No one likes permanent loss of capital and no one seeks to have a drop in the value of his or her assets. What we need to understand is if you can sleep at night when your monthly statement value has dropped by some amount. More importantly, will it impact your ability to enjoy your life and meet your personal financial obligations, if this were to occur?
Every time you sit down with an investment professional, you are asked what your risk tolerance is. Regardless of the method for defining the risk you'll accept in your investment portfolio, you are wise to define the meaning at the outset with the person administering your money. It will save you a lot of sleepless nights.
Coupled with the outside noise of market emotions, our individual ability to justify decisions based on sometimes irrelevant and biased information, makes the seemingly simple axiom, 'buy low, sell high' difficult to execute efficiently. Luckily, there are 3 easy ways that you can create and manage an emotional firewall between you and your investments:
Pierre Lassonde, one of the world's foremost experts on gold, says the only way's up for the shiny stuff. He should know and has made his fortune in the gold game. This week, he spoke at a mining seminar in Toronto organized by mining consultant Terry Ortsland, Chair of the Mineral Resource Analyst Group.
Last night Obama needed to win. There really was no other option. Obama was so on (and then some) that you could feel Bill Maher's elation when he tweeted about the return of the "Black Ninja." Then it got seriously real when the issue of energy and drilling companies motivated both to pretty much get into each other's grills creating one of many unexpected and unforgettable moments. Moments such as a woman named Lorraine. Or was it Lorianne? In fact, there was a binder full of women. Romney attempting to spike the ball by asking Obama repeatedly if he has in fact checked his (much smaller) pension. And Michelle and Ann's fashion blunder.
In the wake of May's bond market rally from heaven, administered rates have seen additional downward pressure into June. GIC rates have extended their decline, while Canadian mortgage rates are downright juicy. Given this environment, it's no surprise that Canadians are uncertain as to whether they should be paying down debt instead of building investment nest eggs.