The next session I went to Alex Koyfman of Penny Stock Millionaire was the speaker. His talk was called "Three Risk-Managed High-Potential Microcap Stocks to Own in 2016". He has 3 companies to consider for 2016. They are tech oriented, pre-profitable and have market caps under $50M.
The first company is MCW Energy Group (TSX: MCW-X, OTC: MCWEF) and it helps in environment and use of resources. The company cleans sand and gets the oil. It then returns clean sand back to the environment. The share price is currently $0.67. He sold at $1.02 and then rebought it at $0.67.
There are no negative side effects. It is proprietary tech and it is environment friendly. It does small oil processing now but will be scaling it up. 98% of bitumen is extracted from oil sands. It has 99.5% solvent recycling efficiency.
Dr. Bailey is a real Texas oil man. Alex Blyumkin is chairman of the board. In October 2014 they unveiled an initial extraction plant in Utah. In February 2015 they had net income of $2.2M and are losing less and less money. In September 2015, MCW awaits the completion of global financial institution's tech feasibility.
They have done work in China. China has bigger oil sands than we do. He recommends this stock under $1.00. Their web site is www.mcwenergygroup.com/.
The next company was Versus Technology Inc. (OTC: VSTI). They are trying to revolutionize how hospitals work. It is a dark stock and high risk. They are using RFID chips down to the smallest items in hospitals. Hospitals lose lots of stuff all the time due to organizational problems. It is also used for infection tracking and control. It can track things from patient 0 and know who all had contact. The decrease in loss of says ID pumps all add up.
Being a dark company means that they do not need to do quarterly reporting. You should buy under $0.17. The RDIF's are the size of a gain of rice. Its web site is www.versustech.com/.
The third company was Contagious Gaming Inc. The symbols are TSX V: CNS and OTC: KSMRF. It has online sports betting and electronic lotteries. It offers full services. It is a medium risk and share price is currently at $0.20. You should buy under $0.45.
Its growth drivers are a worldwide market, Soccer betting and the Grey market. For both online and land base betting Europe is further ahead than North America in allowing and doing online betting. Their web site is www.contagiousgaming.com/.
Most Canadian companies are listed on the OTC. In Buying Micro stocks, be prepared to lose it all. In looking at Canadian versus US trading, the Canadian listing is more liquid. That is the stock is more actively traded on the Canadian exchange. These stocks are harder to buy for American, but now they have available Penntract. (I tried to find this online, but unsuccessfully.) They have a Live Broker Option. The OTC analogue is in US$, so you will see lower prices due to USD/CAD exchange rates.
In regards to MCW Energy Group, oil was $28 a barrel but now costs around $22. If they do not get funding they are done for. However, there is 80 to 90% chance they will get funding. The process returns only water and sand back to the environment. There is zero net loss of water.
Email address for Alex Koyfman is Aukoyfman@gmail.com . His web site is www.angelpub.com/.
On my other blog I am today writing about Innergex Renewable Energy (TSX-INE, OTC-INGXF) ... learn more...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
Monday, November 30, 2015
Wednesday, November 25, 2015
Money Show 2015 - Rehman Moledina
The next session I went to was a talk by Rehman Moledina, whose talk was called "Why Wall Street Makes Money and You Don't". The sponsor of this talk was Online Trading Academy.
There is a retail mind set and an institution mindset. The retail uses fundamental analysis and tech and mechanical analysis. We do not have market makers in Canada, because Canada is too small. Retail trades on a website. Institutions trade direct with wholesalers in Canada. It is the second highest paid job, only athletes make more.
Fundamental analysis is not worth your time. Someone a lot smarter than you has already done this. What you should do is find the smart money on a chart. Trading is not about money but about time. Are you here to make money? No. You are here to learn how not to lose money. To live or survive is about not losing money. Money makes itself.
What retail investors do wrong.
Both are playing by different rules, but they are playing the same game. They higher the price of stocks makes people will buy stock. The lower the price of stocks, people will sell stock. If a TV is on sale, you will buy. But we do not do that with stocks. Market tops because of exhaustion of buyers. The lows occur because of exhaustion of sellers.
There are two types of orders in any market. There are Buy orders and Sell orders. An order can either be filled or unfilled. What causes prices to move are unfilled orders.
Stocks are not on sale when prices go up. So if prices have gone up do not buy. Buying is the wrong trade. So, you want to be on the opposite side of the wrong trade. The problem institutions have is that they have too much money. It is easier to buy 100 shares than 600,000 shares. Trading is all about supply and demand.
