Investment question
- Thread starter luckyjackson
- Start date
I don't trust those "educated, informed professionals" by default just because they have alphabetically soups of designation like CFP or CFA or both and good looking, seem nice personalities. Regardless of the money those insitutions spend on researches, technologies like the Bloomberg or creating "innovative" financial products/instruments (remember CDS, CDO, SIV and death bonds, which are selling like hotcakes nowadays). They are no better or worse than the so-called arm chair investors.
I am sure many of them have good intention at heart but the compensation is full of conflict of interest. It's tough not to be biased to sell house products ahead of clients interests. Some of them are at best glorified pharma sales agents soliciting paneceas to your financial woes, at worst used car salesman to solicit lemons. They all have to meet aggressive sales targets (grow the books in their terminology) to feed the bottom line of their financial institutions working for.
How many times these professionals, top 1% in particular are wealthier well before their clients? Maybe this time is different as it seems there's no discrmination between rich and poor in terms of losing your nest egg.
In terms of consensus, they could be right but they could equally suffer from herd mentality and turn out to be wrong too. Not saying TRP is a bad investment since I started to invest the shares right after they cut the dividend 10 years ago, completed the purchase around $10 per share and rebalanced out the whole position in RRSP a couple of years ago.
It's neither the fund manager/advisor nor their companies he or she is working for interest to recommend cash in the profit and leave the cash aside for future opportunites live on National TV. Cash alone does not generate commissions by churning and they recommend those stocks not necessarily because of good fundamentals. Equities like SC, TRI, TRP, BCE and even WN/L are leggards in terms of stock price compared to the index. Assuming there's no "black swan" event, the downside risk and volatility for these stocks are low but not impossible.
BTW, BNN looks "amateurish" compared to the Bloomberg and CNBC.
$20K is a lot of money for people living paycheque to paycheque and/or recent grads who are struggling to start a career and pay off the student loans.
Like I mentioned before, you should pay down all of debts, build up emergency funds and keep an eye on spending like a hawk before you ever invest a penny in stock market. No investments return short and medium term could beat that when you are debt free and in control of your spending.
Still, do not pass any free money your employer match to your DC plan. At minimum invest the % equal to your employer's match before paying down the debts.
TRP is safe compared to say TransAlta and slightly more attractive in terms of valuation compared to ENB. But the risks for TRP would be a collapse of natural gas price if there's double dip recession. Or the governments pose a cap on the toll charge TRP could raise. That's not include execution/management/cost overrun risks for future projects to transport natural gas for clean energy in the States.
For sure in non-registered accounts but you get paid for taking the risk and lower liquidity.
I dunno no but I do know is he can be unbelievely stubborned and big mouth
CAD banks are the strongest in the world by accident as the Liberals ban them from mergers back in 1998, so that they do not have excessive inflows of cash for the CEOs to do stupid things to get the bonus and become the big boys like the Goldman Sachs, BofA and even CITI.
In terms of productivity, there're still plenty of room for the CAD banks to increase productivity. It's mind bogging and crazy to saturate the market even further by increasing bank branches like retail clothing stores and hire part-timers to operate at the front like McDonalds. This is going to waste the banks a lot of money in overheads annually
Contrary to what the Canadian banks are doing, many banks in the world, including the Chinese ones are cutting the number of branches and focus on resources and money to intergrate IT, merge back offices into one simplified network and transform the remaining branches into stores that utilize automation and self-services on mundane day-to-day banking, freeing the staffs to focus on cross-selling products, including selling insurances in branches. Canadian Banks may be the safest but they're still years away to be the most productive banks in the world.
Im in a similiar situation, but want to start with only 10Gs.
They say Warren Buffet averages 20% yearly returns "consistently," while most day traders lose, even though there may be a few flukes/spikes/penny stocks etc... and even the decent ones, assuming enough to live off it, can make 8 -15%?
any opinion on this relatively new HNU HND - HOU HOD ETF horizon beta dealing with commodites of gas/oil and such? with bull/bear market, one goes down, just buy the other? =) someone i know has made decent returns past 3mths, ill see how he does past this winter, assuming it increases when weather gets colder..
safer than tech/penny stocks, but not as reliable/slower returns than long term bank stocks, such as RBC recently..
They say Warren Buffet averages 20% yearly returns "consistently," while most day traders lose, even though there may be a few flukes/spikes/penny stocks etc... and even the decent ones, assuming enough to live off it, can make 8 -15%?
any opinion on this relatively new HNU HND - HOU HOD ETF horizon beta dealing with commodites of gas/oil and such? with bull/bear market, one goes down, just buy the other? =) someone i know has made decent returns past 3mths, ill see how he does past this winter, assuming it increases when weather gets colder..
safer than tech/penny stocks, but not as reliable/slower returns than long term bank stocks, such as RBC recently..
I would also add, wasn't Eron or lots of American banks considered "solid" investment before they tanked? So what makes Trans Canada so different from those stocks? How do you know there is no accounting fraud going on? I just cant trust investing in a single company, way too much risk. Diversification is the only safe way, even so, it is not without downside risks.
