In the darkness, there’s still hope... I think the past 2 days have been an illustration of that. Holding was the right thing to do. What wasn’t right to do however, according to Derek Foster, was to borrow to invest. Yesterday, the TSX gains point like crazy and Derek Foster has the very good idea to come with a brand new newsletter and I was happy of those 2 combination that I wrote Derek Foster a little email to say hello (because I never did before) and to say that the stuff was working well for me. I also told him I had a margin and that oh, unfortunately I had borrowed to invest. And he’s the answer I got from the master (not to say MONSTER lol...):
“Margin borrowing and other credit scares me...you might consider paying down you debt for increased safety...just my thinking...derek”
I thank him kindly of his answer, of course.
If I expose his answer here it’s just to show that you know, with Derek Foster, you’ll get the best investment ideas and the best advices. My margin and debt situation are not the safest heaven that’s true and I should definitively start to slow down and pay off my debt.
I think this show the willingness of Derek Foster to teach how to build health, but from our own hard worked money and that’s very good and I totally agree. I am not in great danger at this time, but the TSX could loss more points. Remember that guy that say the TSX could go lower and reached the 9 000 points? Well, it could happen, everything is possible.
But my problem being I don’t think we’ll be hitting on the 9 000 points anytime soon. I think things will get better. The Fed, governments, everyone out there will do whatever can be done to save us from a recession and I truly believe will go through this.
But once again, my debt situation is not healthy. I understand the risk associate to it.
At this time, the market is full of possibilities. This is my time to invest in TransCana Corporation (TRP) like I wanted for quite a long time now. This is my time. Ok, I know, the amount invested is just 1 000$, but I am getting overexcited here and if I don’t invest in TRP tomorrow, I will be very sad.
That my debt and margin account turn into a complete nightmare – I have doubt about that. However, Derek Foster is right, I should pay off my debt. It’s a good real advice for the little bummer that I am. Imagine the girl, working at night to follow the stock market during day time, this absolutely BUMMER super sexy.
Thank you Derek Foster, thank you very much :0)
Ok, this being said, EnerCare Inc. (ECI) is making a HUGE come back!!!! Back in the days, when ECI was trading under a different, ECI was a Derek Foster stock. ECI was well ranked by the one and only Jean-François Tardif. Back in the days, ECI was hot. And after, Dividend Ninja came and said ECI was holding too much debt. Anyhow, do I really know any of it? No.
BUT... I decided to sell my ECI stocks in order to invest in the Sprott Physical Silver Trust UTS (PHS.U). See, at the time, it was the silver mania. Silver was hot and Eric Sprott as well. I made money out of silver, and my PHS.U still continue to perform well, even following the silver crash. The only problem being that PHS.U grow in value, but pay 0$ in dividend. However, I do not regret my move. Holding and trading PHS.U had been quite fun. At least so far. At this time, I do not trade actively silver. I am sticking and holding PHS.U inside my TFSA.
This being said, I may consider buying back some EnerCare Inc. (ECI) stocks back again. Why? Because it’s a stock I know, Jean-François Tardif grades this stock well (long time ago but still) and the experts at TD like the stock.
For the next couple of months, I want to add some stocks CNR and ECI to my portfolio. At more than 8% in dividend yield, ECI is HOT. And CNR? Well, watch it grow, if not explode in value in the next couple of months. It’s going to be FANTASTIC. Check it out in here.
So there’s absolutely no way I am about to pay off debt any time soon but I am aware the advice is good and coming from a big heart.
My non-registered portfolio is now at 105 910.18$ and tomorrow, I will boost the TSX of one more 1 000$.
