Why Smart Investors Think Beyond Their Border

 

Sarah Jane’s alarm goes off at 7am.

She checks messages on her Samsung Galaxy phone.

After getting dressed, she packs her lunch, including some raw organic veggie bars that she bought at Trader Joe’s.

After work, she’ll be going to her yoga class. She packs her Adidas running shoes.

She climbs behind the wheel of her Toyota Prius while reaching for a new pair of glasses that she bought at Sunglass Hut.

As she passes the Holiday Inn, Sarah notices that she needs to get gas.

Image by Pixabay

Read the rest of the story at AssetBuilder.com





Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (Wiley 2011) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use.

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4 Responses

  1. Arman Mirchandani says:

    Andrew – Read your book a few years ago, been following your blog all along, big fan of your fact/number-based articles and “clean” writing style. Especially appreciate articles such as these which go beyond the “generic” index investor sermon. Could you possible run a similar scenario for the Canadian stock market e.g. VCN based on CAPE? In other words, is the Canadian market over or under valued based on a similar analysis? Thank you.

    • Hi Arman,

      Canada’s CAPE ratio was below its historical norm about 18 months ago. Today, (after an 18% gain last year) it’s roughly even with its historical average. I wrote a few stories about that for the Globe and Mail.

      Cheers,
      Andrew

  2. Sukhbinder Singh says:

    Hi Andrew,

    Do you know of a reliable source that give CAPE ratios for different countries. As you say, CAPE ratios can provide guidance in determining potential future returns.

    • I don’t think you should concern yourself with CAPE ratios. Instead, build a diversified, global portfolio. Add money every month or quarter. Rebalance once a year. If you do so, you’ll always be a little bit greedy when others are fearful and vice versa. Concerning yourself with CAPE ratios might turn you into a speculator.

      Cheers,
      Andrew

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