Ultrashort Bond ETFs
Today I’m going to talk a bit about an asset class I recently started using, which are Ultrashort Bond ETFs. The name makes them sound like something that invests in companies that produce extreme board shorts or something, but it’s actually far more mundane. What are Ultrashorts? Remember that there are two basic asset classes in an investment portfolio: Equity and Fixed Income. Equity generally invests in companies, while fixed income generally invests in bonds. I know there are more esoteric things like Preferred Shares (which we write about here), but let’s keep things simple for this example. When picking […]
Does the Yield Curve Inverting Mean a Recession is Coming?
The past few days have been filled with breathless media reports, all of which admittedly sound scary. “Yield curve inversion: recession sign sparks panic” The panic over yield curve inversion, explained, Vox.com Now that one of the most reliable recession indicators in the market got triggered, investors across the globe are starting to worry if this could mean the U.S. economy is slowing down. The US bond yield curve has inverted. Here’s what it means, NBC That’s because on Friday, March 22, 2019, the US Treasury yield curve inverted. And because the yield curve inverting has historically signalled an […]
The Yield Shield: How It Protects You From Recessions
How Does a Pension Affect My 401(k)/RRSP Withdrawal?
Pensions. Remember those things? No? Well then gather round, young Millennials. It’s Story Time! You see, back in the days of yore (i.e. the 60’s), companies had these magical things called “pensions” that they offered to their employees as part of this other magical thing called “benefits.” I know, I know, it sounds crazy but it was a different time. I also think cars worked by sticking your feet through the bottom and running on the pavement back then. ANYHOO, here’s how these things worked. The employer would automatically take a small contribution off their employee’s paycheck (pre-tax, of course). […]
Norbert’s Gambit: How to Exchange Money Without Paying Fees
We frequently get questions from our readers about how we handle exchanging foreign currencies while living in so many countries. And our standard answer was: a combination of a credit card with no forex fees and a checking account that reimburses foreign ATM access fees. This way, you could simply hold most of your wealth in one currency, then spend it frictionlessly all around the world! And that system has worked out pretty well for us. Until. NOW! Why now? Well, while we were working the vast majority of our money was earned in Canadian dollars, so our portfolio was […]