Don’t go quietly

DOUG By Guest Blogger Doug Rowat

Remember Dr. David Dao?

Here’s a refresher:

Thankfully, Dr. Dao was awarded an undisclosed, but likely substantial, settlement from United Airlines and two of the security officers involved in the incident were fired.

Remarkably, however, another culprit was indirectly blamed for the debacle: ETFs. How so? Well, the logic goes something like this: the US airline sector has a massive amount of passive, institutional ownership (Vanguard being a prime example), which has contributed to a dramatic decline in competition amongst carriers and therefore to a corresponding spike in passenger fares and decline in passenger care and service.

Poor passive ETFs. They’re just quietly going about their business outperforming active managers and all they get for their trouble is a metaphorical beating and drag down the aisle.

The overall argument against passive ETF investing is actually sound. The New Yorker sums it up best:

[With passive investing] investment decisions are increasingly on autopilot: more and more money will pour into a set of firms largely independent of the considerations that have traditionally guided investors, such as supply, demand, management performance, growth potential, or broader economic factors.

A market with more passive investors than active ones will continue to push money into the largest firms, whether these companies are actually performing strongly or not.

Agreed. The investing world actually needs active management. Active management is required to punish those companies that are operating poorly. It’s needed to prevent a valuable company from perpetually remaining valuable. Security pricing must be a gauge of a firm’s underlying prospects. If it isn’t, then asset bubbles will form, particularly amongst larger companies, and smaller firms that are deserving of capital, and likely need it more, will be denied.

However, the problem with this argument is that the investment industry is still dominated by active management. In other words, the problem is—and likely will remain so for decades—only a theoretical one.

No one is arguing that the ETF industry isn’t growing faster than the mutual fund industry. It’s winning this race by a long shot. According to the Investment Company Institute, from 2012 to 2016 the US mutual fund industry grew by 25% whereas the ETF industry grew by almost 90%. However, the ETF industry is coming from so far behind that it’s not even close to rivalling the mutual fund industry in overall size. Unfortunately, the 2017 data from ICI probably won’t be available until April, but the data from 2012 to 2016 still paints a clear picture: ETFs may be growing faster, but they significantly lag mutual funds in overall assets. As a ratio, mutual funds ‘outsize’ ETFs by 6.5:1, or by almost US$14 trillion (with a ‘t’).

US ETF Industry is Growing, but is Still Dwarfed by Mutual Funds

Source: Investment Company Institute

Further, within the ETF industry itself, there is a significant shift towards active management. No one is making any money charging 6 or 7 basis points to passively track an underlying index. The ETF industry is realizing that it needs to offer more and therefore charge more. This is one reason why so many mutual fund companies are now issuing ETFs: they want to capitalize on the sector’s growth, but also want to leverage their active management roots in order to charge more. The Canadian ETF space, for example, is now almost 30% actively managed, according to Bloomberg data, and these actively managed ETFs charge, on average, 33% more than passive ETFs.

Naturally, the attacks on passive ETFs are primarily coming from active managers. As is common knowledge at this point, actively managed mutual funds almost always underperform their benchmarks with high fees being the main reason. According to the latest SPIVA US Scorecard, about 90% of US large-cap fund managers have underperformed their benchmarks over the past 15 years. So, poorly performing and expensive active managers still need to be purged from the system. And it certainly strikes me as easier to discredit ETFs by focusing on the theoretical consequences of passive investing at some point in the distant future rather than addressing the clear, and already present, problems within the actively managed mutual fund industry.

And ask United Airlines how well the discredit-through-misrepresentation tactic works. Recall that United Airlines CEO Oscar Munoz initially tried to imply that Dr. Dao was primarily responsible for his own broken, bloody face because he “defied” security officers. Not well played.

The public, like investors, eventually sees the truth.

Doug Rowat, FCSI® is Portfolio Manager with Turner Investments and Senior Vice President, Private Client Group, Raymond James Ltd.

139 comments ↓

#1 NoName on 02.24.18 at 12:30 pm

how do you like them oranges…
https://www.theverge.com/2018/2/7/16984460/citrus-fruits-genome-sequencing-himalayas-evolution-breeding

#2 For those about to flop... on 02.24.18 at 12:40 pm

Weekend Rewind.

This week in howmuch articles.

Another light week.

I heard they had a knees up in Lunenburg…

M43BC

This Map Shows How Gas Taxes Determine the Price at the Pump.

https://howmuch.net/articles/gas-prices-and-taxes

This Graph Shows the Average Tax Refund in Every State.

https://howmuch.net/articles/average-tax-refund-in-every-state

#3 For those about to flop... on 02.24.18 at 12:46 pm

Thankfully, Dr. Dao was awarded an undisclosed, but likely substantial, settlement from United Airlines and two of the security officers involved in the incident were fired.-Doug Rowat.

//////////////////

Rumoured to be $10 million USD

You know what they say about rumours?

It was a great album by Fleetwood Mac…

M43BC

#4 Dave on 02.24.18 at 1:15 pm

Hopefully the rise in minimum wage will bring tips back from epic heights. Went to a restaurant and the default setting on the credit card machine for tips:
1) 15%
2) 18%
3) 21%
4) Other

Average families cant afford this, complete non sense. FYI, I picked #4

#5 The Truth on 02.24.18 at 1:28 pm

There are some of us who see the truth in areas that most don’t walk upon. They are not critical thinkers and are missing reality because they believe in the MSM or the fake news.

#6 Smoking Man on 02.24.18 at 1:29 pm

Made an amazing discovery last night. If your reading glasses are not quite doing it for you. Put on a second pair. Boom you can see again. Try it. I’m not kidding.

You tube videos in 3d. Amazing.
Fyi. rich people the lunatics are coming for your money. Listen the line of questioning when a lefty loons confronts a rich dude on global warming.

Moral of the story if you don’t feel like watching the clip.
If sea level is going to go up by ten feet how come the banks give out 40 year mortgage on Florida properties?

Makes ya think.

https://youtu.be/NjlC02NsIt0

#7 jess on 02.24.18 at 1:31 pm

legacy

RBS, which was once the biggest bank in the world, had to be rescued by British taxpayers in 2008 with a £45 billion ($63 billion) bailout. The government owns 73% of the bank.

… bank is still being investigated by the US Department of Justice over claims that it sold toxic mortgages prior to the global financial crisis

=

February 22, 2018
The U.S. Economy after the Global Financial Crisis

Vice Chairman for Supervision Randal K. Quarles

At “10 Years after the Global Financial Crisis: How Has the World Economy Changed and Where Will It Go?” 26th International Financial Symposium sponsored by the Institute for International Monetary Affairs, Tokyo, Japan
https://www.federalreserve.gov/newsevents/speech/quarles20180222a.htm

The enforcement proceedings follow the Board’s actions prohibiting former Barclays FX traders Christopher Ashton and Michael Weston from employment in the banking industry, as well as the Board’s May 2015 enforcement action against Barclays for unsafe and unsound practices in its FX market practices. The action against Barclays required the firm to pay a $342 million civil money penalty and to engage in extensive remediation.

February 16, 2018
Federal Reserve Board seeking to impose a $487,500 fine on former Barclays Bank PLC employee and permanently bar him from the banking industry

For release at 3:00 p.m. EST

#8 A Yank in BC on 02.24.18 at 1:37 pm

I rather think that it’s the commoditization of an airline seat that has far more to do with the decline of service than indexed-investing. And that commoditization has come about from the customer caring about one thing above all else.. the cheapest possible airfare. In effect, people have voted for the level of service they receive.

#9 Buddy on 02.24.18 at 1:38 pm

If, by definition, an etf is meant to track the underlying index or a ‘basket of funds’, how can an actively managed etf even claim to be an etf? If any efforts of timing and selection are incorporated I don’t think actively manged etfs should be marketed and sold as such. They’re active, not passive and I would agree that this is the mutual fund industry trying to get a slice of the pie. Its all in the nomenclature.

#10 crowdedelevatorfartz on 02.24.18 at 2:00 pm

Mutual Funds.
Ugh.
When I think of the years I spent with those “High Fee/ Low performance” management cash cows…..I shudder.
As a retirement “investment”
They should be illegal.

#11 747 Slipper on 02.24.18 at 2:19 pm

The good old days of seat room, free bags, drink, sleep masks, slippers and toothbrushes on international flights. I say weigh everyone at the gate and charge them per pound. Now that’s good indexing.

#12 MF on 02.24.18 at 2:25 pm

#4 Dave on 02.24.18 at 1:15 pm

I used to work in a restaurant.

To blame a server for the rise in minimum wage, price of the food, and the taxes is more of a reflection of your lack of class than anything else.

How would you like it if there was an “other” option to get out of paying for whatever job you do?

MF

#13 portfolio managers on 02.24.18 at 2:53 pm

Doug, do active managers like yourself (moving etf’s tactically) have a similar track record as MF managers Vs a corresponding index?

globally equity balanced funds- according to morningstar the average 10 yr return is 5.34% . Ouch.

of course, they’re a whole bunch that are quality, consistently so. At least with MF’s they legally have to provide public data.

#14 NJGeezer on 02.24.18 at 2:53 pm

Hello Doug,

Nice article, you write very well.
Of course, Garth is the undisputed master of sarcasm. What is this “market” of which you speak?
The “market” ceased to be a market about ten years ago. Central bankers have destroyed true price discovery, and economic fundamentals matter not a whit. For proof, look at the SillyCon Valley Unicorns.

JMHO. Enjoy your weekend, Blog Dawgs.

