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FEBRUARY 2016

Irrational Investing - Why Good People Make Bad Investment Choices Matt Poyner P.9

21 Ways To Reduce Investment Management Fees Warren MacKenzie P.14

BEATING theTSX

2015/2016 Annual Update

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30% OFF! DIFFERENCES AND DIVIDEND OPPORTUNITIES IN THE CANADIAN MARKET

Peter HodsonThursday, March 3 • 3:15 pm – 4:00 pm

ATTEND FREE! MEET INVESTING EXPERTS ∙ GAIN VALUABLE INSIGHTS ∙ RECEIVE PROFITABLE PICKS

EDITOR-IN-CHIEF - Peter HodsonMANAGING EDITOR: Lana SanicharCONTRIBUTING EDITORSEd Arbuckle, Margot Bai, Robert Barney, Dan Bortolotti, Ian Burns, Bruce Cappon, John De Goey, Donald Dony, David Ensor, Ken Finkelstein, Derek Foster, Benj Gallander, Robert Gibb, Andrew Hepburn, Shelley Johnston, Robert Keats, Cynthia Kett, Ken Kivenko, Camillo Lento, Marie-Josée Loiselle, Alan MacDonald, Brenda MacDonald, Gina Macdonald, Robert MacKenzie, Ross McShane, Ryan Modesto, Caroline Nalbantoglu, Tim Parris, Peter Premachuk, John Prescott, Kyle Prevost, Brian Quinlan, Wynn Quon, Rino Racanelli, Colin Ritchie, Scott Ronalds, Norm Rothery, Stephane Ruah, David Stanley, John Stephenson, Brian Tang, Angelo Vicere, Becky Wong.

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Canadian MoneySaver publishes monthly with three double issues (July/Aug, Nov/Dec and March/April). Canadian MoneySaver is an independent, totally membership-funded magazine.

The information contained in Canadian MoneySaver is obtained from sources believed to be reliable. However, we cannot represent that it is accurate or complete. The views expressed are those of the writers and not necessarily those of The Canadian Money Saver Inc. Neither the information nor any opinion expressed constitutes a solicitation by us for the purchase or sale of any securities or commodities. Canadian MoneySaver is distributed with the explicit understanding that Canadian MoneySaver, its publisher or writers cannot be held responsible for errors or omissions. Shareholders of The Canadian Money Saver Inc, editors and contributors may at times have positions in mentioned investments/securities.

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FEBRUARY 2016, Volume 35, Number 5

REGULAR FEATURES Shareclubs 4

Sharing With You 4

Dividend & Company News 5

Model ETF Portfolio 5

Coming Events 22

Money Digest 36

Canadian DRIPs with SPPs 37

Ask The Experts 38

Top Funds 40

Canadian ETFs 42

FEBRUARY 2016SPECIAL FEATURES

BTSX – 2015/2016 Annual Update Ross Grant 6

Irrational Investing- Why Good People Make Bad Investment Choices Matt Poyner 9

Is Silver Worth A Play During The Commodity Rout? Philip MacKellar and Benj Gallander 12

21 Ways To Reduce Investment Management Fees Warren MacKenzie 14

Is It Time To Buy Commodities? Andrew Hepburn 17

Are My Investment Advisor’s Cookie Cutter Asset Mix Recommendations Hurting My Performance? Peter McMurtry, CFA 19

Why Your Brain May Not Be Helping You Make The Best Decisions Alan MacDonald 21

Will That Be “Buy”, “Sell” Or “Hold”? Bill Carrigan 23

The Contented Investor Hedley Dimock 27

Mortgage Tips For Buying Investment Properties

Anson Martin 31

US Voluntary Disclosure Program Updated

Ed Arbuckle 33

Is Bigger Really Better? Leasing the Right Size and Shape of Commercial Space JeffGrandfieldandDaleWillerton–TheLeaseCoach35

STEVE FORBES

March 2-5, 2016Disney’s Contemporary ResortORLANDO

35th Anniversary

R EG I S T E R F R E E AT O r l and oMon eyShow.c om or Ca l l 8 0 0 - 9 70 - 4 3 5 5 Today ! MENT ION P R I OR I T Y CODE 0402 80

Platinum Sponsors Silver Sponsor Sponsor Media Partner

Your Free Registration Allows You to:

• Receive top stock, fund and ETF picks and recommendations from top experts

• Get varying perspectives on the elections and what it means for the economy and

your portfolio

• Speak candidly with your favorite experts and fellow investors

• Explore the exhibit hall and ask questions of representatives from top financial

product-and-service providers

JEFF

REY

SAUT

PAUL

LIM

STEP

HEN

MOO

RE

JERE

MY

OLSH

AN

DAVI

D KO

TOK

LARR

Y KU

DLOW

MAR

K M

ILLS

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E JO

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ONE

30% OFF! DIFFERENCES AND DIVIDEND OPPORTUNITIES IN THE CANADIAN MARKET

Peter HodsonThursday, March 3 • 3:15 pm – 4:00 pm

ATTEND FREE! MEET INVESTING EXPERTS ∙ GAIN VALUABLE INSIGHTS ∙ RECEIVE PROFITABLE PICKS

I don’t know about you, but I am starting to feel like Bill Murray in that

great movie, Groundhog Day. After all, it is February, and, well, I always thought February 2nd should be a Holiday.

Every day I wake up, there is another problem in the stock market or the world. China has devalued its currency (again). China has halted trading (again). Oil has declined (again). The market has dropped (again). Metals prices are plunging (again). The Canadian dollar has dropped (again). Terrorists have struck (again).

I remember, as a portfolio manager in October 2008, describing my day-to-day work experience to friends. The market was dropping 5%, 6% or more per day, and I used this analogy: ‘well, it’s like going to work each day, and then someone (in this case the market) hits you over the head with a shovel for 10 hours, and then you go home’. Then you wake up the next day and go back in for more punishment.

I remember, in those dark days of the financial crisis, going home after my mutual fund was down ONLY 1% that day and thinking, ‘hey, that was a pretty good day’. I had lost investors 1% in a day and considered it a good performance. That’s how bad things were.

So here we are again, with the worst market start in years, currencies dropping everywhere and investors throwing in the towel. What to do? Well, like Phil Connors (Murray’s character in the movie), learn from what is occurring. As an investor, there is nothing new here. China always causes problems. Oil is a cyclical commodity. Terrorists have been around for centuries. Take advantage of the fear, and scoop up good companies getting sold. Remember that most recessions are very short—nine months on average. Remember that markets always look really bad when they are falling, but, just like in the movie, things can turn around. Phil uses his time loop in the movie to learn French, play the piano, sculpt ice and impress everyone. He ends up with the girl of his dreams.

So, things are bad in the market. So what? You have seen it all before. Take advantage of this fact, knowing that this is just another ‘crisis’ that is going to end.

Sharing With You ShareClubs

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You may join any of the listed ShareClubs by contacting your local volunteer. Like-minded members get together to share financial information. No cost. No obligation. Just an inquiring mind.

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