Money Sense

[Anonymous]

<t>I'm sorry to those that intend to vote for the NDP in October. People have their reasons for voting for whatever party they wish. Maybe there are planks or their platform you think will be beneficial to the nation. But, I work in the financial services industry. My job is to make sure your money is working for you. Unfortunately, an NDP victory will make my job more difficult.



The bulk of the TSX is made of financials/banking and resource companies. Financials and energy together account for almost 60 per cent, and important sectors such as health care, tech and consumer staples are under 5 per cent. The NDP has an ideological bias against resource extraction even though that has made Canada the envy of the world. There was a negative market reaction to the NDP victory in Alberta. There will be an even bigger and longer one if the NDP wins federally in October. It doesn't help that September and October are the most volatile months for the markets.



1. If you are among the millions of Canadians who has TFSA, you know it must be invested in Canadian companies. However, there are so many ways around that. If you purchase it through your Canadian bank and they put Apple shares in your portfolio that counts as Canadian content.



2. Take as little risk as possible. I have a client that has a conservative growth mutual fund that he bought in September that has earned over 2% since then. It is only 30% Canadian content. The US market being much more diverse than any other in the world helps insulate Canadian investors from a slide in resources.



3. Bonds are a safer bet. Bonds are debt as opposed to stocks which are equity. You don't share in the profits, but you get your principal plus interest. There has been a divestment from Canadian bonds recently, but it  was entirely due to provinces.  Although rates are low, they are a hedge against the stock market declines.



4. If you buy bank stocks do it before earnings reports come out.



5.Obviously avoid index funds. There is an ETF called Vanguard FTSE Canada All Cap Index ETF (VCN). Exposure to smaller stocks adds to volatility, but also offers the potential for higher returns than a portfolio focused only on blue chips.



6.  Sector Diversification--Canadian dividend funds are laced with bank stocks. If you own one of them and a Canadian equity fund, you've maxed out on financials. I'm not being bearish on bank stocks, it's just a reminder to diversify sensibly. Canadian banks have delivered great returns over the long term though.



7. Don't gamble--double-up or double-down ETF that happens to be moving are RISKY. This gambling, not prudent investing.



We will get through this, but the markets do not like the unknown. An NDP government is a big unknown. Investing in Canada under such a scenario will require greater knowledge than in the past.</t>

[Anonymous]

I should add that a rise in US interest rates will put a damper on US holdings. The American market is overvalued, and there has been a movement towards European equities. Countries like Germany are benefitting from a weak Euro and low oil prices.

[cc]

Thanks seoulbro.



We saw this and some other general things coming and have switched mainly to bonds and have been thinking about  switching  some for bank stocks.



Hearing you gives me more confidence that we are doing the best thing at this point in time



We are at this moment examining  the situation overall and making cold hard decisions



Further, we would agree that the US is not an escape as stocks are as you said overpriced  . greatly so in our book. That market may soon be deadly we figure. It is falling fast of late, still it is not  a time to buy in.



You do have me thinking about a small % European equity, although frankly I do not have a good feeling about the world in general having any solidity at this time.



Thank you again for your advice!!

[Anonymous]

Thank you seoulbro and cc la femme..



We trust our investing to our financial adviser at our bank..



And we have made slow, but steady growth..



We should make an appointment to see her and get her input about any changes we should be making in the near future.

[J0E]

If the only measure of a government was how our stocks are performing, then would just all vote for an index fund or a corporation as our leader.



But of course it's more than that.



Ie - does the leader have any integrity?

Is the leader/party in power actually doing anything for the people? Or are they slashing our programs and services?

Are they stepping on our basic rights/curtailing our freedoms?

Do they care about retaining good paying jobs in this country?

Do they even CARE about this country and its people?

Do they treat all people from each region of the country equally?

Or do they just see their mandate as a grab bag for their friends, cronies and special interest groups?



Anyways, something to think about.

I'm sorry to those that intend to vote for the NDP in October. People have their reasons for voting for whatever party they wish. Maybe there are planks or their platform you think will be beneficial to the nation. But, I work in the financial services industry. My job is to make sure your money is working for you. Unfortunately, an NDP victory will make my job more difficult.



The bulk of the TSX is made of financials/banking and resource companies. Financials and energy together account for almost 60 per cent, and important sectors such as health care, tech and consumer staples are under 5 per cent. The NDP has an ideological bias against resource extraction even though that has made Canada the envy of the world. There was a negative market reaction to the NDP victory in Alberta. There will be an even bigger and longer one if the NDP wins federally in October. It doesn't help that September and October are the most volatile months for the markets.



1. If you are among the millions of Canadians who has TFSA, you know it must be invested in Canadian companies. However, there are so many ways around that. If you purchase it through your Canadian bank and they put Apple shares in your portfolio that counts as Canadian content.



2. Take as little risk as possible. I have a client that has a conservative growth mutual fund that he bought in September that has earned over 2% since then. It is only 30% Canadian content. The US market being much more diverse than any other in the world helps insulate Canadian investors from a slide in resources.



3. Bonds are a safer bet. Bonds are debt as opposed to stocks which are equity. You don't share in the profits, but you get your principal plus interest. There has been a divestment from Canadian bonds recently, but it  was entirely due to provinces.  Although rates are low, they are a hedge against the stock market declines.



