own it, and then you can sleep easy at night.
I've gotta have more cow bell! -Bruce Dickinson

Offline segnosaur

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Re: Investments
« Reply #62 on: May 08, 2017, 03:58:27 pm »
You sound like a guy who does not know what you are invested in.

Mutual funds could be anything from 100% stocks to 100% bonds.
Yes they could be.

But as I said, most of my mutual funds are indexed funds. I.e. it is held as a mutual fund, but it basically tracks the performance of the TSX or the NYSE. (So, its based on a broad collection of stocks; no bonds involved. It has very low management fees, and index funds often do better than actively managed portfolios when management fees are considered.)

I also have a few other funds... some balanced funds (mix of stocks and bonds) and a few lower risk funds to provide some diversity. When I get closer to retirement I will move more of my stock-based index funds to my bond funds.
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Consider checking out some charts of what happened in 2008/2009:  Emerging Markets down 55%, US markets down 50%, Canada down 53%, even Vanguard Total Index (essentially the world) was down 42% (from 2008 - it was not around at peak values of 2007ish).
I'm a long term investor. I don't intend to retire for at least a decade. Yes, 2008 was a catastrophe for the stock markets. There has also been times when stocks have experienced strong growth. On average the stock market has performed well. (I think my average growth over the past 10 years has been something like 8-9%, even with the market crash of 2008/2009.)
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But that is for stocks.
Bonds/Preferred shares held their value much better. Some did not even lose money.
That may be true for 2008/2009. But when you are talking about long-term market trends you can't get too fixated on one short time period. 

If Bonds do better in one year, but stocks do better in the next 4 years, at the end you're going to be better off being in the sock market than bonds.

The trick is:
- Diversify (i.e. get a broad base of stocks rather than trying to 'pick' winners and losers). That's the benefit of mutual funds.
- Prepare for the long term (i.e. expect that markets will have occasion wild swings. Don't try to time the market or panic if the market drops suddenly.)
- Invest regularly, rather than making one big lump sum investment and sitting on it

Offline BC_cheque

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Re: Investments
« Reply #63 on: May 08, 2017, 07:02:06 pm »
I'm a long term investor. I don't intend to retire for at least a decade. Yes, 2008 was a catastrophe for the stock markets. There has also been times when stocks have experienced strong growth. On average the stock market has performed well. (I think my average growth over the past 10 years has been something like 8-9%, even with the market crash of 2008/2009.)That may be true for 2008/2009. But when you are talking about long-term market trends you can't get too fixated on one short time period. 

This is a perfect strategy and mindset.  Good for you.


Offline msj

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Re: Investments
« Reply #64 on: May 08, 2017, 09:25:39 pm »
Mutual Funds and ETF's (exchange traded funds) can follow all types of passive/active strategies and a broad range of asset allocations from stocks to futures to bonds.

I own and have owned everything from sectors (US banks, US homebuilders, US real estate due to a spinoff from US banks, etc) to CDN O&G and CDN Materials to CDN preferred shares, to countries (anyone into Portugal? Italy, Austria, UK, Chile etc).   

Even have owned coffee (JO) and leveraged futures ETF's which I will no longer touch (3 times junior gold minor bear fund or 3 times natural gas bear funds are too easy and too quick to lose money).

But lets face reality- I derive most of my joy from the individual stocks I buy.

Win or lose, I just love reading the quarterly reports each time and deciding if I would be willing to buy at the current price (so hold the investment and/or buy more) or if it is time to sell.

Skin in the game makes me care.

It's why I invested into CDN O&G - so I can focus on what is BS (eg. the political types blaming the AB NDP for all the woes) and the legitimate challenges to the sector (renewables, OPEC, climate change policies etc). 

So sometimes the goals are not entirely financial but investing is always, first and foremost, fun.

I've gotta have more cow bell! -Bruce Dickinson

Offline segnosaur

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Re: Investments
« Reply #65 on: May 09, 2017, 09:54:27 am »
So sometimes the goals are not entirely financial but investing is always, first and foremost, fun.
I'm glad you enjoy the experience.

Personally, I'm a bit more risk-adverse and paranoid, and would probably not have the same sort of enjoyment in trying to pick specific investments. I do realize that investing is necessary and that some risk is needed (hence my use of broad based indexed funds), but not to the point where I'd be risking a good chunk of my retirement funds on whether the oil sector will go up or down in a particular year or whether the coffee harvest will be affected by a swarm of locusts.

