Weekend Reading – Market Tumbles Edition

Quite the day yesterday eh folks?

Seeing my equity values crash yesterday (and my bonds rise) should have given me cause for concern.  At least it used to.  Actually, I was kinda happy markets plummeted almost 3.5% yesterday because that means the stuff I was looking to buy just went on sale.

Maybe I’ve hit my head too many times, or, maybe I’m getting wiser at this investment thing – I really don’t know.  All I know is, when things are cheaper, they are certaintly more attractive to me and dividend-paying stocks are no exception.  I don’t have a great deal of money to invest but I going to try and save extra hard this month to find more cash to deploy into my investment account.  We’ve got a healthy mortgage left and a line of credit (LOC) running from our roof installation, so they must take priority.  We’ll be making a lump sum payment on our LOC today actually.  However, over the coming weeks, I’m going to try and find some ways to save some additional monies in case this sale continues.  That’s the thing about them – they don’t last long 🙂

While watching the markets tumble this past week, I managed to read a bunch of quality blogposts.  Take some time this weekend if you can to check them out.

Passive Income Earner sold some Canadian stocks in favour of getting some cash to buy some U.S. stocks – check out what he’s thinking of buying.

Michael James talked about working for negative wage, when describing the amount of effort some active investors must be logging in their quest to beat the market.   My take – there is some truth to this.

Jim from Retire Happy Blog asked what rate of return can you expect from the stock market?  My take – take your 7% or 8% over the next couple of decades and be happy with that.

Dividend Mantra told us about his recent buy of ConocoPhillips (COP:US).

Mich at BeatingTheIndex gave us an update on his TFSA portfolio.

Canadian Personal Finance Blog had some witty (and weird) questions not to ask during your next job hunting exercise.

Kevin at Invest It Wisely had a guest post from a blogger who helped informed readers how to plan for the ultimate retirement.

Canadian Capitalist responded to Balance Junkie’s post about the sub-par performance of the Global Couch Potato over the last decade.   This article was written by Dan Bortolotti for MoneySense magazine, and Dan is the Canadian Couch Potato.

My take:  While I agree with Balance Junkie the performance of a Global Couch Potato portfolio has been less than stellar over the last decade (about 4% return) I’d argue many investors who owned only actively managed mutual funds probably did much worse than that.

Balance Junkie took some time to respond to Canadian Capitalist and Canadian Couch Potato, offerring very constructive rebuttals on her position.  I commend all writers to sticking to their guns and writing what they believe in.

Canadian Couch Potato, in his defence of the passive investing strategy (and MoneySense article) tells us why passive investors aren’t really lazy though.

My favourite Monk informed us how to build a $150,000 portfolio by age 30.  I wish I read his article, oh, about 10 years ago 🙂

The Dividend Guy Blog took up my offer to post his asset allocation.  Thanks Mike, it was good information!

Kevin Press over at Sun Life Financial told us about three reasons investors might be a little cross with the state of the U.S. economy.

A new blog, The Wealthy Canadian, has really caught me eye.  It might be a new blog, but he’s an old friend.  Welcome back!  To others, check out these quality articles written by a 30-something who has done so well for himself, he can “leave the workforce at any time I see fit and at an early age.”  That’s right from his “About” page – honest.

Taking a small position in HGD (Global Gold Bear ETF).

Aeroplan vs. Air Miles – time to switch things up?

Considering Dividend Reinvestment Plans (DRIPs) for his Portfolio (Part 1 of 2).  I expect Part 2 will be posted shortly 🙂

 

Millionaire Teacher gave us a breakdown of his money and how he invests it, and why.

Larry MacDonald asked readers how will the housing bubble pop?  My take – with a pretty loud bang at some point.

Canadian Mortgage Trends informed us there was an epic landside in bond yields.

Robert at DIY Investor stressed the value of indexing comes from knowing where you are.

Krystal at GMBMFB reported on her August 2011 goals.  Wow, she is driven!

Susan Brunner gave us a great review of ATCO Ltd.

Mike from Money Smarts Blog answered the question why rebalance your portfolio asset allocation.  Good stuff Mike.

Young & Thrifty wrote a cheeky article asking if financially independent women are a turn on?

 

I’ll be back next week with an update on my dividend income for July and hopefully another article or two.

Happy reading everyone and enjoy your weekend!

18 Responses to "Weekend Reading – Market Tumbles Edition"

  1. Mark:

    Thanks for the intelligent round-up — you put a lot of work into that!

    I am especially grateful for the link to the debate going on at the Balance Junkie blog. That’s an important discussion, in my assessment (I am biased, to be sure).

    Take care.

    Rob

    Reply
    1. @Rob,

      Thanks for stopping by and your comments. I think all the writers did a pretty nice job of being professional and diplomatic. Everyone has their own bias and perspective, not to mention experience with what works and what doesn’t for them. That is a great thing. Sure, there are opposing views but doesn’t that just make personal finance and investing THAT much more interesting? I think it does 🙂

      Reply
    1. @Balance Junkie,

      No problems! I respect you for sticking to your beliefs and sharing those with your readers.

      I hope I find the bargins as well! Even if I don’t, I don’t mind sharing my missed opportunities – hopefully those don’t happen too often 🙂

      Reply
    1. @Michael,

      Thanks, likely will be short-lived eh? Like most other declines.

      Have a good weekend and see you in a couple of weeks.

      Reply
  2. The other factors at play are our friends inflation…(food, gas, etc.) and taxes (HST,property taxes, income taxes, etc.)

    Just to break even I figure one needs a 5% to 6% real return. It would be great if some else could come up with a number which includes All Taxes, and a real inflation number to come up with a break even number. So a market return of 6% may only be a 1% or 0% rate of return.

    In many ways, the market gains (in people’s funds, like RRSPs, TFSA, Open accounts) is really their own money over the last ten years.

    Reply

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