I'm mostly looking for market performance as I'm looking at 20-25 years for returns.
The simplest thing is your Veqt/vgro/vbal or Xeqt/xgro/xbal all in one ETFs. They essentially are total world market funds with home country bias to Canada. Each type has a different amount of bonds in them. For stock exposure the Xeqt is 45% US, 25% Canada, 25% major international and 5% emerging markets.
These still suffer from the US portion being dominated by the big 7 and the Canadian portion being dominated by banks, telecom and oil.
But they give you more or less world market returns with lower volitility by increasing Canadian content. It’s about as boring as you can get.
The Following 2 Users Say Thank You to GGG For This Useful Post:
Thanks for the response. I am relatively knowledgeable about investing to the.degree that I am aware of how much I don't know. Enough knowledge to be dangerous.
Here is a weird question. My dad has a bunch of share certificates to a bunch of companies that have been folded into other ones or don't exist anymore. A bunch are Australian based companies. Is there a way to check if these things are worthless before I throw them out. Has 10,000 shares in Valencia Mining Corporation? Google is not helping much.
Here is a weird question. My dad has a bunch of share certificates to a bunch of companies that have been folded into other ones or don't exist anymore. A bunch are Australian based companies. Is there a way to check if these things are worthless before I throw them out. Has 10,000 shares in Valencia Mining Corporation? Google is not helping much.
A veteran wealth management executive says that unless Canada’s largest pension plans start investing more domestically, institutions like the Toronto Stock Exchange could one day fall by the wayside.
Peter Letko, co-founder and partner at investment management firm Letko Brosseau, told BNN Bloomberg that Canada’s economic and financial health is being impacted by the low level of investment from Canadian pension funds.....
What the angle is here. He is advocating for increased domestic investment from CPP funds to support the Canadian economy and financial market...OR ELSE: DOOM ?
CALGARY, AB,#March 20, 2024#/CNW/ - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX:#CPG) (NYSE: CPG) announced today that it intends to change its name to Veren Inc. ("Veren") and will seek shareholder approval for the change at its upcoming Annual and Special Meeting of Shareholders ("AGM") on#May 10, 2024.
Amazon is removing Just Walk Out tech from all of its Fresh grocery stores in the US, as reported by The Information. The self-checkout system relies on a host of cameras, sensors and good old-fashioned human eyeballs to track what people leave the store with, charging the customers accordingly.
The technology has been plagued by issues from the onset. Most notably, Just Walk Out merely presents the illusion of automation, with Amazon crowing about generative AI and the like. Here’s where the smoke and mirrors come in. While the stores have no actual cashiers, there are reportedly over 1,000 real people in India scanning the camera feeds to ensure accurate checkouts.
What the angle is here. He is advocating for increased domestic investment from CPP funds to support the Canadian economy and financial market...OR ELSE: DOOM ?
His angle is less domestic investment = less Assets under his own management to draw commissions / fees from.
The right way to address this issue isn't compelling pension funds to invest in subpar domestic investment opportunities, it's taking initiatives to bolster the economy domestically to make the investment opportunities in Canada more attractive to not only attract domestic investment but foreign investment as well.
His angle is less domestic investment = less Assets under his own management to draw commissions / fees from.
The right way to address this issue isn't compelling pension funds to invest in subpar domestic investment opportunities, it's taking initiatives to bolster the economy domestically to make the investment opportunities in Canada more attractive to not only attract domestic investment but foreign investment as well.
Well for a resource based economy that is easier said than done. There are a significant amount of asset owners around the world who flat out will not invest in fossil fuels. It's not a question of "blackballing" Canada or anything like that. It's that we have a few sectors that dominant the TSX and frankly some of those are non-starters for some major foreign investors.
That doesn't mean pensions here in Canada should be piling into Canadian equities though. It just makes it more difficult to attract foreign investment.
I've recently decided to forgo individual stocks and instead invest in the market long term through VFV.TO for my CAD, and QQQM for my USD. Reason being the old adage that the overall market will outperform most over the long term. Tech will generally continue to innovate and push the envelope so hence the QQQM. In three weeks VFV has gained about 6%, and QQQM I just got into, so we'll see where it goes. Not a fan of fees so going the ETF route instead of mutual funds.
One thing to consider is increasing your diversification. The US market has been killing it for the last 10-15 years so it seems logical to go 100% into it, but that's really just recency bias. There have been long periods where the US market has performed poorly relative to other markets, and at this point the S&P 500 is heavily weighted to a few tech giants, so if they struggle then the whole market will.
Personally I'm heavily invested in the US, but I do devote about 20-25% of my equity investments to non-US stuff (mix of Canada, developed non-NA markets, and emerging markets). We all assume the US will continue to dominate economically, but that's far from a given. And at the current price-to-earnings ratio for the S&P 500, they really do need to continue to dominate to justify the current valuations.
The Following User Says Thank You to opendoor For This Useful Post:
One thing to consider is increasing your diversification. The US market has been killing it for the last 10-15 years so it seems logical to go 100% into it, but that's really just recency bias. There have been long periods where the US market has performed poorly relative to other markets, and at this point the S&P 500 is heavily weighted to a few tech giants, so if they struggle then the whole market will.
Personally I'm heavily invested in the US, but I do devote about 20-25% of my equity investments to non-US stuff (mix of Canada, developed non-NA markets, and emerging markets). We all assume the US will continue to dominate economically, but that's far from a given. And at the current price-to-earnings ratio for the S&P 500, they really do need to continue to dominate to justify the current valuations.
You’re right on everything no doubt. With respect to valuations I’m finding a lot just go out the window when a company is successful. When things go sour the multiplier it’s trading at comes under scrutiny but for some of these companies high multipliers seems to be the norm and way of life. Just out of curiosity, where do you see Canada or another country benefiting from in the future? I’ve always been holding banks but they’ve been mediocre for years.
I’m old enough to remember that in the later 2000’s no one wanted the S&P here in Canada because it was performing so poorly in comparison to the TSX. I had clients in 2009-13 who absolutely refused to invest in the US on the basis that they were doomed. The markets are funny that way. If you had said in 2009 we’d see a decade of unequaled growth in the US, inflation would not be an issue and we’d see this enormous run you’d have been labelled a crackpot and no one would have taken you seriously. Of course, that’s exactly what happened.
My point is, just because “we” can’t see how Europe outdoes the US at this point, or can’t come up with a plausible scenario for how Canada would catch up to the US, doesn’t mean we won’t see it. It’s very easy to take what we know or think we know, apply it to the markets and say “with all these issues there’s no way that this can be the case”. In reality though, things can be very different.
tldr; or not very interested in Slavas opinion: reversion to the mean.
The Following User Says Thank You to Slava For This Useful Post: