In late April three people asked me what I would invest in if i started out, these people all worked in the same place. they were retail cdn. investors two were just starting to invest, or did not yet begin.
1. Buy a cdn. bank. the big 5 cdn. banks, the one you bank at is good enough but my top 3 would be TD, Royal bank, BNS scotiabank. note also own BMO, and CIBC. ( played an option on CIBC that made me 15-20% good news, bad news if I just held it for another month would have almost doubled.)
these banks are up over 10% since then, these are just good long term holds, they yield more than 3%, and over time have gone up 10-15%. yes they can be volatile in bad markets, but still long term 10-15%.
so buy a bank stock, note: cdn. banks have not cut their dividends even during the depression. note they would be short term holds, but long term buys, note would have said that in April. worth building up a postion.
2. jr. mining stocks, was asked about a jr. mining stocks, 95% of these lose money and that could be higher, this is a high risk gamble, and with gold dead not why sure you want to be there, many jr. mining companies can be momentum stocks, now is not the time. these are only trades and never investments.
3. buy the index XIC : just buy an etf with low mer that track the Toronto Stock exchange. you can do the same thing with the bond part of your portfolio, cheap way to diverisfy.
4. pay down all debt.
5. do not invest in anything complicated, espcially starting out, was not enough time how I lost money on Cofffee futures in the late 90s, if not sure of how the market works out avoid.
do not invest in guaranteed GIC/CD that are tied to the market in most cases high fees and not worth it.
thanks
selkirk
1. Buy a cdn. bank. the big 5 cdn. banks, the one you bank at is good enough but my top 3 would be TD, Royal bank, BNS scotiabank. note also own BMO, and CIBC. ( played an option on CIBC that made me 15-20% good news, bad news if I just held it for another month would have almost doubled.)
these banks are up over 10% since then, these are just good long term holds, they yield more than 3%, and over time have gone up 10-15%. yes they can be volatile in bad markets, but still long term 10-15%.
so buy a bank stock, note: cdn. banks have not cut their dividends even during the depression. note they would be short term holds, but long term buys, note would have said that in April. worth building up a postion.
2. jr. mining stocks, was asked about a jr. mining stocks, 95% of these lose money and that could be higher, this is a high risk gamble, and with gold dead not why sure you want to be there, many jr. mining companies can be momentum stocks, now is not the time. these are only trades and never investments.
3. buy the index XIC : just buy an etf with low mer that track the Toronto Stock exchange. you can do the same thing with the bond part of your portfolio, cheap way to diverisfy.
4. pay down all debt.
5. do not invest in anything complicated, espcially starting out, was not enough time how I lost money on Cofffee futures in the late 90s, if not sure of how the market works out avoid.
do not invest in guaranteed GIC/CD that are tied to the market in most cases high fees and not worth it.
thanks
selkirk