Posted on May 24th, 2011 by Barry Schwartz

Canadian government bonds are overvalued and no longer provide any margin of safety.  The formula to value a bond is as follows.  You add the real yield to expected inflation to get the real adjusted fair value.  If the bond you are valuing, offers a yield less than this this formula, you are overpaying.  For […]

Posted on May 15th, 2011 by Barry Schwartz

In this weekend’s Globe and Mail, Rob Carrick wrote an article about the risks of over-weighting your portfolio in commodities. We are pleased to report that our clients have avoided this risk as a result of limited exposure to commodities. At the end of April, our average client had only 22% of their equities allocated to […]

Posted on May 11th, 2011 by David Baskin

In February, 2009, about twenty-six months ago, the Canadian dollar was worth only about 79.4 American cents.  To put it the other way around, it cost us $1.26 to buy an American dollar.  Today you can buy a greenback for only 95 of our cents.  That’s an appreciation of 32.7% in our currency.  What is […]

Posted on May 2nd, 2011 by Barry Schwartz

First a Haiku…O greater fool, mind’s lost. The wind swept you in Now you are left holding the bag. Gold and silver are great assets to have, if you like jewelry and silverware.  However for your portfolio, precious metals have been terrible investments.  From 1802-1996, gold delivered a compound return of .06% adjusted for inflation.   […]

Posted on April 20th, 2011 by Baskin Administrator

Inflation presentation 2011 Presentation delivered at the Saskatoon Club on April 12, 2011

Posted on April 11th, 2011 by David Baskin

One of the most basic principles of economics is trade-offs. When we make decisions, we give up one desirable thing to get something else we want. Take driving a car, for example. Every year in Canada about 2,900 people die in car accidents. If everyone was forced to drive at a maximum speed of 10 […]