bonds are not low risk, sovereign debt is in a huge bubble. this is the conventional wisdom peddled by the mainstream its complete nonsense. canadian bonds are probably the best out of the developed world besides australia but inflation will wipe you out youre gonna get like 2.5% for 10 years
Investing Assets Held in a TFSA
- Thread starter johnnyone1
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I'd disagree, just printing money is not automatically good for gold. It's expectations.
Goodguy
Some junk bonds yield 20%. As long as you are very diversified (as there will be some defaults at those junk levels) some limited exposure to such high yield is not all bad. One of the easiest ways for the retail investor to get this (and diversification) is the SPDR Barclays Capital High Yield Bnd ETF (NYSEARCA:JNK). Just don't go overboard.
why would I do that when there are many extremely undervalued quality companies that have ten - 20 bagger written all over them, there are many but these 4 companies are going to make me a very rich man: allana potash, spanish mountain gold, victoria gold, wildcat silver.
Holy Mother of G.. Four penny stocks (AAA, SPA, VIT, WS) and all Canadian stock exchanges at that. I truly hope this does make you "a very rich man" as you suggest. That said, it is only you and other individual retail investors; large institutional traders (who can really move the market) are not allowed to trade anything under the 5 or 10 handle and for mostly good reasons. The irony of me suggesting some exposure to junk is not all bad hasn't escaped me but I sure hope you are not betting the farm on garbage (as opposed to junk).
I forgot to add earlier that the junk boned market is being distorted by the fed QE program bc ppl are desperate for yields.
And I am in agreement when we are talking about the overall bond market. Actually "junk" bonds shouldn't be considered to be bonds. In reality they are riskier fixed income vehicles with high yield (compared to any other type of fixed income product) and the risk of defaults can be well managed with diversification.
Most people (other than financial traders) look at bonds in a rather simplistic (savings bond) kind of way and don't understand the tremendous leverage and gains we can get from "trading" bonds. If I buy T-Bills and interest rates fall that day, I now have a position immensely more valuable than it was just yesterday. Similarly I can take a short bond futures position and make a ton of quick cash because interest rates raised marginally overnight, totally backwards from the way Joe the plumber would see it or could understand it
The bubble is that bonds increase in value (to a trader) when interest rates fall and while I would have said they can't go below zero, I'll be dammed if we haven't even seen that happen already. That's right, there are days when you are paying the US government to hold on to your money If you are desperate for yield, why not allocate a small slice of your portfolio to diversified junk?Wow...gold (Kinross and Barrick) and potash (Uralkali) all absolutely crushed in less than two weeks.
Are there bargains left in dividend stocks?
Good values these Canadian dividend stocks represent it is difficult
to predict what the impact of another round of yield surge of 10 year
U.S. treasuries is going to be like. .
---------------------------------------------------
Rob Carrick G&M
Tuesday, Aug 06, 2013
Everyone knows dividend stocks have been the story in the Canadian stock market in recent years, which means potential bargains are scarce.
They do exist, however. Take Newalta Corp., for example. It offers a yield of 3.1 per cent and nets a consensus “strong buy” recommendation from analysts. But year-to-date, it was down about 7.5 per cent compared to a gain of 1.5 per cent for the S&P/TSX composite index. Cenovus Energy was also rated a “strong buy” and offered a yield of 3.2 per cent. It’s year-to-date loss was 8.2 per cent.