4. If you buy bank stocks do it before earnings reports come out.



5.Obviously avoid index funds. There is an ETF called Vanguard FTSE Canada All Cap Index ETF (VCN). Exposure to smaller stocks adds to volatility, but also offers the potential for higher returns than a portfolio focused only on blue chips.



6.  Sector Diversification--Canadian dividend funds are laced with bank stocks. If you own one of them and a Canadian equity fund, you've maxed out on financials. I'm not being bearish on bank stocks, it's just a reminder to diversify sensibly. Canadian banks have delivered great returns over the long term though.



7. Don't gamble--double-up or double-down ETF that happens to be moving are RISKY. This gambling, not prudent investing.



We will get through this, but the markets do not like the unknown. An NDP government is a big unknown. Investing in Canada under such a scenario will require greater knowledge than in the past.

[Anonymous]

Frank, this thread is about protecting our hard earned investments, not politics..



If you have any advice to offer us about where we should put our money based on current conditions please let us know.

If the only measure of a government was how our stocks are performing, then would just all vote for an index fund or a corporation as our leader.



But of course it's more than that.



Ie - does the leader have any integrity?

Is the leader/party in power actually doing anything for the people? Or are they slashing our programs and services?

Are they stepping on our basic rights/curtailing our freedoms?

Do they care about retaining good paying jobs in this country?

Do they even CARE about this country and its people?

Do they treat all people from each region of the country equally?

Or do they just see their mandate as a grab bag for their friends, cronies and special interest groups?



Anyways, something to think about.

I'm sorry to those that intend to vote for the NDP in October. People have their reasons for voting for whatever party they wish. Maybe there are planks or their platform you think will be beneficial to the nation. But, I work in the financial services industry. My job is to make sure your money is working for you. Unfortunately, an NDP victory will make my job more difficult.



The bulk of the TSX is made of financials/banking and resource companies. Financials and energy together account for almost 60 per cent, and important sectors such as health care, tech and consumer staples are under 5 per cent. The NDP has an ideological bias against resource extraction even though that has made Canada the envy of the world. There was a negative market reaction to the NDP victory in Alberta. There will be an even bigger and longer one if the NDP wins federally in October. It doesn't help that September and October are the most volatile months for the markets.



1. If you are among the millions of Canadians who has TFSA, you know it must be invested in Canadian companies. However, there are so many ways around that. If you purchase it through your Canadian bank and they put Apple shares in your portfolio that counts as Canadian content.



2. Take as little risk as possible. I have a client that has a conservative growth mutual fund that he bought in September that has earned over 2% since then. It is only 30% Canadian content. The US market being much more diverse than any other in the world helps insulate Canadian investors from a slide in resources.



3. Bonds are a safer bet. Bonds are debt as opposed to stocks which are equity. You don't share in the profits, but you get your principal plus interest. There has been a divestment from Canadian bonds recently, but it  was entirely due to provinces.  Although rates are low, they are a hedge against the stock market declines.



4. If you buy bank stocks do it before earnings reports come out.



5.Obviously avoid index funds. There is an ETF called Vanguard FTSE Canada All Cap Index ETF (VCN). Exposure to smaller stocks adds to volatility, but also offers the potential for higher returns than a portfolio focused only on blue chips.



6.  Sector Diversification--Canadian dividend funds are laced with bank stocks. If you own one of them and a Canadian equity fund, you've maxed out on financials. I'm not being bearish on bank stocks, it's just a reminder to diversify sensibly. Canadian banks have delivered great returns over the long term though.



7. Don't gamble--double-up or double-down ETF that happens to be moving are RISKY. This gambling, not prudent investing.



We will get through this, but the markets do not like the unknown. An NDP government is a big unknown. Investing in Canada under such a scenario will require greater knowledge than in the past.

[cc]

Frank, this thread is about protecting our hard earned investments, not politics..



If you have any advice to offer us about where we should put our money based on current conditions please let us know.

Softly but decisively and well done  



EDIT - Afterthought - I'd prolly have decked him if I had seen it first  ac_smile



He didn't even get what it was about > "in the unfortunate case that the NDP wins the election ....."

[Anonymous]

Frank, this thread is about protecting our hard earned investments, not politics..



If you have any advice to offer us about where we should put our money based on current conditions please let us know.

Softly but decisively and well done  



EDIT - Afterthought - I'd prolly have decked him if I had seen it first  ac_smile



He didn't even get what it was about > "in the unfortunate case that the NDP wins the election ....."

I don't think Frank understood what this thread is about either..



I think we should have a thread only for investing like we have for laughter and music and sticky..



It's something that's important to most people and perhaps posters or guests could find something useful in it.

[cc]

Great idea. I vote "YES"

[Anonymous]

I don't think Frank understood what this thread is about either..

Of course he understands. The problem is that he doesn't give a shit. He's a troll ffs. He lives for negative attention.

[cc]

You know, Fash, this site is becomes an exceptional site, well organized, diverse, good people, good ideas, good posting



You just came up with another winning addition

[Anonymous]

Great idea. I vote "YES"

I will send a message to seoulbro and see if he would be willing to get the ball rolling.

[cc]

So, you are suggesting a new topic area added to the 5 at the top? called investing .. or something like that?



or  a single thread?

[Anonymous]

On the topic of investing, auto parts makers are doing well.

[Anonymous]

So, you are suggesting a new topic area added to the 5 at the top? called investing .. or something like that?



or  a single thread?

It's getting a little crowded at the top, so I was thinking a single thread and then sticky it.