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May 6, 2024 There are many differences between purchasing individual stocks compared to equity index funds and ETFs.. In an ETF or fund, trying to time your purchase is not an easy task. You are solely at the mercy of the market at that time. Determining intrinsic value in a fund or ETF is not really possible with the lack of transparency in exactly what the fund’s actual holdings are

April 15, 2024 Why are copper prices rising in a period of continuing strength in the US dollar globally and higher for longer interest rates? Most of you are familiar with the Wall Street algorithm that pushes commodity prices down when interest rates and the US dollar remain at elevated ;levels. Copper prices are rising because there is a global shortage of copper production as a result of the closure

April 10, 2024 Nominal m/m CPI 0.40% vs 0.30% expected Nominal y/y CPI 3.50% vs 3.40% expected Core CPI m/m 0.40% vs 0.30% expected Core CPI y/y 3.80% vs 3.70% expected My recent reduction in both equities and bonds in my Model Portfolios was a result of my concern that domestic US inflation would not come down as fast as expected. These numbers have materially reduced the probability of a

April 7, 2024 Looks cheap on a P/E, P/Book Value and on a EV/FWD EBITDA basis Stock may have a high dividend yield Company comes up as an attractive purchase on a stock screen due to cheap valuation Reality: Free Cash Flow does not cover the dividend Highly levered balance sheet Highly competitive industry Low valuation persists for a long period of time Poor historical and projected growth in Revenues,

March 20, 2023 I am now offering a new educational service to help investors learn how to manage their own capital. I am offering three packages- 3, 5 and 10 hour packages in 1 hour sessions by zoom call. Learn how to read financial statements to improve your investment returns Learn how individual bonds and bond ETFs work Learn how to set up and actively manage an investment portfolio tailored

CRA is implementing new trust reporting requirements for T3 returns for Bare Trusts. The reporting deadline is the end of March and there are severe penalties for not reporting. CRA is being intentionally confusing about who has to report. My recommendation is to check with your accountant and to review CRA’s new reporting requirements for Bare Trusts.

February 15, 2024 It is more difficult finding the rationale for selling a stock compared to buying a stock. There are several main reasons as follows: If a single stock goes up in value and now represents more than 10% of your total market value of equities, it is important to trim back your position to below 10%. This type of sale is to reduce your portfolio risk. When you

December 22, 2023 Yesterday the former CEO of Franco-Nevada, Pierre Lassonde,  was being interviewed on BNN. He was being questioned about his outlook for both gold and copper. In regards to gold specifically, he stated emphatically that gold  acts as the antithesis of the US dollar. Taking into account the probability of both inflation and interest rates peaking in the US, the US dollar is expected to decline globally from

December 5, 2023 Interest rates and inflation have peaked in the US. This has resulted in a peaking of the US dollar globally. Do not remain in short term cash.  Extend bond maturity as economy slows down. Despite their current yields, avoid investing in GIC’s. The lack of liquidity is a real problem and there is a reinvestment risk owning them with rates declining.

July 7, 2023 Stock Market Basics I recently purchased the 7th edition of Graham and Dodd’s Security Analysis. A quote from the book is very revealing. “Public buys issues that are sold to it, and the sales effort is put forward to benefit the seller and not the buyer”. Differing from what many investors believe, the executives of small cap companies only want to see the share price rise in

June 28, 2023 In a bear market there is nowhere to hide in an index fund Fundamental valuation parameters that one normally uses to value individual companies are not nearly as transparent and available for index funds. Recommendation Use index funds for broad diversification and to invest sums of capital up to $10,000 Once you have amassed capital in excess of $10,000 start to invest in individual securities in conjunction

June 21, 2023 My monthly investment newsletter includes tactical investment advice including Asset Mix and Equity Sector Recommendations and Two Model Investment Portfolios consisting of individual Canadian and US companies and some fixed income ETF’S. Also includes purchase and sell recommendations and the rationale for making changes. My blog is updated periodically and its content is mainly for educational and information purposes, not tactical investment recommendations as in the case

June 21, 2023 Determine your overall investment objectives, and investment constraints– including time horizon, income needs, risk tolerance, tax considerations and maximum exposure to each security and each equity sector. Consolidated Asset Mix – Add up all your securities in all your related accounts. Convert all US and global investments to Canadian dollars simply for measurement purposes. Do not actually convert anything. Categorize your investments into Cash, Fixed Income and

June 17, 2023 Do not simply purchase the highest yielding securities Analyze the financial condition of the company to ensure that their dividend is sustainable Compare the current dividend to the free cash flow. If it is above 100%, the company is borrowing to pay their dividend. Review the current and projected growth in operating cash flow to determine if the company has the ability to increase their dividend. Purchasing

June 15, 2023 Many nervous investors are purchasing 5 year GICs instead of buying the common stock of banks. Their rationale is they think there is no risk in doing this. Unfortunately there is a great deal of risk. Domestic bank stocks are relatively cheap currently after the recent US Regional Bank issue has negatively affected all bank shares. Yes it is likely that share prices will experience even more

June 8, 2023 Incorporate this objective into your long term goals by following these strategies: Save regularly every month. Save investment management fees by managing your own capital. Get rid of high cost mutual funds, but make sure to minimize any remaining deferred sales charges. Create your own personalized investment portfolio consisting of a combination of individual stocks and bonds and low cost ETfs to meet your specific needs and

June 4, 2023 Day Trading is not recommended. This is a form of gambling Minimize the use of leverage Do Not buy stocks simply on a takeover rumour Complete your due diligence by reviewing a company’s fundamentals including Revenues, Earnings, Cash Flow and Balance Sheet Diversify your investments to reduce your risk Do not purchase a high dividend paying stock unless you have done your research to ensure that the

May 19, 2023 Many of these securities include both leverage and return of capital, making these returns extremely misleading. Something that seems too good to be true usually is. It is critical to do your fundamental research and not be misled by the marketing hype.

May 8, 2023 Achieving financial independence is not as hard as you may think. Below are some steps you can take to start the process Stop investing in high cost mutual funds now. The last monthly investment you made may involve DSC’s for up to seven years. Minimize Mutual Funds DSC’s by redeeming fee free units annually          Replace your mutual funds with much lower fee, Exchange

April 26, 2023 Check out the difference in share price performance for the following stocks: Last 6 months – Absolute price change Granite Reit at +23.26% vs. H&R Reit at +5.69% JP Morgan at +11.08% vs. Citigroup at +4.48% Microsoft at +19.15% vs IBM at -4.92% Alamos Gold at +65.16% vs. Barrick Gold at +25.23% While each pair of stocks above are in the same equity sectors, the share price