Posts
6 comments:
Awww Sunny - I'm sorry to hear you don't like me. I actually quite like you but if you don't want me posting on your blog anymore, I will certainly not do so. Ahhh Derek Foster - why don't you tell your readers the true story of this guy. The toronto Star actually wrote about this guy - here is the link...http://www.thestar.com/Business/article/600754
Yes the Derek Foster who retired at 34, lost a fortune in 2008 and then sold almost at the very market bottom in 2009. Good luck following this guy. So he came out of retirement to give people more bad advice with a newsletter. Wonderful (note sarcasm). What Derek Foster doesn't understand back then and probably didn't understand right now is the Fed statement that came out recently. As I told you in a previous post, the stock market would stop falling because the Fed would unleash QE3. And that is exactly what happened in so many words. Their exact statement was "We will keep interest rates low for the next two years" But the only way to do that is to print money (or the electronic equivalent) because no one will buy treasury's yielding next to nothing. This will aritifically prop up the stock market, is extremely bullish for gold and silver and will prevent the housing collapse I have been warning about temporarily. We are still in an ongoing depression and the stock market will wallow between 10,000 and 15,000 for the foreseeable future. It is all artificial though - we have just postponed the big crash to come. As always good luck with your portfolio. I think you'll need it.
I'll actually add a second post here as this is very important and it will prove my allegations of criminal intent in the precious metals markets. The CME group announced margin hikes of 22% in the gold futures market. I suspect that overnight there will be huge naked short selling for a takedown in gold like they did on silver on May 1. So lets see if I'm right. Remember this post is being written before it actually happens.
I read the article that I read way back... And it was interesting, to relive the flashback... Derek Foster selling his stocks. Oh my God! OH MY GOD! NOOOO lol... but yeah, interesting.
Read carefully the article. Derek said that the recession was going to be longer than anticipated etc etc etc. Well, seem to me that he was right all the way wasn't he?
I had borrowed a lot from Derek Foster picks and all of them had performed very well. That being CDL.A, ENF, PPL.
A reader once wrote me something of the like if Derek Foster picks in Stop Working, Lazy Investor were still accurate for today market. Well, the answer being yes, PPL, ENF etc being among my top performers, still good for today market. By the way he picks his stocks, the picks remains good for a long term holding.
I mean, I can only pay respect to what his books bring to me.
Maybe selling in 2008 was a good idea after all. Maybe I should have do the same and stay away from the market. Because as you are saying, I will need luck with my portfolio right?
Its not exactly that I don't like you, I don't like your sarcasm, I don't like the know it all attitude. But maybe that's because your divorce. Could that be it? What do you think.
As for your second post, well, Carrick for the Globe and Mail had wrote in an article not to only invest in gold, silver because a turnaround was possible. It goes high high high and than plouff the balloon exploded. Doesn't take a genius to get that. Rob Carrick is the proof of that. .. lol... :0)
See, I am being like you, very sarcastic and you are making me doubt now of the stock market, I don't know anymore if I will investing in TRP tomorrow. LOST IN HELL. I am lost in hell.
Hi Sunny/Rob,
If we look back at history, back to similar situation, whether it be the depressions of the 1930's or the stagflation of the 70's we see that the primary increases in wealth were from dividends. I'm not expecting a recovery for about 35 more years(i have time to wait(I'm 32 by the way). What we see from history is this:
The stock market has hit highs in 1929, 1966, 1999. Even when stocks were stagnant, dividend paying stocks who increased their dividends once every couple of years did very,very well over a period of 20-30 years.
Something to think about: IS gold money?
Rob-You are correct about QE. The Fed is goosing up the stock market..trying to create the 'wealth effect' while the 'poor' middle class who has the majority of his/her assets in real estate(housing/condos)is no better off.
Sunny-thanks keeping your blog,really enjoy reading it
Mark
This is what I was actually referring to regarding another Rob, Rob Carrick about gold in one of his article:
"Don’t: Chase the investments that have been doing well while share prices plunge. Gold has risen because it’s seen as a hedge against uncertainty, but if the global financial system settles down you could see gold prices move lower. As for bonds, they always rise when stocks fall. Problem is, a surge in the bond market means bond yields are falling (prices and yields move in opposite directions). Government of Canada bonds maturing in five to 10 years will likely generate yields of less than 2 per cent if you buy them from a broker. Over a five- or 10-year period, stocks should beat that return by a good margin."
http://www.theglobeandmail.com/globe-investor/personal-finance/rob-carrick/some-dos-and-donts-for-investors-in-this-market/article2122570/
Thanks Mark.
Post a Comment