#15 SoggyShorts on 02.24.18 at 2:54 pm

#197 LivinLarge on 02.24.18 at 7:49 am
What’s this blog’s term for “livin’ in a fantasy”? “I’m 25, married, have 2 kids, and make $79k (single income). No debt.” Just how many 25 y/o don’t have education based debt? Not many. Sure, possible but it’s possible that aliens built the pyramids, possible but seriously unlikely.
What’s the point of exhibiting a totally rare example?
************************************
Do mills not work while in uni? Is that not a thing anymore? Or work for a year to save up for uni?

The other possibility is no post-secondary. He’s only making $40/h, or possibly less+ some overtime.
If he started in a trade right out of highschool 7 years ago, he could definitely be up to that by now.

Note: Barista is not a trade.

#16 waiting on the westcoast on 02.24.18 at 3:07 pm

#4 Dave on 02.24.18 at 1:15 pm says “Hopefully the rise in minimum wage will bring tips back from epic heights. Went to a restaurant and the default setting on the credit card machine for tips:1) 15% 2) 18% 3) 21% 4) Other”

So true!

I went to Parlour in Vancouver… Options were : 18% 20% 25%

I was a Keg waiter in my youth so I have always tipped 20% unless service sucked but I balked at going above it…

#17 Keith in Rio on 02.24.18 at 3:27 pm

Smoking Man……..

Was just down in Houston and spent a day at the seashore in Galveston. The banks down there will happily mortgage your house, which is commonly built upon stilts, but, your insurance is going to cost $1,000 a month +/-

It’s a really nice place too, except for the floods, tidal waves, and hurricanes.

747 Slipper……..

That stuff was always there, and still is, in first class of course. Haven’t flown in the back for years now, but when I did, none of those things you mentioned existed back there either.

United did nothing wrong either. Absolutely nothing. Airline bashing is normal for the course these days. The money given to Dr. Dao came from the City of Chicago and UAL, as it was the City of Chicago’s police who dragged him off the plane after he refused to obey their commands.

If I was the CEO I would have buried him in court with lawyers. He didn’t have a legal leg to stand on and unfortunately the airline’s CEO, Munoz, when he lifted his skirt to grab his balls, found that he didn’t have any.
Same with the City of Chicago. They made a PR mountain out of a molehill that would have disappeared within 48 hours or so.

What does that have to do with overpaid mutual fund managers who cannot perform and ETF’s anyways ?

#18 tccontrarian on 02.24.18 at 3:47 pm

#17 Keith in Rio

“United did nothing wrong either. Absolutely nothing. Airline bashing is normal for the course these days. The money given to Dr. Dao came from the City of Chicago and UAL, as it was the City of Chicago’s police who dragged him off the plane after he refused to obey their commands”.
———————————————————–
Sure, but only because it wasn’t YOU that got dragged out like a sack of potatoes.
Idiotic comment!
———————————————————–
“According to the latest SPIVA US Scorecard, about 90% of US large-cap fund managers have underperformed their benchmarks over the past 15 years. So, poorly performing and expensive active managers still need to be purged from the system.” – D.R.
===========================
Let the ‘purge’ continue. I would only consider placing my money with a fund-manager if a +10-year record showed +15% return.

Otherwise, I’ll do it myself; more fun anyway!

TCC

#19 paulo on 02.24.18 at 3:47 pm

On the tips thing, lets look at it: in Ontario if you are a server in a liquor serving establishment you receive a base salary of 12.20/hr tip outs average 3.5 to 5.5% of gross sales from the average server,and are supposed to be distributed to cooks bus boys and greeters however they very rarely are in most cases. the lack of labor laws and accountability is astonishing.
Any way back to our server: lets say he or she works a 8 hour shift ,yes many work fewer hours per shift but lets call it 8 hours for this example.
the server receives $97.60 in base wages. lets assume that the server had a $2500 dollar gross sales shift,and is “tipping out” at 5.5% of gross . on $2500 its (137.50) to the house
using the average minimum tip number on a payment processing machine 15% the server likely received on average 375.00 in tips less the “tip out” of 5.5% or $137.50. so your server “nets” 237.50 in tips,plus the
$97.60 in base wage. $335 divide by the 8 hr shift=
works out to a average of 41.88/hr pretty impressive considering the cook,dishwasher etc are likely making minimum wage 14.00/hr looking at another way your average skilled tradesman/woman makes between 28.00 and 35.00/hr after completing college and a 5 year apprenticeship. something to consider the next time you are paying the bill for dinner out.

#20 Prairieboy43 on 02.24.18 at 3:53 pm

Flew Wardair back in the late 80’s. First class steak/lobster. Won trip to Honolulu as 19 year old at university dance. Draw was at midnight, we boarded plane at 8:00 am. No luggage, just went along with all inclusive trip plus $1000.00 spending money. Aloha, for two 19 year old students. “Wasn’t that a party, could have been whiskey, might have been the beer………………..”. Wardair was first class.
PB43

#21 Victor V on 02.24.18 at 4:01 pm

York region is ground zero for the real estate collapse in the GTA.

http://torontorealestatecharts.com/2018/02/06/january-2018-detached-markham/

http://torontorealestatecharts.com/2018/02/06/january-2018-detached-richmond-hill/

http://torontorealestatecharts.com/2018/02/06/january-2018-detached-vaughan/

#22 SoggyShorts on 02.24.18 at 4:07 pm

#16 waiting on the westcoast on 02.24.18 at 3:07 pm
#4 Dave on 02.24.18 at 1:15 pm says “Hopefully the rise in minimum wage will bring tips back from epic heights. Went to a restaurant and the default setting on the credit card machine for tips:1) 15% 2) 18% 3) 21% 4) Other”
So true!
I went to Parlour in Vancouver… Options were : 18% 20% 25%
I was a Keg waiter in my youth so I have always tipped 20% unless service sucked but I balked at going above it…
*****************************************
I don’t mind tipping, I hate the % system. If we go to ihop, and the waitress is running her ass off, and doing a great job, 20% is $6
Then if I take a client out to Ruths Chris, the bill comes to $400, and the waiter didn’t do any more work would get $80? That makes no sense to me.

Same goes for delivery. Does the guy who carried 3 pizzas from his car to my door deserve 50% more than the guy who carried 2?

#23 For those about to flop... on 02.24.18 at 4:12 pm

There must be a realtor holed up at some open house with no traffic that wants to help me out after getting bored of playing Candy Crush.

Help out The Flop…

M43BC

#24 Smoking Man on 02.24.18 at 4:14 pm

17 Keith in Rio on 02.24.18 at 3:27 pm
Smoking Man……..

Was just down in Houston and spent a day at the seashore in Galveston. The banks down there will happily mortgage your house, which is commonly built upon stilts, but, your insurance is going to cost $1,000 a month +/-
…….

You missed the point entirely.
Sure you can buy insurance for floods and hurricanes.
Now do you think The Big USA banks would offer 40 year mortgages to Florida Properties if they truly believed in global warming and Florida would be under 10 feet of water.

They don’t but will play along for the carbon trading business.

#25 espressobob on 02.24.18 at 4:33 pm

Active vs. passive? No contest. Building a portfolio replicating a global index is going to outperform active fund managers over the long haul. Times are a changing.

The role of a financial advisor is were the change will come. It will be less about outperformance and more about asset allocation, financial goals, time horizon, taxation, risk tolerance etc…

The days of high fees from mutual and hedge funds ‘comedy of errors’ are slowly loosing ground. Any wonder why passive etfs are becoming popular?

#26 Figmund Sreud on 02.24.18 at 4:35 pm

Poor passive ETFs. They’re just quietly going about their business outperforming active managers and all they get for their trouble is a metaphorical beating and drag down the aisle.
_____________________

Yes. ETFs work. ETF-ing is, … sort of alike collectivism, … alike insurance, … alike kibbutzim. So very Andy Pinky Party like doctrine

Still, … let’s acknowlage that a key role of the stock market is to allocate capital to the most efficient companies, … yet index funds do not do such. ETFs are simply built by buying all the stocks that qualify for inclusion in a specific benchmark – excellent ones, the good, the mediocre, the poor, the terrible ones. Not much more, …

Anyway, … I like ETFs, but I like theirs managers, too.

Best,

F.S.: Comox, BC.

#27 Smoking Man on 02.24.18 at 4:41 pm

Just saying, looking at the comments when ever T2 or Wynne is the subject matter on Facebook. Zero positive posts by people using there real names..unlike here or Twitter.

No wonder T2 asked Zuckaburg to censor Fasebook.

Short Libralism it’s done in its current format.

#28 Active vs passive on 02.24.18 at 4:47 pm

I use both . Broader indices ?passive . Sectors ?active (ex., small caps , preferred shares )

I applaud the managers that out perform long term , risk-adjusted . Respect

#29 Westcdn on 02.24.18 at 4:48 pm

I have a suggestion for the BC lotus landers in regard to property taxes.

Double or triple the residential property tax mill rate and allow individual owners to deduct the property taxes paid as a non-refundable tax credit on one home of their choice on an individual owner’s income tax return.

It is just a concept requiring administrative procedures to prepare a plan. I propose that government would issue T forms for property taxes paid by individual people only. Sorry no soup for corporations, partnerships or trusts … e.x. Maybe Albertans too …

#30 Stone on 02.24.18 at 4:53 pm

#6 Smoking Man on 02.24.18 at 1:29 pm
Made an amazing discovery last night. If your reading glasses are not quite doing it for you. Put on a second pair. Boom you can see again. Try it. I’m not kidding.

You tube videos in 3d. Amazing.
Fyi. rich people the lunatics are coming for your money. Listen the line of questioning when a lefty loons confronts a rich dude on global warming.

