Sixteen Volts

The latest issue of MoneySense magazine came in the mail yesterday. In its cover, the magazine announced a way to triple your stock market returns. I always have to wonder about such advice in magazines and on TV. If I had an investment strategy that was reasonably guaranteed to beat the market, or if I was aware of a company whose stock is going to rise in value in near future, I am sure that I could think of a more profitable use for this information than to announce it to the whole world in some magazine article or TV program. I would put my money where my mouth is, so to speak.

Soon it will again be the time to choose what mutual funds we make the RRSP investments in. Since I believe in the random walk view of the stock market, I just pretty much pick the funds randomly. When it is time to retire in thirty years or so, we'll see how profitable this strategy was. Another strategy would be to just pick index funds with their lower overheads, and this way piggyback and have a free ride on the wisdom of the market as a whole without putting anything back to the system.

Posted by Ilkka Kokkarinen on Wednesday, April 05, 2006 at 9:14 AM