Hinz,
- I trust the educated informed professionals, when it comes to investing they are smarter than I am. I have done quite well taking their advice.
- As far as the set backs that TRP had 10 years ago, it was a situation of short term pain for long term gain. They invested in intrastructure that is paying off big now.
- BNN vs. CNBC/Bloomberg. I watch them all, but I am the slow cautious investor that does not have to turn on a dime. By no mean am I a day trader, I am more like a quarterly trader. Although I always like to keep my powder dry and take advange of a good investement when it comes my way.
- Of course $20k is a lot of money to people who do not have it. I was just answering the question for the thread starter. He wanted to put away the money in a safe place where it can grow and compound for the short or medium term. TRP is good for the short, medium or long term with minimal risk. You can even trade it on the dips and peaks.
- As you said yourself, TRP is safe as compared to Trans Alta. Having said this, would you not also say that TRP is at the top of the list in the minimal risk catagory. I am certain TRP and the Canadian banks are in the top 10 Canadian safe stocks.
- Lower liquidity? Yes your bank account will have your money for you on demand, with your TRP stock you can have your money in a few days or maybe a weeek.
- Ahh, Kevin O'leary. I totaly agree with you that he is loud and opinionated, but he is very inteligent and interesting as borish as he is.
- Canadian banks are as conservative as they come, but extremly safe. Not as fun as those Texas banks that will give you a Smith and Wesson .44 if you open an account with them.
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Abstinent,
- $10,000 or $20,000, you are still in the same ball park. So I my opinion is not to diversify and stick with safe and sure. Which is Trans Canada Pipeline or a Canadian bank. Minimal risk, good upside, with a dividend 4.7% paid quarterly and you are taxed at a favorable rate. Thats my opinion, maybe Hinz has another suggestion?
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Diane-35
- The difference between Enron and Trans Canada Pipe is that Enron was a paper company that had few real assets, and Trans Canada Pipeline has infrastructure and good long term prospects. TRP is as solid as they get.
When we are talking about $10,000 or $20,000 it makes no sense to diversify.
I can not think of a better stock to buy where have good upside, minimal risk and a sure dividend.
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I can not think of a better investment for a person that wants to invest $20,000 for the short term. If there is something better out there maybe Hinz can tell us. I will be ahppy to know it.
wWw.
- I trust the educated informed professionals, when it comes to investing they are smarter than I am. I have done quite well taking their advice.
- As far as the set backs that TRP had 10 years ago, it was a situation of short term pain for long term gain. They invested in intrastructure that is paying off big now.
- BNN vs. CNBC/Bloomberg. I watch them all, but I am the slow cautious investor that does not have to turn on a dime. By no mean am I a day trader, I am more like a quarterly trader. Although I always like to keep my powder dry and take advange of a good investement when it comes my way.
- Of course $20k is a lot of money to people who do not have it. I was just answering the question for the thread starter. He wanted to put away the money in a safe place where it can grow and compound for the short or medium term. TRP is good for the short, medium or long term with minimal risk. You can even trade it on the dips and peaks.
- As you said yourself, TRP is safe as compared to Trans Alta. Having said this, would you not also say that TRP is at the top of the list in the minimal risk catagory. I am certain TRP and the Canadian banks are in the top 10 Canadian safe stocks.
- Lower liquidity? Yes your bank account will have your money for you on demand, with your TRP stock you can have your money in a few days or maybe a weeek.
- Ahh, Kevin O'leary. I totaly agree with you that he is loud and opinionated, but he is very inteligent and interesting as borish as he is.
- Canadian banks are as conservative as they come, but extremly safe. Not as fun as those Texas banks that will give you a Smith and Wesson .44 if you open an account with them.
_________________________________________________________________
Abstinent,
- $10,000 or $20,000, you are still in the same ball park. So I my opinion is not to diversify and stick with safe and sure. Which is Trans Canada Pipeline or a Canadian bank. Minimal risk, good upside, with a dividend 4.7% paid quarterly and you are taxed at a favorable rate. Thats my opinion, maybe Hinz has another suggestion?
_________________________________________________________________
Diane-35
- The difference between Enron and Trans Canada Pipe is that Enron was a paper company that had few real assets, and Trans Canada Pipeline has infrastructure and good long term prospects. TRP is as solid as they get.
When we are talking about $10,000 or $20,000 it makes no sense to diversify.
I can not think of a better stock to buy where have good upside, minimal risk and a sure dividend.
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I can not think of a better investment for a person that wants to invest $20,000 for the short term. If there is something better out there maybe Hinz can tell us. I will be ahppy to know it.
wWw.
Fuck that, who wants to go in knowing what they want to do and have to listen to pitches for useless insurance products? I had to listen to some bullshit when I was getting my bank visa card activated. What I like having is easy access to a bank machine to do any physical transactions and the rest online. I don't want to see ads for garbage.