Moral of the story if you don’t feel like watching the clip.
If sea level is going to go up by ten feet how come the banks give out 40 year mortgage on Florida properties?

Makes ya think.

https://youtu.be/NjlC02NsIt0

——-

There’s a flaw in that thinking. You actually believe that the banks leadership think beyond their next quarter. How very naive to think just because you can’t think beyond your next meal that someone else will. No. A better way to consider this is to think about this instead – You’re only as good as your last sale. Also, I don’t care what you did for me yesterday. What have you done for me today? Nothing? Then, I’ll find someone else who will. That’s how banks run and pretty much any other corporation. It’s called maximizing efficiency and resource deployment at that point in time. When things go badly, just find someone to blame to deflect a lack of foresight.

Yes. Your video had a lefty loon but it also had a righty loon. The righty loon just structured his argument better to convince the gullible masses that he was right when he was as unconvincing as she was.

Yes. Everyone tells everyone else lies. Worst, they actually believe their own lies. All for the almighty dollar at any cost.

You think the banks have foresight? Where was the foresight in 2008-2009 and banks were folding right, left and centre throughout the world?

Makes ya think? Think harder!

#31 Zapstrap on 02.24.18 at 5:00 pm

I just hope Garth is in a better mood next week.

Then behave. – Garth

#32 NoName on 02.24.18 at 5:02 pm

#18 tccontrarian on 02.24.18 at 3:47 pm

+1

#33 For those about to flop... on 02.24.18 at 5:07 pm

Recent Sale Report/ Realtor Assistance Needed.

Here’s another one that was in my Possible Pinkies Folder that sold 55 days ago ,just in time for New Years.

This should be an easier one for the realtors to hit out of the park since they paid 3 million way back in the summer of 2015.

They are probably lucky to have gotten this place before the big run-up in spring 2016 or could have been in line with a lot of my other Westside cases staring at sizeable losses.

Started out trying to get 4.38 ,ending up at 3.49 after whittling it down by 20%

They were still trying to get the best part of ten percent after expenses.

O.k ,realtors here is a softly lobbed snowball.

Now hit it…

M43BC

Paid 3 July 2015 Ass 3.43 sold on December 31 2017

2502 W 33rd Avenue, Vancouver, BC, V6N 2E6

2017-02-22 : $4,380,000
2017-03-09 : $3,800,000
2017-05-20 : $3,490,000

https://www.zolo.ca/vancouver-real-estate/2502-w-33rd-avenue

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#34 Parksville Prankster on 02.24.18 at 5:11 pm

As the Oracle from Omaha often says, “Indexing (or ETF investing) is the best chance for the typical investor to get ahead in the long run. Performance comes, performance goes. Fees never falter.”

Much of the ‘Financial Services’ industry has become a thin plastic money trench, where pimps and thieves run free, and good men, (and women), die like dogs.

#35 Doug Rowat on 02.24.18 at 5:13 pm

#9 Buddy on 02.24.18 at 1:38 pm

If, by definition, an etf is meant to track the underlying index or a ‘basket of funds’, how can an actively managed etf even claim to be an etf?

The ETF universe is becoming incredibly complex. My search on Bloomberg yesterday revealed more than 700 Canadian-listed ETFs–roughly 3x more than stocks in the TSX. We’re going to have to get comfortable with there no longer being a clear definition of what an ETF is.

–Doug

#36 Dogman01 on 02.24.18 at 5:15 pm

#30 Lesser Ape on 02.23.18 at 5:56 pm

This is why it’s a really bad idea to have gross wealth inequalities in society, even if society overall is getting wealthier. Wealth distribution matters.
———————————————————-

Come for the article stay for the comments. The entire comment deserves a re-read.

Those with nothing to lose will try new (risky) things.
Desperate people do desperate things.

#37 AGuyInVancouver on 02.24.18 at 5:32 pm

Who is to say investment decisions are increasingly on autopilot. The internet has given the buyer of those ETFs a wealth of information that traders in the good old days couldn’t even dream of. Maybe a lot of them are using that info to guide their ETF portfolio.

#38 Loonie Doctor on 02.24.18 at 5:32 pm

Thanks Doug. That is a great explanation of the concerns around passive ETFs. It honestly puts my mind at ease. I know the evidence of past performance fairly well, but the concerns you mention have been niggling at me regardless. The issues mentioned would become a problem with a more inefficient market from whatever cause whether an external shock or from passive ETFs becoming big drivers creating bubbles. At some point the tide may turn, but that seems a ways off – especially for the highly liquid and efficient markets like in the U.S. Of course, external shocks are usually shocking. I also took a critical look at the manager vs. passive debate in a cage match format on my blog. I think of active managers more like skilled fighters with lots of cool moves and energy expenditure, but they just have a hard time beating the energy efficient marbled muscle mass of a sumo wrestler like passive ETF approach.

http://www.looniedoctor.ca/2017/11/09/active-manager-versus-passive-etf-investing-performance/

#39 MF on 02.24.18 at 5:36 pm

#22 SoggyShorts on 02.24.18 at 4:07 pm

“Same goes for delivery. Does the guy who carried 3 pizzas from his car to my door deserve 50% more than the guy who carried 2?”

-An incredibly naive comment. What about the server who is able to upsell for the restaurant, and bring the bill higher?

This is the kind of server that the restaurant needs because it brings in revenue, and the server gets tipped accordingly for their effort.

That’s what being in sales is all about actually.

If you are good, you can make money off commissions (or tips).

…Are we as a society against people making money now? Is this some Liberal socialist BS slithering its way into everyday psyche??

MF

#40 Doug Rowat on 02.24.18 at 5:37 pm

#17 Keith in Rio on 02.24.18 at 3:27 pm

United did nothing wrong either. Absolutely nothing. Airline bashing is normal for the course these days. The money given to Dr. Dao came from the City of Chicago and UAL, as it was the City of Chicago’s police who dragged him off the plane after he refused to obey their commands.

If I was the CEO I would have buried him in court with lawyers. He didn’t have a legal leg to stand on and unfortunately the airline’s CEO, Munoz, when he lifted his skirt to grab his balls, found that he didn’t have any.
Same with the City of Chicago. They made a PR mountain out of a molehill that would have disappeared within 48 hours or so.

What does that have to do with overpaid mutual fund managers who cannot perform and ETF’s anyways ?

Oscar Munoz had to face the public attacks head-on. Couldn’t have been easy. He had to be visible and had no place to hide. What’s your last name Keith in Rio?

–Doug

#41 MF on 02.24.18 at 5:46 pm

#19 paulo on 02.24.18 at 3:47 pm

“works out to a average of 41.88/hr pretty impressive considering the cook,dishwasher etc are likely making minimum wage 14.00/hr looking at another way your average skilled tradesman/woman makes between 28.00 and 35.00/hr after completing college and a 5 year apprenticeship. something to consider the next time you are paying the bill for dinner out.”

-Your comment sounds like it came from the USSR circa 1917.

Do you have a problem with people making money?

And if it is such a good deal why don’t you become a server?

-What about the lack of job security?
-What about the lack of benefits?
-What about the lack of hours?

And when I worked as a server most of my coworkers were doing it part time after working their “day jobs”. Almost all were educated either in University or through a trades program. The ones that weren’t were usually new immigrants supporting a family while they upgraded their skills.

MF

#42 Shareholder Letters - Berkshire Hathaway Inc. on 02.24.18 at 5:48 pm

Better than any comments here:

https://www.cnbc.com/2018/02/24/highlights-from-warren-buffetts-annual-letter.html

#43 Mark on 02.24.18 at 5:49 pm

“My search on Bloomberg yesterday revealed more than 700 Canadian-listed ETFs–roughly 3x more than stocks in the TSX. “

Yes, and most of them complete garbage. The number of Canadian ETFs that should even pass the very basics in due diligence basically can be counted on one hand. Two hands if you’re willing to consider sectors. 700, good grief.

Its also worth noting that Canadians’ adoption of ETFs has been very slow relative to the US figures you cite. Canada’s largest ETF, for example, has actually shrunk its overall unit issuance over the past decade.

#44 LivinLarge on 02.24.18 at 5:52 pm

Here’s a broad question and maybe too broad to give a definitive answer.

Presuming that there will be a continuing migration into ETFs by current mutuals customers, what might be the downside of the shift in the coming years to the folks already heavily into ETFs?

#45 young & foolish on 02.24.18 at 5:52 pm

Anybody still thinking we live in a “Capitalist” society needs to go back and read Adam Smith and David Ricardo, then contemplate how that matches up with our nearly 300 page labyrinth-like tax code, in addition to our protectionist style trade agreements.

Monopolies are chocking competition

Tariffs are everywhere and are chocking free markets

Might as well as by Index Funds and prey the system doesn’t collapse in on itself before you croak.

#46 Wrk.dover on 02.24.18 at 5:52 pm

15% tax on the order, and they want a tip on that portion too!

As if!

#47 Stan Brooks on 02.24.18 at 5:55 pm

El stupido now undermines the judicial system of this country.

https://www.theglobeandmail.com/news/national/trudeau-wilson-raybould-draw-lawyers-ire-over-remarks-in-wake-of-stanley-verdict/article38025701/

#48 Stan Brooks on 02.24.18 at 5:59 pm

Superman strikes again

http://www.dailymail.co.uk/news/article-5427641/Justin-Trudeau-dances-bhangra-dinner-India.html

Somehow the corrupted Canadian media is not reporting this.

