Category: All Posts

Evidence-Based Investing: Part Four: Asset Allocation Should Be Based On Risk Tolerance And Disciplined Rebalancing

The core principle of an evidence-based approach is that risk and return are related. The remaining principles of the evidence based approach flow from this core principle. In the third installment of our series on Evidence-Based Investing we presented some of the evidence which demonstrates that investors should diversify their investment holdings.  In this fourth installment we focus […]

Evidence-Based Investing: Part Three: Investment Portfolios Should Be Diversified

The core principle of an evidence-based approach is that risk and return are related. The remaining principles of the evidence based approach flow from this core principle. In the second installment in our series on Evidence-Based Investing we presented some of the evidence which demonstrates that a buy and hold “passive” investment strategy will outperform […]

Evidence-Based Investing: Part Two: Passive Investing Outperforms Active Investing

The core principle of an evidence-based approach is that risk and return are related. The remaining principles of the evidence based approach flow from this core principle.  In this second installment in our series on Evidence-Based Investing we present some of the evidence which demonstrates that over time a buy and hold “passive” investment strategy will outperform an “active” strategy […]

Why Do Many Reasonable People Doubt The Science of Investing?

The lead article in the current issue of National Geographic, “Why Do Many Reasonable People Doubt Science?” is worth a read for those bewildered why more people haven’t embraced the science of investing.  Many investors still seem willing to pay high fees for professionals to try to beat the stock market when the evidence demonstrates that investment returns are driven by risk […]

Will innovation or regulation drive change for investors in Canada?

One of the core principles of Chalten’s Evidence Based Approach is that investors should not pay a professional money manager to beat the market by picking stocks or trying to time the market’s ups and downs.  Over the long run, it doesn’t work.  The investment returns you can expect to receive should depend only on how much and what […]

Canadians Need to Diversify, But How?

In July, 2014, Vanguard Canada published a report titled Global equities: Balancing home bias and diversification – A Canadian investor’s perspective. Using data from the IMF, Vanguard showed that Canadians on average allocate almost 60% of their equity holdings to Canadian stocks, a significant overweight considering that Canadian stocks represent less than 4% of the global […]