Insights: Canadian housing, investing at the worst times + dining taboos
Good reads:
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·???????? Weekly Investment Strategy
·???????? The Miracle of U.S. Equities
·???????? The great wealth transfer is under way. But what if you don’t trust your kids with the money?
·???????? Charted: Global GHG Emissions, by Sector
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Best quote of the week:
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"Politeness [is] a sign of dignity, not subservience." – Theodore Roosevelt
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Best visuals of the week:
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Since I discussed Canadian housing a bit last week, I thought I’d follow it up with this chart from RBC Global Asset Management.
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According to RBC, the Canadian stock market has outperformed the Canadian housing market since 2005.
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However, it’s important to note that this chart is comparing two non-leveraged investments (stock market vs home ownership without a mortgage). Realistically, that isn’t the case when it comes to the way many people invest.
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The average investor doesn’t tend to use leverage with their portfolios, but many are using leverage with their real estate (~60% of Canadian homeowners have a mortgage).
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At the end of the day, it’s important to note that one isn’t better than the other though. There are plenty of plusses and minuses to each. As with all your financial assets, it’s best to have some diversification and not have all your eggs in one basket.
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Another popular topic lately has been the idea of timing the market. Investors have been wondering whether markets are going to go up or down with the upcoming Trump presidency and whether they should be buying or selling. Many have been wondering if it’s a good time to invest or a bad time to invest.
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The short answer is that if you’re a long-term investor, it’s always a good time to invest. Sure, in a perfect world, you’d able to miraculously time your entry for market bottoms and exit at market tops, but that’s just not possible. Time in the market, rather than timing the market, is what matters most for long-term investors.
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Here is a great chart from A Wealth of Common Sense that exemplifies this concept.? It looks at historical returns from some of the worst starting points in stock market history to be an investor. As noted in the article, “The results have been spectacular even from awful starting points. Time heals all wounds in the stock market.”
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Beyond the markets:
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If you’re a world traveler, then you may already know some of these dining-related taboos.? If you’re an aspiring one, take note!
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·???????? According to Chinese tradition, long noodles symbolize a long life. If you’re lucky enough to eat a big steaming bowl of long noodles, don’t cut them—it means cutting a long life short.
·???????? While eating at the table, you should never point your chopsticks at another person.
·???????? In Japan, families stick chopsticks vertically into bowls of rice as an offering to the dead. You should never place chopsticks vertically in a bowl of food at a restaurant; the gesture is believed to put a curse on the restaurant owner.
·???????? As a sign of proper manners in the UK, you should always tilt a bowl of soup away from you while you are eating from it. Manners also dictate that you should spoon the soup away from you, toward the opposite side of the bowl while you’re eating.
·???????? As a sign of respect in Korea, you should never begin eating at the dinner table until the eldest or most senior person has begun eating.
·???????? While dining in Italy, you should never ask for extra cheese unless it is offered to you. It’s seen as a challenge of the chef’s cooking abilities.
·???????? If you finish a bottle of vodka, the empty bottle should always be placed on the ground. Russians believe that placing an empty bottle back on the table causes bad luck.
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Source: Mental Floss
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Thanks for reading, and I wish everyone a wonderful weekend!
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Cheers,
Kim
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Kim Inglis, BCom, CIM, PFP, FCSI, RIAC
Senior Portfolio Manager
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T: 416.777.6417 (Toronto)
T: 604.654.1160 (Vancouver)
T: 250.979.1803 (Kelowna)
TF: 1.877.363.1024
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