Investment interest north of 10%

[fall]

I recommend a Canadian index fund such as from Vanguard eg VCE. Returns over 7% and low risk in the long run. Also REITs such as car.un and kmp.un

In general, the lower the risk lowered the return, and vice versa. On one extreme are GICs and bondsWith extremely low risk and very little return. At the other extreme are stocks with high risk and volatility but high return.

Stocks are the only way to get over 10% return. But the risk is high.
There are many major companies that went completely brike such as AOL, BlackBerry, Nokia, and enRon, sears, Nortel, and many dotcom companies. Mutual funds are therefore your best bet to protect against complete losses.

Well, index funds, by design, is nothing else then a portfolio of stocks: they provide the same average return with lower risk then a single representative stock does. To get 10% expected return it is not enough to buy a stock, you must buy a high-risk stock (with high betas) or leverage your investment. I strongly advice against both of them, but if you really want to, borrow against you house and buy ETFs.

 

[jeff2]

Keep in mind that the Shiller PE is at nosebleed levels. It is usually applied to the S & P 500 but you can dig deeper and look into other markets besides the U.S. It does not tell you anything about the short term. You can read on the internet about the pros and cons of the Shiller PE. You could also look at Buffet's preferred measure of the ratio of total US stock market valuation to GDP.

 

[fall]

Keep in mind that the Shiller PE is at nosebleed levels. It is usually applied to the S & P 500 but you can dig deeper and look into other markets besides the U.S. It does not tell you anything about the short term. You can read on the internet about the pros and cons of the Shiller PE. You could also look at Buffet's preferred measure of the ratio of total US stock market valuation to GDP.

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While P/E ratio may be useful when comparing similar companies at the same point in time, it is very sensitive to interest rates. When interest rates are low (and expected to be low for some time) it is natural for P/E to be high (since the fundamental stock price is nothing else but the present value of the stream of expected dividends). An unexpected increase in REAL interest rate will lead to the price decrease, but, since the real interest rate is approximately equal the nominal interest rate minus inflation, I doubt it will go up even if the CB decided to increase the nominal interest rate.

 

[great_times2]

I'd suggest HDIV - Decent Canadian index fund that is already balanced, cover call strategy and 8.5% dividend hdiv Gold, Energy, utilities, Bank, Healthcare, tech and income all from one etf....

 

[Cheeta]

LIF is great div stock to buy . Currently there are Iron Ore over supply so it may impact future div. Even at 50% reduction you looking at 13%