Investing and Texas Hold ‘em

Games of Subtle Skill and Exquisite Odds

April 5, 2018

Applying behavioural economics to investment outcomes is an interest that many seasoned wealth advisors share. And while most of us resist the comparison between investing and gambling, there are definite similarities that both pursuits share.

Writing in Kiplinger1, a Washington, D.C. based publisher of business forecasts and personal finance advice, Senior Editor Bob Frick developed an excellent analysis of card playing in the form of a piece called: How Texas Hold ‘em Simulates Investing.

Wrote Mr. Frick: ‘Of all the gambling games, Texas hold ’em best simulates investing. Other gambling games can spark the same errors, but poker is closer to investing because a good player can win consistently (whereas players will lose over time with games of chance such as roulette and blackjack). And Texas hold ’em involves many decisions per hand.’

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A TSX Moment in the Sun? Or at Least, Less Shade

The Week Ahead

April 2, 2018

Canadian equity investors who get their financial news from CNBC can be forgiven for thinking that stocks have only seen a mild correction. That’s true for the S&P 500, where the setbacks have been modest relative to 2017’s gains, but not for the TSX, which has corrected off a much less rosy base last year. But we could be due for a spell where the Canadian benchmark outperforms its US counterpart, if not necessarily for the reasons we would like to see.

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What to Make of the Week Gone By

The Week Ahead

March 27, 2018

Yes, this publication is called the Week Ahead, but give us some license to focus instead on the week gone by. There were so many crosscurrents in play that we’ll set aside the developing US-China trade war to key in on Canadian news.

First, there were signs that the US was softening its position on autos at the NAFTA negotiating table. Don’t get too excited about that just yet. There are still huge gaps between the parties on government procurement, dispute settlement and other key chapters.

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