These and other companies were found using a GlobeinvestorGold screen set to find TSX-listed common stocks that:
* were flat at best and down 20 per cent at worst for the year through late July
offered a dividend yield between 3 and 6 per cent
had a market capitalization of at least $500-million
were rated at least a consensus “buy”
Newalta and Cenovus were the two top-rated stocks among the 19 that made it through the screen. The other 17 were:
Pacific Rubiales Energy: Yield of 3.5 per cent; year-to-date decline of 15.5 per cent
Horizon North Logistics: Yield 3.8 per cent, price down 3.1 per cent
Telus Corp: Yield 4.3 per cent, price down 2.3 per cent
First Capital Realty: Yield 4.8 per cent, price down 7.9 per cent
Intact Financial: Yield 3 per cent, price down 9.3 per cent
Fortis Inc: Yield 3.8 per cent, price down 5 per cent
Rogers Communications: Yield 4.2 per cent, price down 7.2 per cent
Potash Corp: Yield 4.5 per cent, price down 19.3 per cent
TransCanada Corp: Yield 3.9 per cent, price down 0.2 per cent
Nevsun Resources: Yield 4.1 per cent, price down 18.2 per cent
Russel Metals: Yield 5.5 per cent, price down 7.4 per cent
Labrador Iron Ore: Yield 3.2 per cent, price down 7.7 per cent
Killam Properties: Yield 5.4 per cent, price down 13.5 per cent
Domtar Corp: Yield 3.2 per cent, price down 13.5 per cent
Evertz Technologies: Yield 3.9 per cent, price down 10.5 per cent
Capital Power: Yield 6 per cent, price down 7.4 per cent
Emera Inc: Yield 4.2 per cent, price down 4.4 per cent
Three stocks that would have made it through the screen if not for the fact that they were rated “hold” were Encana Corp., CIBC and Canaccord Financial.
Good values these Canadian dividend stocks represent it is difficult
to predict what the impact of another round of yield surge of 10 year
U.S. treasuries is going to be like. .
---------------------------------------------------
Rob Carrick G&M
Tuesday, Aug 06, 2013
Everyone knows dividend stocks have been the story in the Canadian stock market in recent years, which means potential bargains are scarce.
They do exist, however. Take Newalta Corp., for example. It offers a yield of 3.1 per cent and nets a consensus “strong buy” recommendation from analysts. But year-to-date, it was down about 7.5 per cent compared to a gain of 1.5 per cent for the S&P/TSX composite index. Cenovus Energy was also rated a “strong buy” and offered a yield of 3.2 per cent. It’s year-to-date loss was 8.2 per cent.
These and other companies were found using a GlobeinvestorGold screen set to find TSX-listed common stocks that:
* were flat at best and down 20 per cent at worst for the year through late July
offered a dividend yield between 3 and 6 per cent
had a market capitalization of at least $500-million
were rated at least a consensus “buy”
Newalta and Cenovus were the two top-rated stocks among the 19 that made it through the screen. The other 17 were:
Pacific Rubiales Energy: Yield of 3.5 per cent; year-to-date decline of 15.5 per cent
Horizon North Logistics: Yield 3.8 per cent, price down 3.1 per cent
Telus Corp: Yield 4.3 per cent, price down 2.3 per cent
First Capital Realty: Yield 4.8 per cent, price down 7.9 per cent
Intact Financial: Yield 3 per cent, price down 9.3 per cent
Fortis Inc: Yield 3.8 per cent, price down 5 per cent
Rogers Communications: Yield 4.2 per cent, price down 7.2 per cent
Potash Corp: Yield 4.5 per cent, price down 19.3 per cent
TransCanada Corp: Yield 3.9 per cent, price down 0.2 per cent
Nevsun Resources: Yield 4.1 per cent, price down 18.2 per cent
Russel Metals: Yield 5.5 per cent, price down 7.4 per cent
Labrador Iron Ore: Yield 3.2 per cent, price down 7.7 per cent
Killam Properties: Yield 5.4 per cent, price down 13.5 per cent
Domtar Corp: Yield 3.2 per cent, price down 13.5 per cent
Evertz Technologies: Yield 3.9 per cent, price down 10.5 per cent
Capital Power: Yield 6 per cent, price down 7.4 per cent
Emera Inc: Yield 4.2 per cent, price down 4.4 per cent
Three stocks that would have made it through the screen if not for the fact that they were rated “hold” were Encana Corp., CIBC and Canaccord Financial.
The US is still the biggest user of oil. With the huge increase in US production and the US consumer buying more energy efficient vehicles, demand in the US for oil will start to fall. Most of the big refiners in the states are now starting to refine more to diesel than to gasoline because demand for gas in the US has dropped off a cliff. Diesel is in high demand outside the US and the refiners are making more money exporting diesel than selling gas in the states.
