FEBRUARY 2016
Irrational Investing - Why Good People Make Bad Investment Choices
Matt Poyner P.9
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SPECIAL FEATURES BTSX – 2015/2016 Annual Update
Ross Grant 6
Irrational Investing- Why Good People Make Bad Investment Choices Matt Poyner 9 Is Silver Worth A Play During The Commodity Rout? Philip MacKellar and Benj Gallander 12 21 Ways To Reduce Investment Management Fees Is It Time To Buy Commodities?
Warren MacKenzie 14 Andrew Hepburn 17
Are My Investment Advisor’s Cookie Cutter Asset Mix Recommendations Hurting My Performance?
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Why Your Brain May Not Be Helping You Make The Best Decisions Alan MacDonald 21 Will That Be “Buy”, “Sell” Or “Hold”? The Contented Investor
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Mortgage Tips For Buying Investment Properties
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US Voluntary Disclosure Program Updated
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Is Bigger Really Better? Leasing the Right Size and Shape of Commercial Space Jeff Grandfield and Dale Willerton – The Lease Coach 35
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EDITOR-IN-CHIEF - Peter Hodson MANAGING EDITOR: Lana Sanichar CONTRIBUTING EDITORS Ed Arbuckle, Margot Bai, Robert Barney, Dan Bortolotti, Ian Burns, Bruce Cappon, John De Goey, Donald Dony, David Ensor, Ken Finkelstein, Derek Foster, Benj Gallander, Robert Gibb, Andrew Hepburn, Shelley Johnston, Robert Keats, Cynthia Kett, Ken Kivenko, Camillo Lento, Marie-Josée Loiselle, Alan MacDonald, Brenda MacDonald, Gina Macdonald, Robert MacKenzie, Ross McShane, Ryan Modesto, Caroline Nalbantoglu, Tim Parris, Peter Premachuk, John Prescott, Kyle Prevost, Brian Quinlan, Wynn Quon, Rino Racanelli, Colin Ritchie, Scott Ronalds, Norm Rothery, Stephane Ruah, David Stanley, John Stephenson, Brian Tang, Angelo Vicere, Becky Wong. MEMBERSHIP RATES - All rates for Canadian residents are printed on the inside back cover. Non-residents of Canada may purchase the online edition only – at $19.99 for one year’s service. Canadian MoneySaver (CMS) is published by The Canadian Money Saver Inc., 55 King Street West, Suite 700, Kitchener, ON N2G 4W1 Tel: 519-772-7632. Office hours: 9:30 am to 1:30 pm EST Website: http://www.canadianmoneysaver.ca E-mail: moneyinfo@canadianmoneysaver.ca PRIVACY POLICY - CMS may make its members’ mailing list or e-mail addresses available to carefully screened companies or organizations offering products or services that may be of interest to you. If you prefer not to receive these offers, send us your mailing label with “Do Not Rent” written on it. (Required statement. We do not rent addresses.) Canadian MoneySaver publishes monthly with three double issues (July/Aug, Nov/Dec and March/April). Canadian MoneySaver is an independent, totally membership-funded magazine. The information contained in Canadian MoneySaver is obtained from sources believed to be reliable. However, we cannot represent that it is accurate or complete. The views expressed are those of the writers and not necessarily those of The Canadian Money Saver Inc. Neither the information nor any opinion expressed constitutes a solicitation by us for the purchase or sale of any securities or commodities. Canadian MoneySaver is distributed with the explicit understanding that Canadian MoneySaver, its publisher or writers cannot be held responsible for errors or omissions. Shareholders of The Canadian Money Saver Inc, editors and contributors may at times have positions in mentioned investments/securities. Copyright © 2015. All rights reserved. No reproduction, transmission or publication of any of the contents of Canadian MoneySaver is permitted without the express prior consent of the copyright owner. To obtain permission to use any part of Canadian MoneySaver, contact Peter Hodson. ® – Canadian MoneySaver is a Registered Canadian Trade Mark of The Canadian Money Saver Inc. Printed in Canada ISSN: 0713-3286
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FEBRUARY 2016, Volume 35, Number 5
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I
don’t know about you, but I am starting to feel like Bill Murray in that great movie, Groundhog Day. After all, it is February, and, well, I always thought February 2nd should be a Holiday. Every day I wake up, there is another problem in the stock market or the world. China has devalued its currency (again). China has halted trading (again). Oil has declined (again). The market has dropped (again). Metals prices are plunging (again). The Canadian dollar has dropped (again). Terrorists have struck (again). I remember, as a portfolio manager in October 2008, describing my day-to-day work experience to friends. The market was dropping 5%, 6% or more per day, and I used this analogy: ‘well, it’s like going to work each day, and then someone (in this case the market) hits you over the head with a shovel for 10 hours, and then you go home’. Then you wake up the next day and go back in for more punishment. I remember, in those dark days of the financial crisis, going home after my mutual fund was down ONLY 1% that day and thinking, ‘hey, that was a pretty good day’. I had lost investors 1% in a day and considered it a good performance. That’s how bad things were. So here we are again, with the worst market start in years, currencies dropping everywhere and investors throwing in the towel. What to do? Well, like Phil Connors (Murray’s character in the movie), learn from what is occurring. As an investor, there is nothing new here. China always causes problems. Oil is a cyclical commodity. Terrorists have been around for centuries. Take advantage of the fear, and scoop up good companies getting sold. Remember that most recessions are very short—nine months on average. Remember that markets always look really bad when they are falling, but, just like in the movie, things can turn around. Phil uses his time loop in the movie to learn French, play the piano, sculpt ice and impress everyone. He ends up with the girl of his dreams. So, things are bad in the market. So what? You have seen it all before. Take advantage of this fact, knowing that this is just another ‘crisis’ that is going to end.
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