Offline msj

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Re: Investments
« Reply #66 on: May 09, 2017, 03:19:44 pm »
Will also go on record here: have purchased shares of VRX (Valeant - USD version) which is probably stupid, but whatevs..... bought it for the Bausch & Lomb and staying for the Salix, as they say.

Sold VRX.

Made 21% in less than a month. Haven't done that in a while.

Sometimes even a crazy old man gets lucky. 

Will reconsider purchasing again if it goes down - because I'm crazy.
I've gotta have more cow bell! -Bruce Dickinson

Offline dia

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Re: Investments
« Reply #67 on: June 18, 2017, 08:28:55 pm »
I've never invested in my life, but this month I happen to have $5000 looking to make some money for me.  Any suggestions from the more experienced?   
“Neither a man nor a crowd nor a nation can be trusted to act humanely or to think sanely under the influence of a great fear.”
Bertrand Russell, Unpopular Essays

Offline BC_cheque

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Re: Investments
« Reply #68 on: June 18, 2017, 10:24:50 pm »
I've never invested in my life, but this month I happen to have $5000 looking to make some money for me.  Any suggestions from the more experienced?   

If you're thinking of individual stocks, Amazon is starting to look like a pretty safe bet.   

If I didn't have an ethical dilemma about what they're doing, I would buy some of their stocks. 

They're going nowhere but up.

Offline jmt18325

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Re: Investments
« Reply #69 on: June 18, 2017, 11:17:30 pm »
In other news, I'm thinking of renaming this thread investment culture.
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Offline dia

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Re: Investments
« Reply #70 on: June 19, 2017, 12:19:57 am »
If you're thinking of individual stocks, Amazon is starting to look like a pretty safe bet.   

If I didn't have an ethical dilemma about what they're doing, I would buy some of their stocks. 

They're going nowhere but up.

What are they doing that's unethical?
“Neither a man nor a crowd nor a nation can be trusted to act humanely or to think sanely under the influence of a great fear.”
Bertrand Russell, Unpopular Essays

Offline BC_cheque

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Re: Investments
« Reply #71 on: June 19, 2017, 02:43:57 am »
What are they doing that's unethical?

They sell at lower prices than their competitors and then buy them out.  They track the sales of individuals selling on their site and eventually use the sales data to undersell them with their best selling products.  The purchase of Whole Foods was almost a hostile takeover last year and ended up happening this year with Whole Foods CEO basically getting to keep his job in return for the purchase.  They're now in monopoly territory and some would say they already are there.

Nothing illegal and good for them, they've been very successful and I do occasionally buy from them, but generally I like to support smaller businesses so I personally would feel conflicted.

If you can put that aside, they're basically unstoppable at this point and unlike facebook which I could see one day losing ground, I can't see what could possibly change in the future for Amazon.  Their aggressive tactics and expansion into so many different industries (they really are a conglomerate at this point), coupled with their technology and work culture, they're a force to be reckoned with. 

Bezos is gonna takover Bill Gates as the world's richest very soon.

Offline MH

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Re: Investments
« Reply #72 on: June 19, 2017, 06:22:55 am »
In other news, I'm thinking of renaming this thread investment culture.

There's no way to know what will make money and what won't.  I park my money with Dominion Securities and it goes up... s l o w l y...

If I cared more, I'm pretty sure I could manage things myself and outperform the market.

Offline segnosaur

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Re: Investments
« Reply #73 on: June 19, 2017, 12:49:43 pm »
I've never invested in my life, but this month I happen to have $5000 looking to make some money for me.  Any suggestions from the more experienced?
How risk-adverse are you? Would you be content with a broad-based index fund or something similar?

Offline dia

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Re: Investments
« Reply #74 on: June 19, 2017, 01:09:28 pm »
How risk-adverse are you? Would you be content with a broad-based index fund or something similar?

I'm not very risk-adverse, although obviously I'd prefer not to lose my money.   I don't know what a broad-based index fund is.

The other option I'm considering is to do a small kitchen reno, because I plan to sell this townhouse in a year or two and kitchen reno would make it pretty and easier to sell.  it's a bit 'dated' and has some minor cosmetic damage.   

“Neither a man nor a crowd nor a nation can be trusted to act humanely or to think sanely under the influence of a great fear.”
Bertrand Russell, Unpopular Essays