Posts Tagged ‘Investment’

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Stay Invested with the Index

February 26th, 2010

S&P

We just read a news from The Globe And Mail about performance of Canadian equity funds. Many actively managed mutual funds in Canada cannot beat the index, i.e. S&P/TSX composite index. Here is the result:

  • Year 2009: 39.2% of actively managed funds beat the index
  • Over 3 years: 12.5% of actively managed funds beat the index
  • Over 5 years: 7.7% of actively managed funds beat the index

That’s why; we recommend to invest in the index. As you can also see from our portfolio, most of our money is currently parked in the index as well. Only small amount of money that is used for speculation, including stock picking and timing the market. That’s why; we still have stock picks and participate in the Canadian blogger’s stock picks contest.

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Favourite High Income Recommendations

February 15th, 2010

Dr. Mark Skousen, the editor of Forecasts & Strategies, has recommended seven high-income stocks/funds at the World MoneyShow Orlando 2010. You have to register to the web site to watch the video. However, you can download his full presentation in PDF format from this link (without registering).

All of these stocks/funds pay very high dividend, from as low as 6% to as high as 17%. Why high-paying dividend equities? Many analysts believe that we’ll be in a range-bound market for quite a while; some of them are even expecting double-dip recession. In this kind of situation, we can’t expect much from capital gain. That’s why; high-paying dividend equities are preferable.

Note that the recommendations above are from Mark Skousen. They are not from us although we agree that we need high-paying dividend equities in the current market. As always, we recommend you to consult your financial advisors before making any investment decision.

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Are We Stock Picker?

February 14th, 2010

investing_1

If you’ve been reading a couple of our last postings; you might be wondering: are we stock picker? We’ve been talking about stock picks, see here, here and here. In fact, we have never talked about ETF or mutual funds.

The answer to this question is: yes and no. We have a diversified portfolio; a large amount of them are invested, surprisingly, in ETFs and index mutual funds. We allocated only about 10% are invested in individual stocks. We’ll discuss more about our assets allocation in future posting. :)

Why don’t we just invest in index funds and do nothing? Isn’t investing in individual stocks very risky? There are a couple of reasons. One reason is because we want to find ten-bagger. We don’t normally find ten-bagger in index funds, do we? Another reason is because we want to improve our investment skills. We’re still beginner in the investment world; there are a lot of things we need to learn. That’s why; we don’t want to risk too much capital in individual stocks (for now).

(Picture is from stock.xchng.)

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