Articles
In this article, I will explain the different types of risks, highlight common investment pitfalls, and discuss actionable ways to navigate market volatility. Whether you’re a seasoned investor or just starting out, this guide should provide valuable lessons on managing risk and making informed financial decisions.
Everyone knows that Nvidia is doing really well making chips for Generative AI; depending on the day, it’s the world’s most valuable company. I am trying to find an undiscovered stock that might benefit from Gen AI. I read something about liquid cooling in the data centres…does that make sense?
2024 is coming to an end, which has marked a solid year for equity in both Canada and the U.S. markets, due to a favourable macro backdrop of interest rates easing and a meaningful slowdown in inflation. It has been a while since our last update of the CMS Model Portfolio. Before we go into details about the performance and changes to the portfolio during the year, we wanted to briefly discuss the strategy and the objectives of the portfolio.
Fifteen years ago, American investor Kevin Vogelsang caught the bug for buying Chinese stocks. He took a position in FAB Universal Corporation, a brand created in 2008 that had over 12,000 self-service kiosks located throughout China where customers would download music, movies, and TV episodes while watching video ads. After several tumultuous years, by 2017, FAB Universal finally ceased operations, making the shares worthless. Looking back on the experience in the Wall Street Journal, Vogelsang admitted he should have paid more attention to the company’s AMEX ticker: FU.
It has been many, many moons since I authored an article for Canadian MoneySaver. I was reminded of this when I was speaking at The Money Show in September 2024. There were many people that I knew, some from seemingly another lifetime. But now, we have grown older and greyer, and hopefully, wiser with the passage of time. At least some of us have. Just like many of this magazine’s readers.
In a prior article, we discussed some common mistakes investors should try to avoid when looking for big winners. A lot of times with investing, “simply” avoiding big mistakes is half the battle. It helps to cut off those left tail risks and bad outcomes and hopefully, at worst, keep mistakes small and easy to recover from. So, by tilting our odds of success away from some common mistakes, we can now look at what we think are common factors to look for when trying to determine if we have found that next big winner.
Historically, the U.S. healthcare industry has been considered a “defensive sector” as it is one of the U.S. economy’s most predictable and resilient sectors. The reasons are quite simple: people need medicines and proper medical treatment whether the economy is prospering or in a recession. Unlike the Canadian healthcare sector, where there are not many publicly traded healthcare companies, the U.S. market is highly dynamic; the industry has created some of the best performers in terms of value creation for shareholders over the years.
In recent years, self-employment has grown in popularity across Canada, with many individuals embracing entrepreneurship as a path to professional independence. The Canadian government provides many tax write-offs to Canadians, which may be desirable. However, the process of paying taxes and writing off expenses can be confusing for a newly self-employed entrepreneur. If you are newly self-employed, one of the most crucial aspects of your business to understand is taxation requirements as outlined by the Canadian Revenue Agency (CRA).
I wrote an article titled, The Latest Approach to Constructing Investment Portfolios, in May 2007 for Canadian MoneySaver. In that article, I showed two key concepts. First, how incredibly connected the world’s equity markets are. The direction of global markets plays a vital role in determining the course of the TSX or the S&P 500. World equity markets do not move in a vacuum.