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Year of the Yo-Yo

In 2011, the S. & P. 500 finished the year where it started. (To be precise, it fell 0.003 per cent.) But it was anything but a placid year in the stock market. Instead, there was extraordinary tumult throughout 2011, with a series of sharp rallies and brutal selloffs, the biggest of which sent the market down seventeen per cent in a couple of weeks. Even on a daily basis, stocks were startlingly volatile: the Dow Jones Industrial Average moved more than a hundred...

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Posted January 23, 2012 @ 6:53pm

Three behaviors that can affect your investment performance

Investors who are believers in the so-called efficient market hypothesis were shaken up yet again when the markets didn’t factor in all available information during the heady days of subprime lending. Indeed, they have had to cede some ground to behavioral economists who point to the role of bias in financial decisions.

The efficient market hypothesis essentially says that investors cannot beat the markets over time since stock prices are based on all available information. The...

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Posted January 3, 2012 @ 5:04pm

Why ‘I Don’t Know’ Is Often Your Best Money Answer

December 19, 2011, 1:00 pm By CARL RICHARDS. source: The New York TIMES

Of all the phrases in the financial planning world, “I don’t know” may well be the most powerful.

There are other phrases like “it depends” that are similar, but underlying them all is the fact that we are trying to make...

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Posted December 21, 2011 @ 10:13pm

Five things Wall Street doesn’t want you to know

Dec 10, 2011 – 9:00 AM ET | Last Updated: Dec 12, 2011 11:27 AM ET

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Posted December 12, 2011 @ 11:11pm

Can the Pros Time the Market?

Posted by Dan Bortolotti at mail@canadiancouchpotato.com.

November 28, 2011

I never meant to make you cry
And though I know I shouldn’t call
It just reminds us of the cost
Of everything we’ve lost
Bad timing, that’s all
Bad Timing, Blue Rodeo

One of the...

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Posted November 28, 2011 @ 5:28pm

Stay calm in the sea of volatility

Stay the course and remain calm. That’s the message from the Portfolio Management Association of Canada’s membership on how to best cope with current market volatility and global economic troubles.

The association recently polled its members—approximately 105 investment management firms representing more than $800 billion in assets under management—on the issues and challenges and opportunities they’re facing as an...

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Posted November 23, 2011 @ 5:37pm

Worried about Europe? Lessons from Canada's 'basket case'

Nov 21, 2011 – 8:58 AM ET

By Randall Palmer and Louise Egan

OTTAWA — Finance officials bit their nails and nervously watched the clock. There were 30 minutes left in a bond auction aimed at funding...

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Posted November 22, 2011 @ 6:12pm

Can we get some service here?

By Dan Bortolotti | From MoneySense Magazine, November 2011

I recently got a call from a fellow journalist—I’ll call her Natalie—who wanted a second opinion on her investments. Natalie had been happy with...

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Posted November 16, 2011 @ 10:01pm

Investors flee the market, miss big gains

Investors flee the market, miss big gains

By Larry Swedroe

 

(MoneyWatch)

We've already seen investors miss the greatest bull market of the past 70 years due to panic selling from the...

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Posted November 15, 2011 @ 6:28pm

Don't Blink! The Hazards of Confidence

NEW YORK TIMES

By DANIEL KAHNEMAN

Oct 19, 2011

Many decades ago I spent what seemed like a great deal of time under a scorching sun, watching groups of...

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Posted November 14, 2011 @ 5:34pm