Few Stock Bargains in Canada Despite Widening Valuation Gap with the U.S.

Few Stock Bargains in Canada Despite Widening Valuation Gap with the U.S.Investors bullish on Canadian stocks seem to be a dying breed. The S&P/TSX composite has declined more than 12 per cent since its near-term high in mid-April and the summer pullback has brought down valuations in a number of sectors to the point where some stocks such as the banks look like outright bargains compared to historical averages. Corrections tend to attract bargain hunters, but few buyers seem willing to…

Read More >>

Why More Market Mayhem May Be Awaiting Rattled Investors

Why More Market Mayhem May Be Awaiting Rattled InvestorsViolent market swings sent the S&P 500 into correction territory over a four-day period that began last Friday, while other markets around the world fared just as badly. But by the end of the week, investors who stayed put Monday were in the black. The panic selling that began last week turned into a mid-week rally, and markets either continued to either gain or at least stabilize through Friday. Perhaps,…

Read More >>

Why Real Estate Investors Should Look Around the World

Why Real Estate Investors Should Look Around the WorldThe U.S. has offered the best growth for global real estate investors in recent years, because extremely accommodative monetary policy has made financing extremely cheap. The sector has also attracted a lot of capital flows as people started to put the money they kept in cash during the financial crisis to work. But many didn’t necessarily want to buy regular stocks, due to the uncertainties about when earnings and economic…

Read More >>

Why Investors have to Adopt New Tactics From Time to Time

Why Investors have to Adopt New Tactics From Time to TimeAccording to investing pioneer Sir John Templeton, “The four most dangerous words in investing are: ‘this time it’s different.’” His admonishment, often quoted and treated as divinely inspired, refers to investors’ belief that the measurement of value changes in a fundamental way over time. Although Templeton’s essential point to invest in value rather than respond to trends or innuendo is sound, I much prefer the advice from another legendary investor,…

Read More >>

What Kind of Stocks Should You Hold in a TFSA?

What Kind of Stocks Should You Hold in a TFSA?It seems the conversation of investing in a tax-free savings account (TFSA) becomes quieter and quieter as the months go by in a year, and the conversation is most vibrant at the start of the year. Saving and investing should be a consistent act, so I’m bringing it up again. By investing instead of just saving, you’re looking for higher returns that come with higher risk. Before thinking about what…

Read More >>

How to Profit From a Tumbling Loonie

How to Profit From a Tumbling LoonieOver the past 12 months, the Canadian dollar has declined by 15% versus the U.S. dollar. And there are plenty of reasons why the loonie is likely to depreciate further. Let’s start with the Canadian economy, which contracted for the fourth month in a row in April. There’s now a real possibility that Canada is in the midst of a recession, and this could lead to further rate cuts by…

Read More >>

Wall Street Spikes, TSX Climbs After Upbeat U.S. Jobs Data

Wall Street Spikes, TSX Climbs After Upbeat U.S. Jobs DataCanadian stocks rose a second day, paring a weekly loss, after jobs data from Canada and the U.S. spurred speculation central banks won’t raise interest rates soon. Royal Bank of Canada and Toronto-Dominion Bank increased at least 0.5 per cent to pace gains among the nation’s largest lenders. Gran Tierra Energy Inc. added 1.4 per cent after agreeing to demands from investor West Face Capital Inc. to expand the company…

Read More >>

How REITs Satisfy the Need for Yield

How REITs Satisfy the Need for YieldThe global search for yield isn’t going anywhere. But since U.S. stocks are looking overvalued on several measures and the bond market is showing danger signs, real estate investment trusts are a pretty attractive option, particularly U.S. ones that should continue to perform well with a gradually improving economy. REIT dividend yields do not fully reflect the rally U.S. stocks have experienced in the past four years. Indeed, they’re remained…

Read More >>

Canadians Find New Way to Binge on Debt as Borrowing to Buy Stocks hit Record Levels

Canadians Find New Way to Binge on Debt as Borrowing to Buy Stocks hit Record LevelsDennis Colpitts could pay down the mortgage on his house in western Canada early if he wanted. He’s investing in the stock market instead — and in some cases borrowing to do so. With a mortgage rate of 2.35%, Colpitts said it makes more sense to put his money into stocks or other investments that hold the potential for higher gains. He primarily invests in exchange-traded funds, including through a…

Read More >>

Investors Move to Passive Funds While Stockpickers get Creative

Investors Move to Passive Funds While Stockpickers get CreativeUndaunted by the popularity and outperformance of index-tracking investments, mutual fund companies last year rolled out 193 new actively managed stock funds, many with some highly colorful concepts. The fund companies aren’t giving up their efforts to win investment dollars with their stockpicking prowess. Rather, they are floating funds that are increasingly niche-oriented in the hope of getting shelf space next to the generic S&P 500 index and other passive…

Read More >>