4 Important Psychological Biases for Investors to Understand

In our last post we highlighted that behaviour might just be the biggest source of trouble for investors.  People just aren’t psychologically wired to make investment decisions that are good for them and often do things that are potentially harmful.  Our brains have evolved to create protection mechanisms that in many instances are helpful – just not […]

The most dangerous asset class may just surprise you….

Investors flee to cash during times of trouble.  However, far from being a safe haven, cash is potentially the most dangerous asset class for investors, luring investors into bigger psychological bubbles than even tech stocks and housing have historically. We recently wrote about why investors might want to consider holding bonds rather than cash, even at current low […]

How do you like them Apples?

“In short, these ETFs live by the big stock sword but they also die by the big stock sword.” This quote from a Bloomberg article this morning “Apple Takes a $4 Billion Bite Out of ETFs as Smart-Beta Shines”, captures one of the obvious shortcomings of investing in simple exchange traded funds (ETFs) that weight their holdings […]

Sell in May and go away?

Wouldn’t it be just so easy if it were true?  Well, if you believe the academic research, this odd anomaly does seem to hold up historically.  There are a number of supposed stock market anomalies based on seasonality – The January Effect, the Monday effect, the Holiday Effect, the End of the Month Effect.  These […]

Canada comeback?

“Not to fear, we have found a manager based in our very own Canada that is able to consistently beat the pack” S&P has done a brilliant job over the last few years of shining the light on the fund management industry by publishing it’s SPIVA Scorecards which report on the performance of actively managed mutual funds […]