#49 Kato on 02.24.18 at 6:03 pm

#18 tccontrarian on 02.24.18 at 3:47 pm
#17 Keith in Rio

“United did nothing wrong either. Absolutely nothing. Airline bashing is normal for the course these days. The money given to Dr. Dao came from the City of Chicago and UAL, as it was the City of Chicago’s police who dragged him off the plane after he refused to obey their commands”.
———————————————————–
Sure, but only because it wasn’t YOU that got dragged out like a sack of potatoes.
Idiotic comment!
____________________________

I disagree. It’s a shame the good Doctor got hurt, but the other 3 people ordered off the plane did what they were told, didn’t necessitate the police being called, and didn’t resist being removed from UAL’s plane by force (they also didn’t get a juicy settlement).

It was dumb to let everyone on board before sorting out where the employees (crew for a different flight) will sit, but the bottom line is when the flight crew says you have to leave, it’s their plane. Get your stuff and go. When the police show up and tell you to leave the plane, maybe don’t struggle with them.

#50 Eyestrain on 02.24.18 at 6:15 pm

 The investing world actually needs active management. Active management is required to punish those companies that are operating poorly. It’s needed to prevent a valuable company from perpetually remaining valuable.
——————-

Hi Ryan, not sure I follow your logic in the last sentence above. That “video clip” has been debunked – a doctor flying coach? LOL

People tend to overestimate the risks of airline travel. What are your thoughts on Healthcare ETF’s ?

https://www.cnbc.com/2018/02/22/medical-errors-third-leading-cause-of-death-in-america.html?recirc=taboolainternal

#51 espressobob on 02.24.18 at 6:16 pm

Bloomberg leaves a lot to be desired. Tabloid mentality lacks not only facts but common sense.

Grain of salt?

#52 Giver-AB on 02.24.18 at 6:33 pm

I’ve never really followed the argument against passive strategies. It seems to me that if passive investing generates inefficiencies in valuations, at some point it will make it easier for active managers to pick winners or losers. Active managers may actually be able to outperform if this happens and so money will flow back into active management. As it flows out of passive strategies, it will reduce the inefficiencies and make it harder for the active guys and so they will underperform again.

It seems to me that if the assets invested in passive investing strategies eventually get large enough to create significant inefficiencies then the play between active and passive will eventually fall into some kind of equilibrium.

One thing is for sure. As the popularity of ETFs continues, fees will continue to go down and investors will benefit.

#53 Howard on 02.24.18 at 6:40 pm

Warning : do not view on a full stomach.

Trudeau shows off his Bhangra dance moves : https://montreal.ctvnews.ca/mobile/video?clipId=1333192

#54 Blessed_Canadian_Millennial on 02.24.18 at 6:41 pm

#6 Smoking Man on 02.24.18 at 1:29 pm
Made an amazing discovery last night. If your reading glasses are not quite doing it for you. Put on a second pair. Boom you can see again. Try it. I’m not kidding.

You tube videos in 3d. Amazing.
Fyi. rich people the lunatics are coming for your money. Listen the line of questioning when a lefty loons confronts a rich dude on global warming.

Moral of the story if you don’t feel like watching the clip.
If sea level is going to go up by ten feet how come the banks give out 40 year mortgage on Florida properties?

Makes ya think.

https://youtu.be/NjlC02NsIt0

———

Thanks for posting the youtube link, Smoking Man.

Wow…

So the global warming is “real” as it’s cyclical. Sure, manmade emissions may have caused it to increase it at a higher pace. BUT: it is no-where near as catastrophic as the lefty loons want you to believe.

#55 SoggyShorts on 02.24.18 at 6:52 pm

#19 paulo on 02.24.18 at 3:47 pm
……… tip outs average 3.5 to 5.5% of gross sales from the average server……….
***********************
Yep, when I waitered I had to pay the hostess 1%, bar 2% and cooks 2% of my total sales.

It happened sometimes that you’d serve 1 table of 30+ for a few hours and the bill would be over $2,000.
The $21 in wages I made would not come close to covering my losses if I got stiffed on the tip.
Only happened to me once with a table of Germans, which I can understand since waiters over there actually make a good wage, and no one tips.

This is why now restaurants all say “a XX% gratuity will be added to tables of XX or more”

I do like the basic idea of performance based pay, but the “always tip 18%” idea is not that. I’d be happy if it was acceptable to tip between 0-30% based truly on performance, but we are trained to feel like scum for tipping less than 15% even if the waiter is terrible.

The way society views tips is not that the amount is a reflection of service at all, but instead a reflection of the customer, which is ridiculous.

#56 earlybird on 02.24.18 at 6:55 pm

Dogman01

#30 Lesser Ape on 02.23.18 at 5:56 pm

This is why it’s a really bad idea to have gross wealth inequalities in society, even if society overall is getting wealthier. Wealth distribution matters.

Agreed, that was one of the best comments I have read on here!

That explains the “why” behind peoples decision and even world events…the have-nots are pissed, broke and voting.

#57 TurnerNation on 02.24.18 at 7:09 pm

MF= myth busted. Something uniquely Kanadian about overpaying for crappy overpriced food along with indifferent service.

Wish my job had almost every customer showering me with extra money no matter what I’ve done.

Most places near me have new faces every week. Revolving door. And people say there’s no jobs.

Starve the Beast!

#58 Linda on 02.24.18 at 7:11 pm

While I feel some sympathy for the human element here (the ‘active’ managers) I can’t feel any sympathy for those who consistently underperform while collected high MER fees. Sorry folks, but the clothes are off this emperor & I can only hope that investors will succeed in demanding much lower CEO & board compensation as well. CEO’s in particular are over compensated, collecting the huge bonus of all the underlings whose efforts contributed to the success of the company or companies involved. Did the CEO provide leadership & a game plan to lead the company safely & profitably towards its goal? One would hope so, that is the job. Did they do it alone? That would be ‘no’. So why are they being paid as if they alone did all the work? Leaders of entire countries are not as highly compensated as these people, nor do they have the glamor/fan factor of a high performance athlete whose career lifespan is relatively short, which is at least some justification for the huge compensation they might receive. Too many CEO’s still receive all the bonuses & benefits even while leading the company straight towards receivership. Time to change the contract language so that no longer occurs.

#59 For those about to flop... on 02.24.18 at 7:11 pm

Here are some stats for detached sold listings y.o.y in the sort of places that matter.

This is BEFORE the homeowners got donged on the head by a big orange frypan…

M43BC

Richmond…..-79%

Vancouver….-56%

Surrey…..-64%

Burnaby….-47%

West Vancouver….-66%

Delta….-44%

Coquitlam….-62%

Langley….-50%

#60 Doug Rowat on 02.24.18 at 7:16 pm

#43 Mark on 02.24.18 at 5:49 pm

Its also worth noting that Canadians’ adoption of ETFs has been very slow relative to the US figures you cite. Canada’s largest ETF, for example, has actually shrunk its overall unit issuance over the past decade.

You may be referring to iShares. I can tell you first hand that the Canadian marketplace is definitely not a priority for this company.

–Doug

#61 MF on 02.24.18 at 7:16 pm

55 SoggyShorts

“The way society views tips is not that the amount is a reflection of service at all, but instead a reflection of the customer, which is ridiculous”

-it’s actually 100% warranted. More often than not the service is fine but the customer is just cheap or classless with some sort of primitive crab mentality.

Servers should not have to pay to serve a table of patrons because the patrons are angry at taxes, food costs, or minimum wage legislation.

MF

#62 MF on 02.24.18 at 7:21 pm

#57 TurnerNation on 02.24.18 at 7:09 pm

No there is something uniquely Canadian about paying people for their service.

Realtors get commissions (yes they deserve them), car salesman get commissions, mutual fund managers and stock brokers get commissions.

It’s called capitalism..and we used to have a healthy version of it.

To all those complaining, why not work in a restaurant and capitalize?

MF

#63 Frequent Flyer on 02.24.18 at 7:35 pm

The other thing to keep in mind when flying United is if you have to transfer leave at least 2 hours between flights. Chances are one of the flights will be delayed or cancelled and if it’s the first one you will miss the second one, or your checked bag will.

United runs things very close to the wire. I’ve seen them cancel flights just because they could get most passengers where they were going within 8 hours by forcibly moving them to other flights through other cities. I’ve also seen them cancel flights because they didn’t have a plane available for the flight. And of course if it snows in Denver nobody is going anywhere, even though snow in Denver is a pretty regular occurrence and there is normally a weather forecast.

#64 OttawaMike on 02.24.18 at 7:43 pm

Doug,
What happens when the majority of investing is in passive ETFs and investors rushing towards the exits during a correction whipsaw the entire market?

Could this have been part of the reason for the recent 1000 point Dow drop?

#65 Nonplused on 02.24.18 at 7:47 pm

#19 paulo

But if her outfit is right and she is friendly to old guys like me $44/hour is a lot cheaper than what I usually pay.

#66 NoName on 02.24.18 at 7:49 pm

#49 Kato on 02.24.18 at 6:03 pm
#18 tccontrarian on 02.24.18 at 3:47 pm
#17 Keith in Rio
“United did nothing wrong either. Absolutely nothing. Airline bashing is normal for the course these days. The money given to Dr. Dao came from the City of Chicago and UAL, as it was the City of Chicago’s police who dragged him off the plane after he refused to obey their commands”.
———————————————————–
Sure, but only because it wasn’t YOU that got dragged out like a sack of potatoes.
Idiotic comment!
____________________________
I disagree. It’s a shame the good Doctor got hurt, but the other 3 people ordered off the plane did what they were told, didn’t necessitate the police being called, and didn’t resist being removed from UAL’s plane by force (they also didn’t get a juicy settlement).
It was dumb to let everyone on board before sorting out where the employees (crew for a different flight) will sit, but the bottom line is when the flight crew says you have to leave, it’s their plane. Get your stuff and go. When the police show up and tell you to leave the plane, maybe don’t struggle with them.