Willie, you almost have sold on TRP and existance of such thing as safe stocks. The reason I am asking is I have about $200K in cash to invest. But the thought of catching a "black swan" frightens me. I also thought of diversification, but if you look at DJIA in the past 10 years, it has not advanced a bit. If you bought DJIA in Oct 2000, you would have lost 30% last March, and just breaking even now. Oh and DJ consists of only blue chip stocks - the kind of stocks all analysts think are safe, quality, and most are dividend paying... but still they are not immune to the market volatility. So there goes the idea of "long term" investing. If 10 years is not long term enough what is?
Diversification is not a bad thing if you have enough to diversify with. Having$20,000 is not the same as having $200,000. TRP is in the top 5% of the safest stocks. TRP is part of almost every big portfolio, and it should be part of yours as well if you have $200,000 to invest.
- Ask the experts, not some fool on TERB for investment advice.
- If a stock goes down it is part of the game, in the long run if it goes up you have not lost a thing.
- There is no stock that is immune to market volitility, if you want absolutly sure put your money in the bank for .5% interest.
Here is a question for you to ask investment advisors:
If you were to put all your $200,000. in TRP for 10 years and do nothing. What will happen if you allow all dividends to be re-invested. I think that they will all tell you the same thing. Go forth and multiply. ( YOUR MONEY )
No doubt about the TRP but I am not buying around $33, maybe $30 or less.
I would be interested in investing EXC or FPL in low-40s. Both are listed in NYSE. Used to own FPL shares years ago but cashed in the profits to invest in UST. Not necessarily a good strategy when you need to do the FX (CAD to USD) and not tax sheltered.
There is a conservative, boring bank based in Texa but I don't think you can get a consumer loan and checking accounts
http://www.bealbank.com/
BTW, Smith and Wesson stock, SWHC listed in Nasdaq may be attractive for speculation since it's a small cap. Product wise, I prefer Heckler & Koch (H&K) anyday to S&W or Rutger or Colt but H&K is privately controlled by German investors after the Royal Ordinance sold the company back to Germany.
Hinz,
Willy is giving good advice. Now quit your jabbering and get back in the kitchen and wash that pile of dishes from last night. The lunch crowd is starting to come in!
Read the book of the same name and listen to Nassim Taleb far too many times with all those gloom and doom theatrics, with Arabic accents no less.
Though most of what he says are dead on but sometimes you have to wonder whether he has a vested interest in mind. He advises a hedge fund called Universa that based on "Black Swan Protection Protocol". It's his interest to talk doom and stretch the truth regarding the market, spread fear and convince subtly the big money (8 to 9 figures of cash) to hand in money to Universa and get "annuity" in terms of (2/20) rule.
That's on top of big consultation fees charged on road shows, speaking engagement, better than being just a prof in Academia.
Oh BTW, he could be entitle to indexed pension too, assuming he contributed during the tenure and the pension plan in question is sound or grandfathered after he departed.
I think S&P 500 is what the media and pundit make reference regarding the loss of decade in long term investment when it comes to investment, not DJ 30 since the Dow 30 is not represtative to all sectors.
Moreover, there's no guarantee in life and what people do not mention or want the "investors", speculators for most to know is you do not have to buy and hold the index, doing nothing for a decade. The key is to take the profit along the way and rebalance to fixed income, term deposit/GIC and raise cash based on your age and needs annually. And that's in addition to keeping an eye on spending and stay invested.
Still, unless you were lucky to cash in everything and selling short everything other than buying long on US T-bills before Lehman collapsed last year, everybody lost money and you would lose less if you prepared adequately.
Willy is giving a good advice but like I said before don't take any advice for granted, including mine. Use true common sense and you have to do research and homework, just like some who do research here before paying a visit to a SP/MPA.
Oh, did I forget to mention I used to be TRP shareholder and lucky to cash in a decent capital gain in the past? Never a good idea to place a big bet by putting a big chunk of hard-earned money on a few stocks and put your faith/fall in love with the company, no matter how attractive the yield is.
BTW, how do you know I work in the kitchen?
Dreaming of better times.
WTF do you mean, how do you know I work in the kitchen? I hired you, stumblebum! Its not 1987, and your not on Yonge Street anymore! Get back to work!
Funny to know how you could "hire" me when I am not even here in 1987.
And there's no Younge street here either.
BTW, good luck to your TRP investment
LOL!!
BTW, speaking of drinking. You made a killing to invest big in Anheuser Busch stocks (BUD), and receive fat dividends while you waited, like Warren Buffett did before the Brazilians and the Belgians teamed up and be bigger suckers to takeover the Budweiser company.
so far i think gold was the best option...
Physical Gold is up big and so are the Gold miners(large caps).
Small Cap Golds still show a lot of value, and if you need a write off, you can buy into a small cap precious metals flow-through, so you make $10 000 right away in tax deductions and have exposure in a gold sector which hasn't truly taken off yet.
Physical Gold is up big and so are the Gold miners(large caps).
Small Cap Golds still show a lot of value, and if you need a write off, you can buy into a small cap precious metals flow-through, so you make $10 000 right away in tax deductions and have exposure in a gold sector which hasn't truly taken off yet.
Wow, pretty condescending with the 'unsophisticated' comment.
Diane 35 says a lot less but there's a lot more common sense and qualified opinion rather than your definitively stated pronouncements...
D.