On my other blog I am today writing about Johnson and Johnson (NYSE-JNJ) ... learn more...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
There is a retail mind set and an institution mindset. The retail uses fundamental analysis and tech and mechanical analysis. We do not have market makers in Canada, because Canada is too small. Retail trades on a website. Institutions trade direct with wholesalers in Canada. It is the second highest paid job, only athletes make more.
Fundamental analysis is not worth your time. Someone a lot smarter than you has already done this. What you should do is find the smart money on a chart. Trading is not about money but about time. Are you here to make money? No. You are here to learn how not to lose money. To live or survive is about not losing money. Money makes itself.
What retail investors do wrong.
- They make decisions on Fundaments.
- They use brokers to manager money.
- They do not understand Retirement plans.
- They believe OAS/CPP will support them.
- They invest in Mutual Funds. These are not good investment vehicles. They have large fees and other fees. 62% of your entire account will be eaten up over 30 years.
- Investors do not understand fees.
- They have no plan for a down market.
- They are not properly diversified.
- They use Buy and Hold. Buy at any price and hold with no plan for gain or loss.
| Institutions and Banks | Retail traders/investors |
|---|---|
| Very Profitable | Struggles for profit or loss |
| They are selling | When buying |
| They are buying | When selling |
| Buy low and sell high | Buy high and sell low |
Both are playing by different rules, but they are playing the same game. They higher the price of stocks makes people will buy stock. The lower the price of stocks, people will sell stock. If a TV is on sale, you will buy. But we do not do that with stocks. Market tops because of exhaustion of buyers. The lows occur because of exhaustion of sellers.
There are two types of orders in any market. There are Buy orders and Sell orders. An order can either be filled or unfilled. What causes prices to move are unfilled orders.
Stocks are not on sale when prices go up. So if prices have gone up do not buy. Buying is the wrong trade. So, you want to be on the opposite side of the wrong trade. The problem institutions have is that they have too much money. It is easier to buy 100 shares than 600,000 shares. Trading is all about supply and demand.
On my other blog I am today writing about Johnson and Johnson (NYSE-JNJ) ... learn more...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
Monday, November 23, 2015
Money Show 2015 - Stock Whisperer
he next session I went to was run by Stefanie Kammerman, The Stock Whisperer. She says she does old fashion trading in a high tech world. Her site is here. She runs a Trading Boot Camp.
She says you start first with the psychological. She says you should start with paper trading before you use money. She used to have an overnight trading system, but now does day trading. She gave top reasons why traders fail.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
She says you start first with the psychological. She says you should start with paper trading before you use money. She used to have an overnight trading system, but now does day trading. She gave top reasons why traders fail.
- The first reason has to do with no exit strategy. You need exits. One is stop-loss. You should be prepared to lose each day. You also need a target exit. You should control the trade, not let the trade controlling you. You should scale into and out of stock. This gives you more room to run. You can get out of half of your stock, then half again.
- The next point was to watch your P & L., but do not stare at your money.
- The third point is timing. If timing is off you may feel you over traded.
- The next point is about chasing a stock. If you miss your entry point, do not take the trade.
- The next point is about a lack of confidence. If you freeze in action, like a buy, you are not ready to trade yet. You cannot trade if you have money pressure.
- Point 6 is lack of education. You have to know the difference between a gambler and a successful trader. You trade on the high probability of a successful trade.
- Point 7 is about self-sabotage and the fear of success. You do great all week, but on Friday you get into a trade that you should not have and lose what you have earned all week.
- What you want is
- A stock that trades 100,000 shares before the market is open.
- You want to trade stocks that have volume.
- You want stocks that have momentum. It does if it trades before the market opens.
- . If a stock pops up in the morning with no volume, it will drop like a rock later.
- Trade stocks worth less than $40 a share.
- The first reason has to do with no exit strategy. You need exits. One is stop-loss. You should be prepared to lose each day. You also need a target exit. You should control the trade, not let the trade controlling you. You should scale into and out of stock. This gives you more room to run. You can get out of half of your stock, then half again.
- The next point was to watch your P & L., but do not stare at your money.
- The third point is timing. If timing is off you may feel you over traded.
- The next point is about chasing a stock. If you miss your entry point, do not take the trade.
- The next point is about a lack of confidence. If you freeze in action, like a buy, you are not ready to trade yet. You cannot trade if you have money pressure.
