Stocks Expected to Fall as Economy Expectations Plunge

Stocks Expected to Fall as Economy Expectations PlungeThe resource-heavy Toronto stock market could be headed for another week of losses as commodity prices adjust to much lower expectations for economic growth. And while economic data this week is expected to show that the Canadian economy continued to grow in early summer, investors aren’t expected to find encouragement in the numbers as the economic outlook likely worsened in August. “Buckle up” for a rough ride, advised John Stephenson,…

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Index Investing Becoming a Victim of Its Own Success

Index Investing Becoming a Victim of Its Own SuccessToo much of a good thing can end up being bad. That includes using a benchmark index as the basis for an investing apparently. In the July 2010 paper (download here from SSRN; acknowledgement to Stingy Investor where I found the link) On the Economic Costs of Index-Linked Investing, NYU prof and NBER research associate Jeffrey Wurgler reviews some research results that are disquieting for investors who follow a passive…

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TSX drops on global growth concerns

TSX drops on global growth concernsToronto’s main stock index dropped on Monday to its lowest in nearly five months as energy, materials and financial issues receded on concerns about global economic growth. The broad-based decline came on thin trading on a day when U.S. markets were closed for the Independence Day holiday. Among the biggest decliners, Suncor Energy lost 0.9 percent to C$30.84, Royal Bank of Canada fell 0.9 percent to C$50.45 and Teck Resources…

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Low Cost Ways To Buy Dividend Stocks

Low Cost Ways To Buy Dividend StocksI recently did a review of ShareOwner discount brokerage, which promotes regular dividend stock purchases.  One thing that came out of that review, is that regardless of how cheap the trading costs are – regular purchases of stocks are quite expensive. In this post, I’m going to discuss some strategies to buy dividend stocks (or any other kind of stocks) in the cheapest manner possible at discount brokerages. Some low…

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Three Unique Problems I and Other Dividend Investors Face

Three Unique Problems I and Other Dividend Investors FaceDividend investors are a unique and frankly, quite a passionate bunch! Those of us who have research the topic extensively and believe strongly in it’s benefits understand the impacts it can have on our own portfolios over the long-term. As such, I continue to invest in dividend stocks. However, this has created some unique problems not all investors face when building a portfolio based on a strong and balanced asset…

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ADRs as a Dividend Investment

ADRs as a Dividend InvestmentFor those of you unfamiliar with the term ADRs, it stands for American depositary receipt. An ADR is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued in the U.S. by a bank or brokerage company. For dividend investors looking for diversification, ADRs can offer…

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Stock Selection For The Individual Investor

Stock Selection For The Individual InvestorThe latest stock market turmoil, in the fourth quarter of 2008 when stocks declined significantly, has left retail investors with a larger challenge than ever before. Many feel let down by their advisors, mutual funds, and the financial industry structure that is supposed to help them. Is it possible for an individual managing his or her own money to make their own stock selection decisions, when they likely don’t have…

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Using Put Options to Protect Your Portfolio

Using Put Options to Protect Your PortfolioAs options are a fairly sophisticated method of investing/speculating, I rarely write about them as I’m a big believer in sticking with the basics.  However, with the expectation of some sort of market correction between now and October 2010, I’ve had thoughts on ways to hedge a portfolio to reduce the potential for loss. One way to protect a portfolio is to purchase insurance in the form of put options. …

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The Kondratieff Wave: Tracking The Past Or Predicting The Future?

The Kondratieff Wave: Tracking The Past Or Predicting The Future?In 1926, Nikolai Kondratieff (also spelled Kondratiev or Kondratyev) published a study called Long Waves in Economic Life for the Agricultural Academy and Business Research Institute in Russia. Kondratieff noted that capitalist economies have long waves of boom and bust, that he described similar to the seasons in a year.  However, for presenting his work to Stalin showing that capitalism will always return, he was imprisoned and then eventually executed. …

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Dividend Increase is Not a Reason to Buy a Stock

Dividend Increase is Not a Reason to Buy a StockThere are many common misconceptions about dividend investing. For example, all dividend paying stocks are stable companies. Or, a dividend from a stock will more than offset any losses you receive in share price over the long term. However, there is one that I find most persistent in both new and experienced dividend investors. It is often viewed as a reason to buy a stock, yet it should never be…

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