Charles Ellis, the author of Winning the Loser’s Game, explains in the following video why he thinks indexing is an appropriate strategy for pretty much every investor out there.
- The Bank of Canada decided to increase interest rates by 1/4 percent this week. In the statement accompanying its interest rate decision, the Bank noted the “unusual uncertainty” surrounding its economic outlook. The chartered banks increased the Prime Interest Rate to which consumer loans and variable-rate mortgages are linked to 3 percent.
- With interest rates heading up and bond yields dropping, Larry MacDonald wonders if this is one of those periods in which it may be better to go with a fixed-rate mortgage.
- The Globe and Mail reported today that the newly created Canadian Employment Insurance Financing Board has recommended a 8.7 percent hike in employee and employer EI premiums for the 2011 calendar year. While on the subject of EI, the temporary program that extends benefits by 5 weeks for all employees and up to 20 additional weeks for some employees will soon expire.
- I agree with Canadian Couch Potato that pretty much every portfolio needs some bonds. Here is a rundown on how to choose a Canadian bond index fund.
- I never did get around to reading This Time is Different: Eight Centuries of Financial Folly. Balance Junkie, on the other hand did and reviewed it here.
- Remember Labour-Sponsored Investment Funds? Money Smarts Blog takes us down memory lane by sharing an important investing lesson he learned through buying these lemons.
- Canadian Financial Stuff pointed out that new rules on RESP withdrawals may cause cash-flow problems. Don’t let it deter you though. The RESP is still a great way to save for a child’s education.
- The less you trade, the better your portfolio will be (on average). Michael James wrote about one more reason why you may want to trade less.
- Preet of Where Does All Your Money Go? is writing a new column for Globe Investor. You can find his first column on how stock picking contests are encouraging kids to treat investing as gambling here.
- Million Dollar Journey featured a guest post on what to do if your insurance premiums are about to jump.
Have a great weekend everyone!