Doc pay for the ticket for that flight. Crew for a different flight didn’t pay for their ticket.

#67 acdel on 02.24.18 at 7:54 pm

Very interesting article!

This may be a stupid question but if so many mutual fund companies are now leaning towards active management as opposed to passive on ETF’s; meaning (I think) increasing the fee’s to the customer, like mutuals, at what point does it not make it worthwhile to invest in ETF’s as so many have lost a great sum due to high fees on mutual funds?

#68 SoggyShorts on 02.24.18 at 8:03 pm

#61 MF on 02.24.18 at 7:16 pm

I don’t think you understood what I was saying.

If the service is great, and you tip 25%, people think you are generous.
If the service is mediocre and you tip 10%, people think you are cheap.

Shouldn’t people think that the service was great or mediocre, and that you simply tipped appropriately?

Having worked in the industry I understand that tipping is massively flawed. I’ve given fantastic service and gotten stiffed because the customer didn’t like the food, the price, or any number of things that were out of my control.
I’ve even gotten a fat tip because a customer wants to impress someone or because they found the food delicious(although far less frequently).

#69 Pete on 02.24.18 at 8:13 pm

Garth your investment style works but why does buffet suggest this?
https://www.reuters.com/article/us-berkshire-buffett-investing/buffett-says-terrible-mistake-for-long-term-investors-to-be-in-bonds-idUSKCN1G80U7

#70 BillyBob on 02.24.18 at 8:23 pm

Interesting choice of an example to use in today’s post. A bit of context is in order.

United was completely within their rights to remove him from the flight. People need to read the back of their tickets sometime.

Of course they are not entitled to physically abuse him. The officers completely mishandled the situation. But again, Dr. Dao was legally compelled to exit the aircraft. He did not.

He was no pillar of the community.

“The passenger hauled off a United flight is a lung doctor with a taste for gambling, a history of angry outbursts — and a conviction for trading narcotics prescriptions and cash for gay sex in motels.

Dao’s own medical license was suspended in 2003 following his arrest on charges including unlawful prescribing and trafficking in a controlled substance.

He was accused of providing prescriptions for Vicodin and other narcotics to a former patient he later hired as his office manager, who was identified in news reports at the time as Brian Case.

The men repeatedly hooked up in motels, with Dao paying Case around $200 each time and also sharing in the drugs, according to a 130-page file compiled by the Kentucky Board of Medical Licensure.

On the day he was busted, Dao was secretly videotaped with Case in a Red Carpet Inn in Jefferson County, Ky., “with his shirt off and his pants undone,” the records say.”

https://nypost.com/2017/04/11/doctor-dragged-off-flight-convicted-of-trading-drugs-for-sex/

Lest this be taken as mud-slinging: please note the word “convicted”. As in, trial, due process, and so on.

I realize this is the age of conviction-by-YouTube and the destruction of reputation by anonymous accusation. But blaming United for attempting to exercise a legal right is simply not the whole picture. Absolutely, blame lies on the way the officers handled it but portraying Dr. Dao as an innocent victim is a bit much.

Apropos of nothing, but today’s pic looks like something I’d expect to see associated with American nationalism. I don’t think anyone in the world cares enough about Canada to be offended by the Canadian flag. Someone plastering that on their car is well, quaint. In a wince-y kind of way.

#71 Smoking Man on 02.24.18 at 8:32 pm

#62 MF on 02.24.18 at 7:21 pm
#57 TurnerNation on 02.24.18 at 7:09 pm

No there is something uniquely Canadian about paying people for their service.

Realtors get commissions (yes they deserve them), car salesman get commissions, mutual fund managers and stock brokers get commissions.

It’s called capitalism..and we used to have a healthy version of it.

To all those complaining, why not work in a restaurant and capitalize?

MF
……

You’re a reasonably smart millenial. Yet you don’t see the big pic. Every one is trained to work. No one is trained to own.

Difference between going any where in the world you want when you want vs being trapped like caged animal.

Working sucks ownership rules. But it comes with risk.
Safe spaces are cement shoes.

Only way to make it up the mountain. Toxic Masculinity as the engine. Girly boys flip burgers.

#72 For those about to flop... on 02.24.18 at 8:39 pm

Hey Linda,you might enjoy this howmuch article…

M43BC

“How Much Money the Highest Paid CEOs in America Make.

The stock market continues to set record highs, and the Republican tax cut is about to hit workers’ paychecks in February. The new tax law also impacts skyrocketing executive compensation, which made us wonder how a CEO compensation correlates with the company’s financial performance. We created a new graph to find out.”

https://howmuch.net/articles/highest-paid-ceo-2017

#73 Smoking Man on 02.24.18 at 8:43 pm

Been here almost 3 months trying to sell my book to Hollywood. Met over 300 producers. They love it but won’t touch it in this climate of political correctness.

I keep telling them. It’s being rejected huge. Trump is in the God damn white house. Deaf ears. Cowards living in glass safe space housing.

Looks like I need to liquidate my fx account. I’ll do it myself.

Now hiring looking for a Director, a camera man. Costume designer and some homeless actors they know real and how to feel.

Interviews start Monday.

Not bull shitting. I’m making my book a movie come hell or high water. It’s my destiny.

#74 Ray on 02.24.18 at 8:58 pm

I used to cringe when Jean Chretien left the country. I would ask myself “What mind-numbing phrase is he going to say?” Remember the “The proof is the proof…” logic? I felt like the Aflac Duck, saying “WTF “to myself. But deep down, I understood PM Chretien was a master politician, and it was on his watch the Canadian debt was reduced from third world country standards. In my mind, T2 has no political redeeming attributes. To me, it is pure “WTF”, when he parades around thinking being cute will win him some points. Maybe he knows the only audience that counts are the millennials at home, and it is them he is trying to entertain. Who knows?

#75 young & foolish on 02.24.18 at 9:00 pm

“CEO’s in particular are over compensated … ”

No kidding. The system is gamed, and the Boards of Directors are all wink wink.

As for the dragged doctor, his refusal to leave, and hold up the flight of so many others, is indicative of today’s “my rights come first” attitude. In another country, he would not have dared to refuse to leave for fear of being savagely beaten and jailed. Enjoy your rights, while you can still claim them.

#76 Ronaldo on 02.24.18 at 9:07 pm

#43 Mark

”Yes, and most of them complete garbage. The number of Canadian ETFs that should even pass the very basics in due diligence basically can be counted on one hand. Two hands if you’re willing to consider sectors. 700, good grief.”
—————————————————————
Good grief is right. So many it makes your head spin and you’re right, many are garbage and if a DIYer is not careful, 1 bad etf can be as bad as 1 bad stock pick if you’re into buying individual stocks in thrashing a portfolio return. This is where it’s important to have a qualified individual managing your portfolio if you are doing it on your own.

#77 UH-OH on 02.24.18 at 9:18 pm

An individual can hold passive etf’s and still be an active investor, in a way.

For example, rebalancing your holdings between passive stock and passive bond etf’s or between different country etf’s based on economic fundamentals is a still a form of active management by the individual investor.

Or you can buy a passive etf on the dip (correction) which is also a form of active management (timing the market).

I have faith that a passive etf allocates capital better than most active fund managers. So to me passive etf’s are win-win. Lower fees and better performance.

#78 Tbone on 02.24.18 at 9:23 pm

I work with a guy fairly new to canada, he can’t get his head around why he should tip a cab driver . They didn’t do anything special , just drove him from point A to B . I didn’t have a good answer other than they don’t get paid enough so we subsidize their wage.

He counters with , if we don’t sell anything we don’t get paid . He has a point , Nobody throws us a bone if we have an off month.

I told him I tip because it’s customary and we agreed to disagree.
They aren’t big tippers in Europe apparantly.

#79 OttawaMike on 02.24.18 at 9:49 pm

73 Smoking Man on 02.24.18 at 8:43 pm

Just like Johnny Wisseau did for his screenplay The Room.
They even made a movie on the making of The Room called The Disaster Artist.
Both great movies. Look them up.

#80 Bottoms_Up on 02.24.18 at 10:16 pm

Good post.

In the following comment, does this refer to initial public offering? My understanding is firms only get capital through an IPO, or does the comment refer to ability to borrow based on market cap? Thanks

“Security pricing must be a gauge of a firm’s underlying prospects. If it isn’t, then asset bubbles will form, particularly amongst larger companies, and smaller firms that are deserving of capital, and likely need it more, will be denied.”

#81 Millenial on 02.24.18 at 10:18 pm

Passive index etf investing is worse than communism.

#82 Keith in Rio on 02.24.18 at 10:18 pm

Doug Rowat……….

Here we are months later, on this site, and many, many others, still talking trash about an airline because of one event, and, it could have been any airline. The majority opinion seems to think UAL is still the bad guy here.

Screw public opinion.

You’re the CEO of an airline that did nothing wrong (mismanaging pax loads is a different conversation) and they’re going to hate you anyways regardless of what you do or say months later, because airlines are never correct and can never do any good. Period. As evidenced here and on other websites.

The public would have had the same opinion of United and other airlines today if Munoz did nothing, but fight back against the guy in the court of public opinion, and in front of a judge. Kissing the guys backside and paying him off accomplished the same thing as giving $10.5 million to Omar Khadr.

A big fail in the c-suite IMHO. But hey, what was the guy before he worked at UAL, the CEO on some railway and then AT+T ?

What do you want my last name for ? E-mail me privately if it really matters.

