Invest Skeptically

Know what you’re buying and invest skeptically.

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Entries Tagged as 'Strategy'

Investing vs Trading

January 28th, 2008 · 3 Comments

Jonathan Chevreau writes about Dennis Gartman’s presentation at the Toronto Financial Forum on his blog. He reports how the “veteran trader and newsletter publisher” urged investors to “buy what’s already going up, and to sell investments that are going down”.
“[Gartman] also suggested that even top traders like himself will be wrong 60 to 80% [...]

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Tags: Current Events · Financial Advice · Strategy

Dollar Cost Averaging

December 28th, 2007 · No Comments

RRSP “season” will be arriving soon in Canada and savvy financial advisers will use this opportunity to sell their clients on pre-authorized regular contributions towards their retirement savings plans. Dollar cost averaging, they’ll say, is the strategy to go with.
While it makes sense from a psychological point of view to [...]

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Tags: Financial Advice · Strategy

Two examples of the Law of Unintended Consequences seen in U.S. renewable energy policy

July 12th, 2007 · No Comments

Today’s entry is a bit experimental and so I’d appreciate any feedback you may have.
I’ve been reading lately of a number of interconnected issues and I wanted to try and fit them together in a simple picture. As such, I’ve put together a diagram of the interconnectedness between U.S. biofuel subsidies and inflation in [...]

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Tags: Asset Allocation · Current Events · Strategy

More than one kind of index: Market Capitalization vs. Fundamental

July 10th, 2007 · 2 Comments

The most familiar indices, such as the S&P 500, are typically weighted by market capitalization (a notable exception being the DJIA which is an arithmetic average price). This means that larger companies like 3M get a proportionally larger weighting than smaller stocks like Paychex (just picked two companies at random). Market cap indices are [...]

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Tags: Asset Allocation · ETFs · Indices & Benchmarks · Strategy

Copycatting

July 4th, 2007 · No Comments

Duncan Hood writes, “Steal this column,” in Canadian Business Online. He refers to a research paper that suggests copycat funds — that simply mimic mutual funds at each public disclosure (funds have to release their holdings at least semi-annually) — can yield similar returns to the mutual funds they copy, and, in the [...]

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Tags: Funds & Mutual Funds · Strategy