- Point 6 is lack of education. You have to know the difference between a gambler and a successful trader. You trade on the high probability of a successful trade.
- Point 7 is about self-sabotage and the fear of success. You do great all week, but on Friday you get into a trade that you should not have and lose what you have earned all week.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
Wednesday, November 18, 2015
Money Show 2015 - Motley Fool
The next session I went to at the Money Show was the talk by Iain Butler of Motley Fool. His talk was called "Investing Foolishly in the Canadian Market". I found him a rather poor speaker. The Motley Fool site is here
The first company he talked about was Sandvine Corp. (TSX-SVC) is a Waterloo-based technology company. The cash flow is over $0.20 a share. He thinks that over the next decade this company could do great. It is a best buy now.
Another company he talked about was The Howard Hughes Corp. (NYSE-HHC). It is a Dallas company building planned communities.
He said the difference in the TSX and the S&P500 is that the TSX has little tech or healthcare and the S&P500 has lots. Another problem with the TSX is that it is mostly resource.
He also likes Finning International (TSX-FTT). He says in good times, this company has cash tied up in dealers' equipment. In bad times, it has more cash on hand because dealers need less stock on hand.
He says that the Motley Fool never looks at target prices. They want to recommend companies that will be worth more in 5 years' time. He also thinks it is worthwhile for Canadians to buy an ETF on the S&P500. The Motley Fool is a big fan of dividend paying stocks. He thinks Sandvine Corp is a great value play. He does not like companies with financial risks.
On my other blog I am today writing about Encana Corp. (TSX-ECA, NYSE-ECA) ... learn more...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
The first company he talked about was Sandvine Corp. (TSX-SVC) is a Waterloo-based technology company. The cash flow is over $0.20 a share. He thinks that over the next decade this company could do great. It is a best buy now.
Another company he talked about was The Howard Hughes Corp. (NYSE-HHC). It is a Dallas company building planned communities.
He said the difference in the TSX and the S&P500 is that the TSX has little tech or healthcare and the S&P500 has lots. Another problem with the TSX is that it is mostly resource.
He also likes Finning International (TSX-FTT). He says in good times, this company has cash tied up in dealers' equipment. In bad times, it has more cash on hand because dealers need less stock on hand.
He says that the Motley Fool never looks at target prices. They want to recommend companies that will be worth more in 5 years' time. He also thinks it is worthwhile for Canadians to buy an ETF on the S&P500. The Motley Fool is a big fan of dividend paying stocks. He thinks Sandvine Corp is a great value play. He does not like companies with financial risks.
On my other blog I am today writing about Encana Corp. (TSX-ECA, NYSE-ECA) ... learn more...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
Monday, November 16, 2015
Money Show 2015 - FinTech
I went to the FinTech investing Symposium. I am interested in this as I believe that the financial world is going to go through big changes in the future. The Host was Adam Najee, head of Financial Technology, MaRS Discovery District.
Mars FinTech is the 6th largest in the world as a FinTech hub. London's FinTech hub has 600 startups, New York has around 500 startups and Toronto has around 100 startups.
I have notes on the first two items in this Symposium. One is around Crowdfunding in real estate and the other is about Robo Advisers for financial planning.
Hitesh Rathod, CEO Nexus Crowd Inc.
Canada has the Nexus Crowd for crowd funding. A minimum investment is $10.000. This is for crowdfunding in Real Estate.
There is donation and rewards based crowdfunding. There is securities based crowdfunding (of equity or debt). There is global crowdfunding of securities and real estate. Real Estate crowd fund is $2.6B and growing. This is because of the high rate of return in the 15% to 25% range. There is a higher margin for commercial Real Estate than for residential Real Estate. These sorts of investments have not been available to individuals in the past.
There is 175 Real Estate crowdfundings in the US. In Canada there is only Nexus Crowdfunding. It is registered in Ontario. Private funding does not have to do regular quarterly reporting. The platform you invest in must provide financial reporting. Nexus has deals that are already 50% funded. They try for investments that are no longer than 5 years.
Algorithmic Investing: Meet the Bright Minds Behind the Revolution
Moderator: Pat Bolland, Former Co-Host, Sun News Network
Panel: Randy Cass, Founder, Nest Wealth, Mike Katchen, CEO, Wealth Simple
Cass: Nest Wealth uses Robo Advising. Tech removes emotional investing. It is sophisticated investing at low cost. It involves both tech and humans.