#83 conan on 02.24.18 at 10:20 pm

Final showdown between mutual funds and ETFs?
Mr. Market may not like passive money if it gets too big.
Means more Grand Canyon days for the markets.

https://www.youtube.com/watch?v=KkM71JPHfjk

#84 Bottoms_Up on 02.24.18 at 10:33 pm

#4 Dave on 02.24.18 at 1:15 pm
——————–
Average families cannot afford to eat out. I suggest if you can’t afford to leave a decent tip then stop eating out.

#85 conan on 02.24.18 at 11:04 pm

Not bull shitting. I’m making my book a movie come hell or high water. It’s my destiny. – Smoking man

what is your budget?

#86 Bby renter on 02.25.18 at 12:50 am

For those about to flop…

2630 Tempe Knoll sold for $1,950,000 on Feb 6th 2018 after 76 days on the market.

2505 33rd Ave W sold for $3,300,000 on Dec 31st 2017 after 226 days on market.

#87 Smoking Man on 02.25.18 at 1:33 am

Too SCM

https://youtu.be/EYyarcp5LtU

I still love ya.

#88 paulo on 02.25.18 at 1:36 am

#41MF:
As a previous restaurant owner/operator my comment was intended to address the public mindset of tipping regardless of quality of service and other issues concerning the distribution of the tip outs that i hear are prevalent.
tips should be based on quality of service,not a given expectation as has become the case in our society.
as to benefits,job security and guaranteed hours good luck on any of the above in our increasingly “gig” based
economy.
personally if i receive quality service i will tip with the best of them but increasingly find a astonishing lack of service at many establishments and feel that tips are or should be earned not a given expectation- poor service =poor tip

#89 Lel Mastman on 02.25.18 at 1:42 am

I’m letting go of my etf, namely VTI. I can no longer hold a basket of stock with good conscience.

Gun companies that run the NRA will no longer get my measly bucks. Bye bye “American Outdoor Brands” and Sturm Rugar. I encourage you all to do the same. Being passive shouldn’t be synonymous with not caring.

#90 Frequent Flyer on 02.25.18 at 1:43 am

#66 NoName

“Doc pay for the ticket for that flight. Crew for a different flight didn’t pay for their ticket.”

Um, holy heck. Do you understand anything? The crew was required to be moved to a certain location of a whole other plane or perhaps something like 150+ people weren’t going anywhere. Was the Doc going to fly that plane??? I have all kinds of beefs with United Airlines and indeed any airline I have ever flown on except perhaps WestJet but I can tell you with certainty that all airlines move their employees around as necessary and the employees don’t pay for those flights. The case here was they overbooked. As they often do. There was no case here that AA could have displaced the crew, because a whole another airplane would have been grounded because it didn’t have a flight crew. Are you going to fly it? I certainly hope not. So it was 4 crew members that had to man another airplane against 150+ that would ride that airplane. I certainly don’t agree with AA over-booking but let’s be reasonable.

#91 paulo on 02.25.18 at 1:50 am

#65 nonplused:

ha ha you mean old dogs like us: get your mind out of the gutter.

#92 Stan Brooks on 02.25.18 at 2:03 am

Passive ETFs are decent tool, encompassing key sectors/countries/regions. Also have low fees.

Build a strategy and pick passive ETFs to implement it.
Then re-balance between ETFs periodically, reinvest dividends.

You will outperform most hedge funds.

Mutual funds are products of the big investment firms and banks and are made to make money for them, not for you.
You are the sucker they sell it to.

Stock markets are destined to grow in the next decade or two.

Avoid leveraged ETFs.
Best ETFs seem to attract more investors, including institutional.

——————————-

#74 Ray on 02.24.18 at 8:58 pm

Agree on Jean Chretien compared to T2.
Titan politician, compared to a complete and utter embarrassment.

I never thought I would be so ashamed by a PM, the guy thinks this a circus, not a country.

The worse think is he has not intend or capabilities to run.

12 year kids are generally more mature than this guy.

#93 Stan Brooks on 02.25.18 at 2:04 am

worse thing,
had to turn off the spellchecker.

#94 Stan Brooks on 02.25.18 at 2:05 am

The worse thing is he has not intend or capabilities to learn.

#95 BC_Doc on 02.25.18 at 2:17 am

The typical actively managed mutual fund should be dragged out behind the barn and shot.

It looks like Vanguard is (finally) bringing mutual funds to Canada, all actively managed.

https://www.theglobeandmail.com/globe-investor/will-these-new-products-finally-get-the-mutual-fund-industry-to-lower-fees/article38069974/

700+ ETFs to choose from— how does one narrow down the field? In Vanguard I trust— here’s where I’d start.

#96 Souvereigninternational on 02.25.18 at 7:16 am

It seems to me that possibly active managers are not as active and mostly emulate passive or slightly modified passive investment strategies under the principles of self preservation.

#97 Headhunter on 02.25.18 at 7:21 am

#41 MF
#88 Paulo
tips should be based on quality of service,not a given expectation as has become the case in our society.

BRAVO Paulo!
Complicated but simple topic. Someone said if you cant afford to tip stay home. That just [email protected]#% batshit crazy talk. Its for service its not a given. Service and food is bad I cut my tip way down and offer to explain to the server AND manager. #Wildwing.. I will never darken their doorstep again!

What pisses me off the most is when I have to ask the server for my change. They assume I’m givin them all the money.

Gave a lovely gal Friday night a $10 to pay for my $7 bottle of BUD..(yes $7 for a bottle of beer) she ever came back with the change.. entitlement #MF thats the kicker here in Canada..popular spot but they are hurting.

#98 Evangeline on 02.25.18 at 7:33 am

Smoking Man

Have you tried selling your idea to Steve Mnuchin, Trump’s treasury guy, who is also a film producer?

His filmography on Wikipedia is pretty impressive.

#99 Steven Rowlandson on 02.25.18 at 8:07 am

#19—-” your average skilled tradesman/woman makes between 28.00 and 35.00/hr after completing college and a 5 year apprenticeship. something to consider the next time you are paying the bill for dinner out.”

What planet are you living on? Tradesmen get paid equal to or slightly better than minimum wage if they are wood workers, framers, stair builders. I speak from experience gained from working as a stair builder from 1982 to this year. I know what I am doing and I am not some mickey mouse Canadian tire carpenter or hobbyist. If someone inside or out side of this country told me that he wanted to be a tradesmen in Canada I would recommend that he get his head examined because the chances of him becoming a homeless virgin with no decedents is excellent.

#100 Mega Cat on 02.25.18 at 8:38 am

#42 Shareholder Letters – Berkshire Hathaway Inc. on 02.24.18 at 5:48 pm

Better than any comments here:

https://www.cnbc.com/2018/02/24/highlights-from-warren-buffetts-annual-letter.html
***********
tltr; millennial edition:

Super-rich grampa wrote that corporate debt is often bad, but that buying stocks with borrowed money is always bad. He made a good bet proving his theory that hedge fund managers make bad bets. He made a bad bet on bonds, thus extending his theory to include plain old money managers. He is the only guy insurance guys rely on when bad $hit happens.

Spoiler alert:
He claims that stockmarkets can go down (wtf?), but predicting when is like knowing if an Uber driver is holding. He also advised that CEO’s are stock teasers, teenage sex is normal, and to sleep when you are old. Seems like a guy worth listening to once a year.

#101 crowdedelevatorfartz on 02.25.18 at 8:44 am

@#90 FrequentFlyer
“except perhaps WestJet”
++++++
I will never fly Westjet after one of their pilots lost his shit at me.

Was flying a “redeye” from Van to Toronto.
Flight left Van at 11:30pm.
Waited til the plane reached altitude about 30 mins later( over Kelowna?) and got up to go to the washroom.
Plane is dark, everyone is sleeping, perfect time for a walkabout to the loo.
I’m 3feet from the washroom door at the front of the plane(Westjet…no 1st class )
The cockpit door opens? WTF?
Apparently Mr Pilot has the same idea.
The pilot sees me standing there and SCREAMS ( and I mean screams), “GET BACK! GET BACK! GET BACK TO YOUR SEAT”
“I’m going to the bathroom”
“GET BACK! I SAID GET BACK!
Now he’s freaking out( inspires a great deal of confidence in his ability to handle a crisis moment)
All this while standing ….with the cockpit door STILL OPEN.
“Well, its good to know a paying cutomer has to wait for the employees…..”
Back I went to my seat.
The useless prick forgot to check the peephole in the cockpit door and opened it without looking first.
Asshat with a capital “A”
A couple of people woke up at the commotion. The waitresses(stewardesses) came running. The 5ft 5inch pilot was a complete dipshit and if he was in a bar I would have slapped him silly
The pilot finished his “bidness” about 5 minutes later and when he went to re-enter the cockpit.
He called over the PA system, for the two stewardesses( all 98lbs of them) to ,”Security block the cockpit door”.
So back up they come to stand like football defensemen while “pissy pilot” opened the door and scurried back into his workplace.
I told the stewardess when she walked past, “Tell the pilot I’m making a complaint in writing to Westjet when we land”

When the plane landed he stayed in the cockpit.
I yelled into him, “Nice flight except for the childish behavior”

Wrote a letter to Westjet.
Nothing. No responce.
Never fly WestJerk again.

#102 Chocking Man on 02.25.18 at 9:15 am

#45 young & foolish on 02.24.18 at 5:52 pm

Anybody still thinking we live in a “Capitalist” society needs to go back and read Adam Smith and David Ricardo, then contemplate how that matches up with our nearly 300 page labyrinth-like tax code, in addition to our protectionist style trade agreements.

