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Are you ready for the HOT POTATO?
When it comes to investing, many prefer plain portfolios while others like to spice things up. To the more daring, the author offers a fiery take on MoneySense's conservative Couch Potato portfolio. Call it the Hot Potato. The basic Hot Potato method is inspired by money manager James Montier...
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Published in: | MoneySense (Toronto) 2016-04, Vol.18 (3), p.23 |
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creator | Rothery, Norm |
description | When it comes to investing, many prefer plain portfolios while others like to spice things up. To the more daring, the author offers a fiery take on MoneySense's conservative Couch Potato portfolio. Call it the Hot Potato. The basic Hot Potato method is inspired by money manager James Montier's 2003 article "Cheap Countries Outperform," which can be found in his book Behavioural Investing. Montier noted that the stock markets of countries that fared the best over the prior 12 months continued to outperform. It is a classic case of momentum in markets and they wanted to test whether a similar approach would work for Canadians. While the Hot Potato requires more attention, the effort is worth it because this portfolio would have gained an average of 12.0% annually from 1981 through 2015. While the Hot Potato generated good returns using annual data, it is well known that momentum tends to work better over shorter periods. |
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language | eng |
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source | ABI/INFORM global |
subjects | American dollar Exchange traded funds Fees & charges Index funds Investments Mutual funds Personal finance Portfolio management Stock exchanges Volatility |
title | Are you ready for the HOT POTATO? |
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