My apologies, a ‘fear’ headline. The point is that a Balanced Fund, with 60% Equities and 40% Fixed Income, is 99% correlated to the Stock Market. So you would fully participate in the Bears. And yes the Bulls as well. So, when the next Bear comes along, will you fully participate?
Will Amazon hit $2000 next? Or will it retrace by 25%?
Everyone is paying attention to the Trump Rally in the USA, or the Canadian Banks, but take a look around, in 2017 so far, the TSX is flat/negative on the year.
If the Target Date is customized for you, if it knows about you, there is a 75% chance of achieving the target. If it doesn’t know about you, it’s an anonymous packaged product, then there is only a 45% chance of you achieving your target.
One component of Rules Based Investing is the ‘visual’ depiction of the Crosses. The Golden Cross tells you to do more Fundamental Analysis to begin investing. The Death Cross tells you it is probably best to exit your position (or the market).
A Target Date Fund is a packaged product, covered in Sessions 10 & 11 of the CIC Course. But Session 14 of the CIC Course offers a Commentary on this offering. Note: A full-service IIROC investment advisor, perhaps a Trusted Wealth Professional, can customize a similar portfolio for you in this uncertain period of (rising) interest rates.
Target Date Funds are being sold heavily at the Top of the Market, a ‘scheme’ to Lock-In investors, perhaps? But they may not be for you; look a Fees, and Performance. Plus, do they really care about you? Or know about you?
If it looks like an ETF, acts like an ETF, but is more expensive than an ETF, should you just buy an ETF? True there are specialty Mutual Funds, but with ‘crowded’ trading today, at a market Peak, there are many ETF clones in existence.
Valeant has been on a wild ride in the last 3 years, peaking at $330 CDN and then falling below $20. Famous activist investor Bill Ackman, has been In and then Out of Valeant. Where will Valeant be 3 years from now?
When TELSA starts making a profit, how will it be valued, as a Growth stock? As a Value stock? Or will the Dream become a Nightmare first?