Monopolies are chocking competition

Tariffs are everywhere and are chocking free markets

***********
At least Chretien only grabbed them by the throat.

#103 Casting Coucher on 02.25.18 at 9:25 am

#73 Smoking Man on 02.24.18 at 8:43 pm

Been here almost 3 months trying to sell my book to Hollywood. Met over 300 producers. They love it but won’t touch it in this climate of political correctness.

xoxoxoxoxoxo

I can put you in touch with Harvey. He might bite.

#104 Canadian Car & Driver on 02.25.18 at 9:39 am

My 2016 Honda has hold-down clips on the driver’s side rubber slush mat to prevent unintended acceleration. The way it works is the holes for the clips lets the salt water flow to the underlying carpet, where it is hermetically sealed to prevent evaporation until the floorpan rusts thru. So when the drive-by-wire computer malfunctions, to brake I simply stomp my feet down thru to the pavement.

Just a heads-up for any Canadians considering an autonomous electric vehicle – make sure it also has clips on the passenger’s side. And don’t forget the wood stove.

Yabba dabba do!

#105 Doug Rowat on 02.25.18 at 9:47 am

#82 Keith in Rio on 02.24.18 at 10:18 pm

Doug Rowat……….

What do you want my last name for ? E-mail me privately if it really matters.

You want to reveal your identity to me personally? Who cares. It’s easy to talk about all the brave things you’d do as CEO when you’re anonymous and facing zero public pressure. That was my point.

–Doug

#106 Mad alien Smoker Dreams on 02.25.18 at 9:51 am

Budget A$350,000–400,000
Box office US$100 million

Mad max – the greatest movie profit machine there ever was
You can’t lose smoking man

#107 Doug Rowat on 02.25.18 at 9:52 am

#52 Giver-AB on 02.24.18 at 6:33 pm

One thing is for sure. As the popularity of ETFs continues, fees will continue to go down and investors will benefit.

Correct. The average actively managed ETF in Canada charges an MER of 0.73%. Not exactly a bargain, but much better than your average mutual fund.

–Doug

#108 The other Doug in London on 02.25.18 at 10:00 am

Wow, I really like that picture, it sums up how I feel about this country we live in.

As for airlines, for trips on this continent there’s Greyhound, Via Rail, or Amtrak.

#109 NoName on 02.25.18 at 10:05 am


#90 Frequent Flyer on 02.25.18 at 1:43 am

The case here was they overbooked. As they often do. There was no case here that AA could have displaced the crew, because a whole another airplane would have been grounded because it didn’t have a flight crew.

As reality continues to make my life exponentially harder every year, every so often I stumble upon person like you who reasons as he/she just got of the frequent flyer program. I understand greater good angle you are coming from, but you are wrong and I’ll tell you why.

Most people don’t care about poverty, deadly diseases, or injustice until it affects them directly or someone they know, so please tell us how many time your flight was canceled or savirly delayed so we can understand psychological trickery that airline imposed upon your person.

#110 crowdedelevatorfartz on 02.25.18 at 10:26 am

@#90 Frequent Flyer

Hey!
I heard Westjet is hiring.
Every cockpit will get a computor, a pilot and a dog.

The computor will fly the plane.
The pilot will feed the dog.
The dog will bite the pilot if he touches the computor.

#111 akashic record on 02.25.18 at 10:51 am

#82 Keith in Rio on 02.24.18 at 10:18 pm

Kissing the guys backside and paying him off accomplished the same thing as giving $10.5 million to Omar Khadr.

===

The lawsuit should have run its course.

If Khadr won, that would have opened up the political option to write new laws governing situations like this, taking out the decision from the hands of individual politicians.

#112 MF on 02.25.18 at 11:07 am

#98 Headhunter on 02.25.18 at 7:21 am

“BRAVO Paulo!
Complicated but simple topic. Someone said if you cant afford to tip stay home. That just [email protected]#% batshit crazy talk.”

-Like the person said above, if you cannot afford to tip than don’t eat out.

You can cry and complain about a culture that allows people to make money and survive with worthless anecdotes, but at the end of the day you still sound like you are cheap, envious, and classless.

Maybe that’s why you get bad service?

MF

#113 TurnerNation on 02.25.18 at 11:13 am

Re. tipping okay here’s two examples from this week.

One round of drinks at a fancy downtown hotel lobby bar, all in with tax was $40 I tipped $4.
A meal at a College St. small place, the kitchen was backed up but everyone was nice there. All in $45, I tipped $5.

I say let the corporate expense account crew lavish them. I’m just one guy, not my problem how tips get divided up in the back room. Soon to do my CRA taxes…I gotta pay for T2’s trip you know.

#114 MF on 02.25.18 at 11:13 am

#88 paulo on 02.25.18 at 1:36 am

“tips should be based on quality of service,not a given expectation as has become the case in our society.
as to benefits,job security and guaranteed hours good luck on any of the above in our increasingly “gig” based
economy”

-If you actually worked in an establishment than you saw the damage lack of tipping does to the servers who depend on the tips to survive.

Didn’t you?

The “expectation” is called culture and, again, it allows for people to make a livable wage.

Servers should not have to pay for people’s lack of knowledge or disregard of basic Canadian culture. Period.

If you received bad service than by all means, don’t tip. Just don’t attack the honest hard working because of your cheapness.

MF

#115 akashic record on 02.25.18 at 11:15 am

One of the major political selling points for globalism was to open up trade with China, because that will lead to democratic society there.

It looks like just the opposite has been happening: China’s Communist Party has officially cleared the way for President Xi Jinping to rule as emperor for life by announcing on Sunday that it intends to abolish a two-term constitutional limit on the presidency.

The NYT reports, citing local media, the Central Committee approved the amendments to the Constitution at a meeting last month. But the vague official announcement released at that time did not hint at the momentous expansion of Mr. Xi’s presidential power, which was kept secret until Sunday.

#116 joblo on 02.25.18 at 11:34 am

https://www.theglobeandmail.com/opinion/in-justin-trudeaus-canada-we-still-cant-get-anything-big-done/article38086398/

Good points and what a bunch of LOSERS Lieberals have been.

Disagree that T2 can turn things around, such a failure.

#117 Keith in Rio on 02.25.18 at 11:39 am

Doug……..

Our identities here are irrelevant, as this is a forum of ideas, unless you’re losing the argument that is…….then you use identity politics and bullying as a defence, because you lack the humility to realize you were wrong.

If you can’t use facts, logic, and reason, that’s fine. But at least be an adult about it.

#118 AB Boxster on 02.25.18 at 11:57 am

RE: ETFs

While I think ETFs are still the way to go as opposed to mutual funds, it is still extremely frustrating to try to understand which ETF to choose.

For Example:

Ishares (US) has an ETF called EFAV.
It is an 8 billion dollar ETF denominated in USD.
In Morningstar it is categorized as Foreign Large Blend.
Pays 2.3% and has done very well over the past 4 years.

Ishares Canada has 2 Canadian ETF’s, both based upon the underlying US ETF (above mentioned EFAV)

The first ETF is XMI:
iShares Edge MSCI Min Vol EAFE Index ETF

The Second ETF is XML:
iShares Edge MSCI Min Vol EAFE Index ETF (CAD-Hedged)

The only difference that I can see in the two ETF’s, is that one is CDN $ hedged while the other is not.

It looks like both are essentially the same Canadian Ishares product, with the underlying US ishares product (EFAV) making up 100 % of each ETF.
Both pay about the same yield at 2%.

The problem is though that the YTD returns are vastly different.

The underlying USD fund, EFAV is up 1.52% YTD.

XMI , the non hedged fund, is up 2.24% YTD.

XML, the CDN $ hedged fund, is down 1.8% YTD.

So the difference between these two Canadian ETFs, that have the some underlying US fund (EFAV), is essentially 4% YTD.

Seriously?
There is a 4% difference between the 2 identical funds just because of CDN dollar hedging?

So then is it the case that one should never buy CDN dollar hedged ETF’s?

Well unless of course one is able to accurately predict the currently markets, which is a crapshoot in of itself.

I thought that CDN hedging was designed to eliminate the risk of currency fluctuations.

The ratio on Jan 1 was USD/CDN = 1.258 CDN
The ratio on Feb 24 was USD/CDN = 1.263 CDN
Not much currency fluctuation happened between Jan 1 and Feb 24.

Yet, if I bought XML as my foreign currency portion of my portfolio this portion would be down almost 2% YTD.

And, if I bought XMI, the same fund without CDN $ hedging, this portion of my portfolio would be up by 2.25% YTD.

As I said, extremely frustrating.

#119 KO on 02.25.18 at 12:04 pm

Doug……..

Our identities here are irrelevant, as this is a forum of ideas, unless you’re losing the argument that is…….then you use identity politics and bullying as a defence, because you lack the humility to realize you were wrong.

If you can’t use facts, logic, and reason, that’s fine. But at least be an adult about it.

………….

knock-out -blow

#120 akashic record on 02.25.18 at 12:14 pm

#115 MF

The “expectation” is called culture and, again, it allows for people to make a livable wage.

Servers should not have to pay for people’s lack of knowledge or disregard of basic Canadian culture. Period.

Servers have no political, economic leverage to command higher wage on the labor market with no shortage of applicants.

They can only use their personal (sex)appeal to influence the tip decision of the customers.

#121 huh? on 02.25.18 at 12:14 pm

You want to reveal your identity to me personally? Who cares. It’s easy to talk about all the brave things you’d do as CEO when you’re anonymous and facing zero public pressure. That was my point.

–Doug

…………

he was sharing his opinion. You didn’t like it and being the thin-skinned guy you are…..the identity-card came out. Does it make you feel strong?

this isn’t the first time you’ve brought the anonymity card up, Doug. Because your last name is visible, you’re a more brave poster? good grief.

