Friday, July 9, 2010

Short Takes: Bad Stock Predictions, Sickly Dogs of the Dow, and more

1. Larry Swedroe holds Fortune Magazine’s nose in their year 2000 list of “stocks to last the decade”. It’s important (and funny) to check up on these silly predictions that seemed smart at the time. The most amusing two entries were Enron and Nortel.

2. Remember the “Dogs of the Dow” dividend yield approach to beating the market? Preet reports that it has underperformed the market for the last 15 years. Trying to follow the latest trend is a great way to avoid the problem of having too much money. On the other hand, Larry MacDonald reports that the Canadian version is still beating the market.

3. Potato provides details on his belief that we’re in a housing bubble.

4. Canadian Capitalist looks at competing one-liners for and against do-it-yourself investing.

5. Big Cajun Man pulls out a math word with his third lemma of money.

6. Mike at Money Smarts has a great list of resources to check before agreeing to rent an apartment. It has been a while since I rented, but I do remember moving into a terrible building for a year. The owner had the renters assigned to different floors by race, and that isn’t even on my top 5 list of complaints about him. Number one was a forged cheque on my bank account.

7. Ed Rempel tries to defend active investment managers, but gets ripped apart by commenters.

8. Financial Highway predicts how credit card companies will react to new rules designed to protect consumers. This is a good example of unintended consequences.


  1. Thanks for the link Michael.

    I can't believe that landlord separated floors by race. Lol.


  2. Thanks for the link :)

    Ouch on the landlord story! What were the other 4 items on the top 5 list?

  3. @Potato: Let's see ... it's been a while. In no particular order:

    - Repeatedly accused me and my wife of committing acts of vandalism (whatever the latest problem was)

    - Promised to help sublet the apartment for 4 months, but actually blocked attempts to do so

    - Refused to return a hefty key deposit until I threatened to keep the keys

    - Scavenged our apartment for things like shower-heads while we were away

    - Had a new superintendent just about every month

  4. Ah yes, I remember my student days living in a downtown rooming house. The landlord was a nice fellow but the other roomers were quite a mix, from students like me to ex-cons just out of jail. And, I kid you not, while I was there, one was arrested and found guilty of manslaughter (incredibly, he was out of jail 14 months later).

  5. @Larry: I've heard of problem neighbours, but manslaughter takes it to a new level.