Tag Archives: inflation

The most dangerous asset class may surprise you: Cash!

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Depositphotos_16811249_s-2015Investors flee to cash during times of trouble.  However, far from being a safe haven, cash is potentially the most dangerous asset class for investors, luring investors into bigger psychological bubbles than even tech stocks and housing have historically.

We recently wrote about why investors might want to consider holding bonds rather than cash, even at current low and negative yields (see Why on earth would you hold a bond with a negative yield?).  A recent article (see Journey of Cash by Alex Gurevich) and further investor questions have inspired us to think a bit more specifically about cash and its merit (or not!) as an asset class in a well diversified portfolio.

Hold cash for known near-term purchases and an emergency fund

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Wisdom Tree Canada’s first 6 ETFs; plus 6 ways to prolong nest eggs

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wisdomtree-investments-squarelogo-1449147347386We mentioned this was coming in the FP early in June but it’s now official: the first batch of WisdomTree ETFs are now available in Canada.

While WisdomTree Canada opened its office earlier this year, the first six products started trading on the Toronto Stock Exchange Thursday (July 14).

The US parent company is best known for its dividend-weighted ETFs and currency-hedged equity strategies. The initial lineup is focused on the U.S., European and broad international equities. The Head of WisdomTree Canada is Raj Lala, pictured below.

Here’s what he said in a press release today:

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Raj Lala

“By combining the best elements of active and passive investing, WisdomTree’s Smart Beta ETFs give Canadians the opportunity to participate in effective, risk-managed investments. We look forward to growing our business in Canada through a commitment to anticipating and addressing key investor needs.”

Here are the six ETFs and their TSX tickers: Continue Reading…

Gold guru Peter Schiff says Goldmoney deal will draw millions to BitGold

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schiff
Peter Schiff (Twitter.com)

Author and US-based gold guru Peter Schiff is teaming up with a Canadian gold fin-tech company — Goldmoney Inc. — in a deal both parties expect will accelerate the firm’s growth into “millions” of users seeking a “real-money” alternative to the “fiat” currencies of the world’s central banks.

Initial details were revealed on Friday, when Toronto-based Goldmoney Inc. (trading as XAU on the TSX), announced its plan to acquire Schiff Gold Inc. (SGI) and form a marketing and service agreement with Schiff (pictured left).

The Hub last looked at Goldmoney and its Bitgold in this post in March: BitGold: a cure for savers frustrated with low or negative interest rates? The link also contains my blog on this for the Financial Post.

And we looked at a couple of recent books on the soaring gold price in a Hub post in June. You can find the review, which includes Schiff’s The Real Crash, in this Hub review titled The New Case for Gold. The link also contains my blog on this for Motley Fool Canada.

The Goldmoney release describes Schiff Gold Inc. (“SGI”) as a “private, US-based dealer in precious metals” that was launched in 2010 under the name Euro Pacific Precious Metals. It in turn was described as “one of the largest and fastest growing retail gold dealers” that services a large client base with buy and sell orders for precious metals, storage and vaulting arrangements and gold & silver IRA arrangement services.”

Schiff is the “LeBron James of the gold market”

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Keep your Fixed-Income Fire Extinguisher within reach

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fire extinguisher and sign isolated over a white backgroundBy James Redpath, CFA

Special to the Financial Independence Hub

Bonds are boring. They’re supposed to be.

In the relatively dry world of finance, one of the valuable functions that bonds (fixed income) provide is to increase the diversification and resilience of balanced portfolios — by serving as a fire extinguisher when times get tough, rather than an accelerant.

They’re designed to make money, but also to manage any potential sparks or flare-ups lit by their flashier equity counterparts. While no one has pulled the alarm in this new realm of negative interest rate policy imposed by certain central banks, it’s still a good idea for fixed-income investors to be aware of their bond holdings; they should check to ensure that, like a fire extinguisher kept in the kitchen, they’re still appropriate and ready to do the job they’re meant to should the need arise.

What’s happening with negative interest rates?

In 2014, the European Central Bank became the first major central bank to shift interest rates into negative territory. The central banks of Sweden, Denmark, Japan and Switzerland followed suit soon after.

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How to eat Healthily without Breaking the Bank

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By Sandy Cardy

Special to the Financial Independence Hub

The price of groceries is on the rise again. However, there are ways you can limit the amount of money you spend when it comes time to grocery shop.

During the holiday season, I wrote an article about over-consumption – the gist being that the over-consumption of credit can leave us with debt troubles and how over-consumption of the wrong foods can leave us with harmful health debt.

There’s a general consensus that it costs too much money to eat healthily all the time. While it’s true that natural food products can be quite expensive, especially if you eat gluten-free or vegan packaged foods, there are ways to stretch your dollar at the grocery store.

The rising cost of groceries has made headlines again; in 2015 the average Canadian household spent about $325 more on food and is expected to spend an extra $345 in 2016, according to the University of Guelph’s Food Institute.

Meat and produce are expected to see the biggest price jump, with meat seeing a 4.5 per cent increase and fruits and vegetables rising between 4 and 4.5 per cent this year.

There’s good news though! Eating healthy doesn’t have to come with a hefty price tag. By stocking up your pantry on a variety of everyday superfoods and pairing them with fresh ingredients, dinners to feed the family can cost you less.

Stock Your Pantry Continue Reading…