Katchen: Wealth Simple is Robo Advising. The company has an easy dashboard. It is built for young investors. They provide good services at good cost. Canada has some of the highest fees in the world.
Cass: Nest Wealth is looking at older wealthier clients.
Katchen: Wealth Simple is looking for younger clients. Clients with $10,000 and they will grow with their customers.
Cass: Nest Wealth uses iShares and cheap ETFs picked by asset classes.
Katchen: Wealth Simple also uses asset allocations. For this company you can sign up via a mobile app.
Cass: Nest Wealth uses banks to hold securities. They are considered to be fund managers and must invest in the best interest of clients.
Katchen: Wealth Simple uses algorithms to get best return based on risk level of investor. They use algorithms for investing and handling tax losses.
Cass: With Nest Wealth, 10 questions over 5 minutes and best practices will get you a portfolio.
Katchen: Wealth Simple does not do short term investing. If, for example, an investor wants to invest for 3 years, they will tell them to go to a bank and get a GIC. Wealth Simple is connected to Power Financial. Power Financial has a minority stake in Wealth Simple. They have 3,000 clients and are growing at 10% per week after 1 year in business.
Cass: Nest Wealth will not disclose client information. They have 500 advisors in the US and 12 in Canada. They started later in Canada. Banks are slow to change because they are making too much money the way things are now.
Katchen: Wealth Simple's algorithm was built internally.
Cass: Nest Wealth uses other people's algorithms. Active management Mutual Funds are expensive. Most of the Bank's Mutual Funds are like ETFs. Nest Wealth would like to eliminate Mutual Funds with fees over 2%.
Katchen: Wealth Simple does rebalancing and not whole sale changes. Clients cannot change their risk profile easily.
Cass: Nest Wealth feels that timing the market does not work. They never try to predict the market. Clients can change risk profile, but would need to have a conversation with an advisor.
Katchen: Wealth Simple does threshold and annual rebalancing.
Cass: Nest Wealth feels that there are massive changes coming to Financial Planning. People will get low financial management fees.
On my other blog I am today writing about CCL Industries Inc. (TSX-CCL.B, OTC-CCDBF) ... learn more...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
Mars FinTech is the 6th largest in the world as a FinTech hub. London's FinTech hub has 600 startups, New York has around 500 startups and Toronto has around 100 startups.
I have notes on the first two items in this Symposium. One is around Crowdfunding in real estate and the other is about Robo Advisers for financial planning.
Hitesh Rathod, CEO Nexus Crowd Inc.
Canada has the Nexus Crowd for crowd funding. A minimum investment is $10.000. This is for crowdfunding in Real Estate.
There is donation and rewards based crowdfunding. There is securities based crowdfunding (of equity or debt). There is global crowdfunding of securities and real estate. Real Estate crowd fund is $2.6B and growing. This is because of the high rate of return in the 15% to 25% range. There is a higher margin for commercial Real Estate than for residential Real Estate. These sorts of investments have not been available to individuals in the past.
There is 175 Real Estate crowdfundings in the US. In Canada there is only Nexus Crowdfunding. It is registered in Ontario. Private funding does not have to do regular quarterly reporting. The platform you invest in must provide financial reporting. Nexus has deals that are already 50% funded. They try for investments that are no longer than 5 years.
Algorithmic Investing: Meet the Bright Minds Behind the Revolution
Moderator: Pat Bolland, Former Co-Host, Sun News Network
Panel: Randy Cass, Founder, Nest Wealth, Mike Katchen, CEO, Wealth Simple
Cass: Nest Wealth uses Robo Advising. Tech removes emotional investing. It is sophisticated investing at low cost. It involves both tech and humans.
Katchen: Wealth Simple is Robo Advising. The company has an easy dashboard. It is built for young investors. They provide good services at good cost. Canada has some of the highest fees in the world.
Cass: Nest Wealth is looking at older wealthier clients.
Katchen: Wealth Simple is looking for younger clients. Clients with $10,000 and they will grow with their customers.
Cass: Nest Wealth uses iShares and cheap ETFs picked by asset classes.
Katchen: Wealth Simple also uses asset allocations. For this company you can sign up via a mobile app.
Cass: Nest Wealth uses banks to hold securities. They are considered to be fund managers and must invest in the best interest of clients.
Katchen: Wealth Simple uses algorithms to get best return based on risk level of investor. They use algorithms for investing and handling tax losses.
