Category Archives: Behavioural Finance

Bitcoins vs Tulip Bulbs

Tulip bulbs were once a store of value. Their value was determined by their beauty and what the next person would pay for one. They can die (and can be mined so to speak), which was a troubling sign, but they never had stable demand…

What’s Going On With The Canadian Dollar?

The Canadian dollar has been on a roller coaster all year. Early in the year, the message from the Bank of Canada was that the economy was not at full potential and continued to require extremely low interest rates. Coupled with this, the U.S. Federal

Seasonal Bottom Due This Week: What to Expect

A few times per year, seasonal investing is very important to consider. This week historically marks a bottom potential for U.S. large caps (S&P 500). Of course, this year, the seasonal weakness that we typically see in Q3 did not materialize. There was about a

What Does Market Valuation Tell Us About Future Returns?

You have probably heard from me and others that the US market is overvalued. You have also probably heard (from others) that since interest rates are so low, the market deserves a higher valuation. One of my favourite investment managers (GMO – Grantham, Mayo, &

Assessing the Risk of a Market Correction

We finally saw a bit of volatility last week ignited by the tough talk between Trump and North Korea. Will this be the catalyst to ignite the next material market decline? Reading the “Tape” is not for everyone. It’s a skill that is fraught with

How Should You Use Gold In Your Portfolio?

The most important portfolio factor for many investors is diversification. Lowering portfolio risk while generating yield is something that every investor should strive for. One asset class that engenders a multitude of emotions but has no yield is precious metals and gold in particular. Gold