#122 For those about to flop... on 02.25.18 at 12:17 pm

#86 Bby renter on 02.25.18 at 12:50 a
For those about to flop…

2630 Tempe Knoll sold for $1,950,000 on Feb 6th 2018 after 76 days on the market.

2505 33rd Ave W sold for $3,300,000 on Dec 31st 2017 after 226 days on market.

/////////////////////////
Hey BR,yeah pretty much as expected,no fireworks as they were in my Possible Pinkies Folder but still good info.

The guys on 33rd probably made around 100k,maybe less if you factor in opportunities lost after paying 3 million way back in July 2015.

Probably a bit of a let down after originally asking 4.38

The main thing is they are safe as not much is happening north of 2 million and people seem loathed to concede any ground on what they could have gotten in early 2016.

The other one on Tempe Knoll was a decent result for them and as I just alluded to,were probably lucky to be selling below the 2 million dollar mark,although I see plenty of losses below this number.

Someone the other day named ‘ Pay your taxes’ wrote me the other day and described living on that street way back when and the prices paid and it helps to paint a more complete picture.

They paid 1.63 and got 1.95 after originally chasing 2.29,still a decent result for them.

If you have it in you I would like to do one more to show the madness in the condo market.

102-5131 Brighouse Way, Richmond paid 3.02 asking 3.58 condo

Sold on February 11th 2018

https://www.zolo.ca/richmond-real-estate/5131-brighouse-way/102

I appreciate the help and if you have the time and desire you could also complete my January Sales Report ,I put up the other day.

If you are too busy,I thank you got your time on behalf of the people that enjoy reading my posts.

Enjoy your Sunday,and that goes to everyone else on this blog as well…

M43BC

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#123 Headhunter on 02.25.18 at 12:30 pm

#113 MF

You can cry and complain about a culture that allows people to make money and survive with worthless anecdotes, but at the end of the day you still sound like you are cheap, envious, and classless.

“name calling” triple wow! Totally “on cue” That all ya got? why so bitter? hmmmm since we are still in the schoolyard #MF..

I am rubber and you are glue, whatever you say bounces of me and sticks to you..

#124 NoName on 02.25.18 at 12:32 pm

#116 akashic record on 02.25.18 at 11:15 am
One of the major political selling points for globalism was to open up trade with China, because that will lead to democratic society there.
It looks like just the opposite has been happening: China’s Communist Party has officially cleared the way for President Xi Jinping to rule as emperor for life by announcing on Sunday that it intends to abolish a two-term constitutional limit on the presidency.
The NYT reports, citing local media, the Central Committee approved the amendments to the Constitution at a meeting last month. But the vague official announcement released at that time did not hint at the momentous expansion of Mr. Xi’s presidential power, which was kept secret until Sunday.

that is exactly what is about not to happen.

https://www.bloomberg.com/news/articles/2018-02-25/china-seeks-to-repeal-president-s-term-limit-opening-way-for-xi

#125 Hvacr on 02.25.18 at 12:34 pm

19—-” your average skilled tradesman/woman makes between 28.00 and 35.00/hr after completing college and a 5 year apprenticeship. something to consider the next time you are paying the bill for dinner out.”

What planet are you living on? Tradesmen get paid equal to or slightly better than minimum wage if they are wood workers, framers, stair builders. I speak from experience gained from working as a stair builder from 1982 to this year. I know what I am doing and I am not some mickey mouse Canadian tire carpenter or hobbyist. If someone inside or out side of this country told me that he wanted to be a tradesmen in Canada I would recommend that he get his head examined because the chances of him becoming a homeless virgin with no decedents is excellent.
The average Red Seal tradesman in Canada depending on region and work load can make between $50-$100,000 a year. A skilled trade is an excellent career choice. You get paid to learn on the job and paid to go to school. If you have spent the last 36 years working in a trade for slightly above minimum wage maybe you have you been living on Planet ” Sell yourself short ” for a little too long

#126 NoName on 02.25.18 at 12:34 pm

above comment was about part that says, will lead to democratic society there.

#127 mike from mtl on 02.25.18 at 1:00 pm

#119 AB Boxster on 02.25.18 at 11:57 am

Seriously?
There is a 4% difference between the 2 identical funds just because of CDN dollar hedging?

So then is it the case that one should never buy CDN dollar hedged ETF’s?
/////////////////////////////////////////////////////////////////////////

You’ve got that right. Unless you have insider info about currency directions (yeah right) and perfectly move back and forth – DONT EVER HEDGE ON POLOZ PESO.

That or invest like an americain, put it all in USD$ S&P and add something like 20% in USD$ EAFE – forget maple.

#128 MF on 02.25.18 at 1:04 pm

#124 Headhunter on 02.25.18 at 12:30 pm

Gotta admit I chuckled at your post.

Having worked in a restaurant for years to support myself in the past I just gotta call out BS when I see it.

Tipping culture is a beautiful thing. It allows for people in between life events, who might be without formal training (for whatever reason), and new immigrants to make a life by using their interpersonal/selling skills.

I see that as a positive.

Moreover, when people argue that someone else should be making less, especially everyday people like servers, it wreaks of socialism and has no place in Canada.

MF

#129 Obedience School on 02.25.18 at 1:05 pm

#120 KO on 02.25.18 at 12:04 pm

Doug……..

Our identities here are irrelevant, as this is a forum of ideas, unless you’re losing the argument that is…….then you use identity politics and bullying as a defence, because you lack the humility to realize you were wrong.

If you can’t use facts, logic, and reason, that’s fine. But at least be an adult about it.

………….

knock-out -blow
_—-_————–

I think Doug was correctly pointing out that beating the crap out of a paying customer is bad for business, and no CEO can defend this, regardless of who was responsible or who was attacked. If you have a different opinion, then VIA can reserve your place on the next cattle car. They just need your full name to confirm.

#130 MF on 02.25.18 at 1:10 pm

#121 akashic record on 02.25.18 at 12:14 pm

“Servers have no political, economic leverage to command higher wage on the labor market with no shortage of applicants.

They can only use their personal (sex)appeal to influence the tip decision of the customers.”

-Is there anything wrong with that? Do strippers make “too much money”?

People become accountants because they are good at math.
People become carpenters because they are good with their hands.

It’s called the free market.

MF

#131 crossbordershopper on 02.25.18 at 1:22 pm

i find mutual fund salespeople and brokers and insurance salespeople overpaid, most people can do it themselves without those overpaid people.
i hate getting phone calls from these guys, do it yourself and never call them, and save yourself lots of money

#132 Lost...but not leased on 02.25.18 at 1:38 pm

Doug…

Any opinions re TD Wealth ?

My late mother had them deal with her investments.
In due course, as co – executor, I will be delving into her finances.

#133 waiting on the westcoast on 02.25.18 at 2:16 pm

Huh, KO, Keith in Rio…

I don’t think he actually wanted your ID. He was trying to demonstrate how different it is to publically express your views versus anonymously expressing it. Different factors, different consequences, and different outcomes for all.

#134 Tony on 02.25.18 at 2:54 pm

Re: #73 Smoking Man on 02.24.18 at 8:43 pm

I’m still waiting for the movie about the life of Alex “Hurricane” Higgins.

#135 Bby renter on 02.25.18 at 6:16 pm

Flop….

I would love to help you out on the Richmond listing but my realtor only has me set up for detached homes in Burnaby, North Van and certain parts of Vancouver as these are the parts of the city I’m considering when we decide to jump back into the market…one day.
I asked ber to expand the search but i think there is a limit on number of neighborhoods or quantity of listings on the Private Client Services website. I could be wrong so I’ll ask again when i see her next.
I check out that site every other day so i’ll comment if any of your inquiries fall into those neighborhoods.

#136 Investor 2018 on 02.25.18 at 9:30 pm

Investing is a continuum, be passive when the market is overpowered by momentum. Shift to active management when this decreases. We are in a stock picking market at the moment. I own stocks, ETFs and MFs, they all have a place in my portfolio. Find the right PM that you are aligned with/ no you can never be but like their way of thinking. It can be just as difficult as choosing a stock.

#137 Buttercup on 02.26.18 at 4:11 am

#133 waiting on the westcoast on 02.25.18 at 2:16 pm
Huh, KO, Keith in Rio…

I don’t think he actually wanted your ID. He was trying to demonstrate how different it is to publically express your views versus anonymously expressing it. Different factors, different consequences, and different outcomes for all.

I agree with waiting on this (also from the west coast!).
Surely it is easy to see how it is very different to express an opinion with no possibly of having it come back to you personally, under the veil of anonymity.

#138 Buttercup on 02.26.18 at 4:40 am

#128 #119 AB Boxster on 02.25.18 at 11:57 am

Seriously?
There is a 4% difference between the 2 identical funds just because of CDN dollar hedging?

So then is it the case that one should never buy CDN dollar hedged ETF’s

The performance difference of the hedged ETF is both the Cost of the hedging itself AND the change in the foreign currency.
The non-hedged version allows you to buy and hold in CAD but you still participate in the USD, or other currency.
But never say never! It depends…on your other holdings, investment time horizon, risk tolerance, eventual purpose for the funds for example.
This is a tricky area, so some careful consideration is wise.

#139 What do I know? on 02.26.18 at 1:28 pm

“Real estate’s quickly become illiquid in many places, including once-sizzling Toronto hoods. – Garth

———————————————————

RE in NOT illiquid. Nicki is just being delusionally greedy. The house will sell quickly if priced right. The spring of 2017 was an aberration and she has to realize that. Holding on till RE inflates some more makes sense. In 10 years time TO RE will be worth much more than it is today.