Cass: With Nest Wealth, 10 questions over 5 minutes and best practices will get you a portfolio.
Katchen: Wealth Simple does not do short term investing. If, for example, an investor wants to invest for 3 years, they will tell them to go to a bank and get a GIC. Wealth Simple is connected to Power Financial. Power Financial has a minority stake in Wealth Simple. They have 3,000 clients and are growing at 10% per week after 1 year in business.
Cass: Nest Wealth will not disclose client information. They have 500 advisors in the US and 12 in Canada. They started later in Canada. Banks are slow to change because they are making too much money the way things are now.
Katchen: Wealth Simple's algorithm was built internally.
Cass: Nest Wealth uses other people's algorithms. Active management Mutual Funds are expensive. Most of the Bank's Mutual Funds are like ETFs. Nest Wealth would like to eliminate Mutual Funds with fees over 2%.
Katchen: Wealth Simple does rebalancing and not whole sale changes. Clients cannot change their risk profile easily.
Cass: Nest Wealth feels that timing the market does not work. They never try to predict the market. Clients can change risk profile, but would need to have a conversation with an advisor.
Katchen: Wealth Simple does threshold and annual rebalancing.
Cass: Nest Wealth feels that there are massive changes coming to Financial Planning. People will get low financial management fees.
On my other blog I am today writing about CCL Industries Inc. (TSX-CCL.B, OTC-CCDBF) ... learn more...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
Wednesday, November 11, 2015
Money Show 2015 - ETFs
The next item at the Opening Ceremonies of the Money Show for 2015 was an ETF Panel. This panel was called "Building an Effective Global Portfolio Using ETFs". Pat Dunwoody, Executive Director of Canadian ETF Association was the Moderator. The Panel was Ted Bader , National Sales Manager, National Accounts, SIA Wealth; Pat Chiefaio, Managing Director, iShares and Alfred Lee Portfolio Manager, BMO Assets Management Inc.
The message is that it is a good time to use global EFTs.
Lee: BMO has 69 ETFs. If you pay a fee, they will tell you have to manage an ETF Global Portfolio.
Chiefaio: Most goods we use are not Canadian. The iShares site has 4 models for investing globally with their ETFs
Bader: There is less co-relations worldwide. It is best to do a top down approach to investing with Global ETFs. We all have a home country bias. There are tools on ETF sites to help you invest.
Chiefaio: ETFs are the most efficient way to access markets. There are different ETFs to access some markets.
Lee: There are tool kits for individuals because of ETFs in the same ways as there are tool kits for institutions. About 97% of the time active management underperforms indexes. Some ETFs have currency hedging.
Bader: You do have a tool kits and you can put them into practice without help. ETFs are how you protect yourself from the next bear market. Why you buy ETFs is to take the risk out of buying individual stocks. ETFs are a low cost way to buy a stock portfolio. You have liquidity, low cost and transparency.
Chiefaio: Takes depend on the underlining items on an ETF. You can day trade ETFs, but it depends on the ETF. ETFs trade at NAV and not necessarily the bid/ask price.
Bader: Buy US ETFs if you think the US is going to outperform other markets.
I believe that I only got part of this panel discussion. I am not really interested in EFTs, but I know a lot of people are. What surprised me what the comments that ETFs trade at NAV (i.e. Net Asset Value), not at buy/ask price.
On my other blog I am today writing about Brookfield Asset Management Inc. (TSX-BAM.A, NYSE-BAM) ... learn more...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
The message is that it is a good time to use global EFTs.
Lee: BMO has 69 ETFs. If you pay a fee, they will tell you have to manage an ETF Global Portfolio.
Chiefaio: Most goods we use are not Canadian. The iShares site has 4 models for investing globally with their ETFs
Bader: There is less co-relations worldwide. It is best to do a top down approach to investing with Global ETFs. We all have a home country bias. There are tools on ETF sites to help you invest.
Chiefaio: ETFs are the most efficient way to access markets. There are different ETFs to access some markets.
Lee: There are tool kits for individuals because of ETFs in the same ways as there are tool kits for institutions. About 97% of the time active management underperforms indexes. Some ETFs have currency hedging.
Bader: You do have a tool kits and you can put them into practice without help. ETFs are how you protect yourself from the next bear market. Why you buy ETFs is to take the risk out of buying individual stocks. ETFs are a low cost way to buy a stock portfolio. You have liquidity, low cost and transparency.
