History Shows US elections Cause Drop in Canadian Stocks

History Shows US elections Cause Drop in Canadian StocksAny slump in Canadian stocks in the wake of the U.S. presidential election will be fleeting, history suggests. And while this isn’t any normal election, market strategists say the brighter outlook for energy outweighs rising qualms about the outcome. Canadian stocks tend to sell off on a change in the White House, regardless of the winner, with the S&P/TSX Composite Index tumbling in the aftermath of eight of the past…

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The ETF Landscape in Canada Is Getting a Lot Harder to Traverse

The ETF Landscape in Canada Is Getting a Lot Harder to TraverseExchange-traded funds (ETFs) in Canada recently broke through the $100 billion mark in assets under management. And with more than 400 ETFs trading on the Toronto Stock Exchange, it’s getting a lot harder for self-directed investors to build consistent, easy-to-maintain portfolios without a bit of outside help. In the early days, it was simple enough: the classic “Couch Potato” ETF portfolio would have consisted of about four broad-based, low-cost ETFs….

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Here are 5 Reasons to Temper Your Enthusiasm on Gold Stocks

Here are 5 Reasons to Temper Your Enthusiasm on Gold StocksGold stocks have been on an absolute tear this year, with some, such as Kinross (K/TSX) or Richmont (RIC/TSX) up more than 100% in the first five months of the year. Smaller company shares have risen, generally, even more. Investors and fund managers are falling all over themselves trying to buy into the sector. Of course, we have seen this movie before: sometimes the sector keeps rallying after a big…

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Move Over RRSP, TFSA – 7 Strategies For Maximizing Investment Returns

Move Over RRSP, TFSA - 7 Strategies For Maximizing Investment ReturnsInvestors tend to focus first and foremost on gross returns. Since an investor only gets to keep their net return after-tax, tax should be an important factor when it comes to investment decisions. The most basic example of this is to make the most of available tax shelters. Most people are aware of tax shelters like RRSPs, TFSAs and RESPs, but, if you are self-employed, you can even create your…

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Accelerating Mortgage Payments will Free up Cash for RESP, Retirement Savings

Accelerating Mortgage Payments will Free up Cash for RESP, Retirement SavingsA couple we’ll call Harry, 35, and Tina, 37, are thriving in their careers. Harry, a geologist with a large company, brings home $5,730 a month. Tina, a management consultant in the chemical industry, adds $3,880, for total monthly disposable income of $9,610 a month. They have a two-year-old child. You could say that Harry and Tina are typical Canadians. Their income, though above average, is just enough to get…

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Five Things Investors Should Not So in a Bear Market

Five Things Investors Should Not So in a Bear MarketMost markets, and certainly most currencies and commodities, are now officially in a bear market. That’s the arbitrary term for anything that is down 20 per cent from its peak. Of course, many stocks are down 40 or 50 per cent or more, so we might need a new term to describe them — zombie market? That is, dead but still moving? Many investors fear a bear market, because it…

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5 Things To Do Before Watching Your Portfolio Crumble

5 Things To Do Before Watching Your Portfolio CrumbleIgnoring market volatility and handling market crashes are two of the toughest things investors have to face. There are a number of reactive strategies to handle them, but it’s probably better to take a proactive approach. Maybe you believe market volatility will continue or accelerate. Maybe you fear a crash or another 2008-type scenario. Regardless, you do not have to sit there and watch your portfolio decline in value. Here…

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How Bond ETFs Can Help During Big Market Selloffs

How Bond ETFs Can Help During Big Market SelloffsA well-known maxim in the world of investing is that to get a good read on the outlook for equities, you need look no further than the bond market. Gauging from all the latest hoopla in the world of bonds, greater caution looks to be in order. Stocks are no longer cheap, normalization in the U.S. is on the horizon, and the deflationary risks stemming from an earlier oil price…

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That Sketchy Moment When Stocks are Rising and Profits are Falling

That Sketchy Moment When Stocks are Rising and Profits are FallingThe stock market is grooving again, baby! Pure rock-and-roll! It’s like Springsteen stormed the stage in February and got the crowd back on its feet after some moody emo mope had us all crying in our beer, or whatever emo mopes drink. (Chamomile tea or puppy dog tears or hemlock or whatever.) To wit: The Standard & Poor’s 500 Index is up almost 6 percent in February. That’s an E-Street…

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Market Ups and Downs Spell End of Low Volatility Era

Market Ups and Downs Spell End of Low Volatility EraIn the last month, the U.S. stock market is down just 0.8 percent, but it’s been a bumpy ride: Since Dec. 9, the S&P 500 has had a 4 percent selloff, a 6 percent rally, and a 4 percent drop that ended Thursday with a two-day gain of 3 percent. Equities were hit hard again Friday – down almost 1 percent. Investors made queasy by the sharp selloffs and snapback…

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