Investment “rules” that were relevant for a century are obsolete. They were based on a world where economies grew, people’s standard of living increased and outcomes tomorrow better than today. Arguably each of these conditions will not hold in the future but if they don't, neither do the rules of thumb that guided investing last century. These guiding principles developed and worked in a world that that no longer exists but applying them in the future will result in devastating financial outcomes. [Let me explain.] Words: 1261

The Canadian housing bubble will never blow up. There’s simply too much “plankton” in the water. It keeps the “food chain” healthy and offers ample nourishment for the “big wales and sharks” and shorting the Canadian housing bubble is useless. Here's why.

In 1990, Canadians owed 85 cents for every dollar of annual disposable income. Today that number has grown to a record $1.63. Meanwhile, Canadians are saving just 3.6% of their incomes today – a drop from 12% in 1990. Rising household debt levels have some sounding the alarm.

We understand the appeal of passive investing. It offers lower fees and simplicity and many investors are skeptical about the ability of active managers to consistently beat a benchmark...yet there’s also a lot of evidence supporting the benefits of an active approach. Today, we see many risks that are hard to avoid by hugging a benchmark—and opportunities that simply cannot be captured by going passive. While not every point is relevant to every investor, in every market, we can think of ten good reasons to stay active in equities today.

The current credit-bubble boom in stocks and bonds is getting long in tooth after 34 years of relentless expansion, and the rise of securities to 400% of GDP is reaching extremes that are increasingly difficult to support, much less push higher. As such, a reversion to generational lows is inevitable, and a valuation level around 50% of GDP for stocks is a fair target. This implies a 75% decline in both stocks and bonds within the next decade, if not sooner.

The real estate sector in Canada is in a bubble that could burst at any time according to the IMF, Deutsch Bank, the Bank of Canada and The Economist.

As with most financial habits, knowing what you need to do is the easy part. Following through with it is where most people run into trouble. To help you in that regard HERE are the 4 most important factors that help determine whether or not you’ll have a large enough nest egg to cover your living expenses during retirement.

Where does the Dow go from here? Maybe up a little higher but, more likely, it's all downhill from here though perhaps that statement is misleading. More like, down a cliff.

There is literally nowhere for the bond market to go except down and, when this bull market turns into a bear, it will create chaos and financial devastation all over the planet.

Equity markets in the U.S. have bounced back over the past couple of weeks and have shown strong momentum to the upside. We are now well into the fourth year of a rising equity market and we might now reasonably ask the obvious question, "When might this end?"