Chiefaio: Takes depend on the underlining items on an ETF. You can day trade ETFs, but it depends on the ETF. ETFs trade at NAV and not necessarily the bid/ask price.
Bader: Buy US ETFs if you think the US is going to outperform other markets.
I believe that I only got part of this panel discussion. I am not really interested in EFTs, but I know a lot of people are. What surprised me what the comments that ETFs trade at NAV (i.e. Net Asset Value), not at buy/ask price.
On my other blog I am today writing about Brookfield Asset Management Inc. (TSX-BAM.A, NYSE-BAM) ... learn more...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
Tuesday, November 10, 2015
Money Show 2015 - Globe and Mail
The next item at the Opening Ceremonies of the Money Show for 2015 was a Globe and Mail Panel. This panel was called "What Investors Need to Know Right Now". Scott Barlow, Market Strategist; Rob Carrick, Portfolio Strategies Columnist and Jennifer Dowty, Equities Analysts were on the panel.
Scott: What new investors should be in are stable companies with steady and stable cash flows over a long term period. These will outperform in a financial crisis. These are good companies that are Blue Chip. Why you should look for stable long term cash flow is because cash flow does not lie.
Jennifer: Investing takes time. You should stagger investments. You should always have an exit strategy. Know what down side risk that you are willing to stand. You want companies for which analysts are revising estimates up. You want companies that are diversified, that is has lots of customers. Look at fundamentals and the management team.
She gave a site of www.sedi.ca to check insider information, but I must admit when I looked at this side I found it hard to use and not useful at all. I have access to INK Reports and I have no trouble finding information on these reports.
She says what you should be looking for is whether insiders are accumulating or selling shares. She says that you should use technical analysis to determine when to get into or out of a stock.
Question: What about Cash as a Portfolio Allocation?
Scott: Cash is like a put option on the market. Warren Buffet has currently lots of cash. This is even true when interest on cash is just 60 basis points.
Jennifer: Cash is something that investors should consider. Cash is the outperforming investment this year.
Rob: Online Brokerages is so cheap, so you can buy investments in small bits. Use Investment Savings Accounts in your trading account.
Scott: Do you look at cheap trading as the ability to trade more. This is a mistake. Do not trade too much. Overtrading is a mistake.
Question: Is it a stock pickers market?
Rob: Currently Mutual Funds are outperforming the market.
Scott: It is not a stock pickers market. Active management tends to outperform in down markets. It is a macro driven market, this are themes.
Jennifer: Thinks it is a stock pickers market. It is a broad based market.
Question: Is there is also a bond bubble?
Rob: The Fed will raise interest rates.
Scott: China is selling US treasuries. They are selling a lot of them but it is having no effect on the market. Going for yield is not a good thing in the long term. A lot of shale oil companies cannot pay interest on their debts. There is no bond bubble
Jennifer: What you should have is dividend stocks and a few bonds. Dividend stocks are not necessarily safe. Dividends on oil companies are in decline. Even bank stocks have risk. Royal Bank (TSX-RY) is down.
Scott: The higher the yield the higher the risk. Do not chase dividends.
Jennifer: Higher yields are not higher risk. It depends on the company. For example REITs have higher yields but are not risker. Look at the companies.
Scott: Utilities and telecoms etc. are sensitive to interest rates and he does not think that they will climb much.
Question: Diversification: What does it look like today? (60 - 40)
Scott: The reason to diversity is to reduce risk. It is better to have bonds and stocks. We could go grinding on or we could do very well. We do not know what will happen.
Jennifer: Age or risk tolerance is what we should take into account re diversification. Have no more than 10% of portfolio in one stock. Diversify by industry and country.
Rob: If you have a defined benefit pension, you should consider it as a bond.
Scott: You should still buy US stocks. We have long periods when the Canadian Market outperforms the US. Now we are into a period when the US will outperform. This will be perhaps for 10 years. He likes tech stocks. Health Care stocks will have a demographic push.
Jennifer: Hold investments outside Canada. Does not see the CDN$ to US$ rebounding in the near term. Canadian market is 30% resources so it will underperform.
Rob: Should we hedge re foreign stock?
Scott: He is not in favour of hedging for individuals. Also Mutual Funds cannot predict currencies so they should stop hedging.
