Ignoring market headlines isn't putting your head in the sand; it's a key to a basic investing tenet.
Someday in the foreseeable future, the “fit will hit the shan” and these valuations will come back down to earth. With Trumpski as President, who knows what might trigger a major correction or worse? Iran, China, outrageous deficits, higher interest rates ?
There are two broad approaches to investing: active and passive. Both aim to make money but how do they differ?
The S&P 500 is up 155% since 2012, but that is unlikely to continue. We have been in an economic expansion since 2009. We are currently in month 116 of this expansion. (The longest economic expansion in modern history was 120 months). Similarly, the stock market, at least the US market, has been on a... Continue Reading →
PART 2: Real Estate Investment Trusts (REITs) In addition to Dividend Growers as a means to inflation proof your investment income, Real Estate Investment Trust (REIT) ETFs offer another option. REITs are companies that invest in a wide variety of real estate, including shopping centres, office buildings, retirement residences, hotels, apartment buildings, and industrial/warehouse buildings.... Continue Reading →
PART 1: Dividend Growers A colleague recently raised a very good question. How do I invest so that my income keeps up with inflation? We are all living much longer and we need to develop investing strategies that will provide cost of living adjusted income for 20, 30 years or more. With inflation at even... Continue Reading →