Articles

Investment risk, one idea at a time

Short explainers in plain language, with Canadian data after inflation. Each one links to the matching part of the interactive guide.

Returns that compound less than they seem

• Inflation and real returns: what your money is actually earningHow inflation eats returns in Canada: CPI since 1914, what $100 lost since 1980, and how T-bills and GICs did after inflation.
• Volatility drag: why the average return isn't what you getWhy ups and downs shrink compound growth even when the average return is the same, with simple examples and Canadian market data from 1977 to 2025.

How portfolios fall, and why timing matters

• Drawdowns: how far portfolios fall and how long recovery takesHow deep stock, bond and balanced portfolios have fallen after inflation, how long they stayed underwater, and when bonds cushioned the fall.
• Sequence-of-returns risk: why the order of returns matters once you withdrawSame average return, opposite outcomes: why bad years early in retirement do more damage, and what has historically softened the risk.

Spreading and sizing risk

• Home bias: Canada is about 3% of the world's stock marketCanada is about 3% of the world's stock market. What the TSX's make-up and history show about home bias, with the arguments on both sides.
• Risk tolerance, risk capacity and risk need: three different questionsHow much investment risk fits a goal depends on three separate things. What tolerance, capacity and need mean, and why they often disagree.

Educational, not investment advice. The same information is shown to every reader and doesn't consider anyone's situation. Past returns don't guarantee future results.