Jennifer: This time there is a lot of fear in the market. There is a market sale going on. When 40% bearish, 40% neutral and 20% bullish, it is a positive indicator. CNR had a break out today. A theme of emails is loss aversion. People do not want to accept a loss. There is the cockroach rule. If there is one there are lots. If a company has a problem, there may be more problems.
Scott: Selling is very difficult. The more exciting the portfolio, the more risk. A portfolio should be boring.
Jennifer: If an investor has a concern, they should email the public relations of the company. You should also listen to the conference call.
On my other blog I am today writing about TransForce Inc. (TSX-TIF, OTC-TFIFF) ... learn more...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
Scott: What new investors should be in are stable companies with steady and stable cash flows over a long term period. These will outperform in a financial crisis. These are good companies that are Blue Chip. Why you should look for stable long term cash flow is because cash flow does not lie.
Jennifer: Investing takes time. You should stagger investments. You should always have an exit strategy. Know what down side risk that you are willing to stand. You want companies for which analysts are revising estimates up. You want companies that are diversified, that is has lots of customers. Look at fundamentals and the management team.
She gave a site of www.sedi.ca to check insider information, but I must admit when I looked at this side I found it hard to use and not useful at all. I have access to INK Reports and I have no trouble finding information on these reports.
She says what you should be looking for is whether insiders are accumulating or selling shares. She says that you should use technical analysis to determine when to get into or out of a stock.
Question: What about Cash as a Portfolio Allocation?
Scott: Cash is like a put option on the market. Warren Buffet has currently lots of cash. This is even true when interest on cash is just 60 basis points.
Jennifer: Cash is something that investors should consider. Cash is the outperforming investment this year.
Rob: Online Brokerages is so cheap, so you can buy investments in small bits. Use Investment Savings Accounts in your trading account.
Scott: Do you look at cheap trading as the ability to trade more. This is a mistake. Do not trade too much. Overtrading is a mistake.
Question: Is it a stock pickers market?
Rob: Currently Mutual Funds are outperforming the market.
Scott: It is not a stock pickers market. Active management tends to outperform in down markets. It is a macro driven market, this are themes.
Jennifer: Thinks it is a stock pickers market. It is a broad based market.
Question: Is there is also a bond bubble?
Rob: The Fed will raise interest rates.
Scott: China is selling US treasuries. They are selling a lot of them but it is having no effect on the market. Going for yield is not a good thing in the long term. A lot of shale oil companies cannot pay interest on their debts. There is no bond bubble
Jennifer: What you should have is dividend stocks and a few bonds. Dividend stocks are not necessarily safe. Dividends on oil companies are in decline. Even bank stocks have risk. Royal Bank (TSX-RY) is down.
Scott: The higher the yield the higher the risk. Do not chase dividends.
Jennifer: Higher yields are not higher risk. It depends on the company. For example REITs have higher yields but are not risker. Look at the companies.
Scott: Utilities and telecoms etc. are sensitive to interest rates and he does not think that they will climb much.
Question: Diversification: What does it look like today? (60 - 40)
Scott: The reason to diversity is to reduce risk. It is better to have bonds and stocks. We could go grinding on or we could do very well. We do not know what will happen.
Jennifer: Age or risk tolerance is what we should take into account re diversification. Have no more than 10% of portfolio in one stock. Diversify by industry and country.
Rob: If you have a defined benefit pension, you should consider it as a bond.
Scott: You should still buy US stocks. We have long periods when the Canadian Market outperforms the US. Now we are into a period when the US will outperform. This will be perhaps for 10 years. He likes tech stocks. Health Care stocks will have a demographic push.
Jennifer: Hold investments outside Canada. Does not see the CDN$ to US$ rebounding in the near term. Canadian market is 30% resources so it will underperform.
Rob: Should we hedge re foreign stock?
Scott: He is not in favour of hedging for individuals. Also Mutual Funds cannot predict currencies so they should stop hedging.
Jennifer: This time there is a lot of fear in the market. There is a market sale going on. When 40% bearish, 40% neutral and 20% bullish, it is a positive indicator. CNR had a break out today. A theme of emails is loss aversion. People do not want to accept a loss. There is the cockroach rule. If there is one there are lots. If a company has a problem, there may be more problems.
Scott: Selling is very difficult. The more exciting the portfolio, the more risk. A portfolio should be boring.
Jennifer: If an investor has a concern, they should email the public relations of the company. You should also listen to the conference call.
On my other blog I am today writing about TransForce Inc. (TSX-TIF, OTC-TFIFF) ... learn more...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
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