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Tuesday, November 15, 2011

Show me your money, I will show you mine

What look at first be a bad market day turns out to be quite a good day after all. My now famous all over the world non-registered portfolio closed today session at a fantastic 110 240.17$. At this point, if my non-registered portfolio can exceed the 110k, I will be just pleased with that.

I had invested every single pennies I own just to be on top of everything and right now, I am on top of world. Or kind of.

In just 2 days, I will be investing again! So far, I am pretty set to move into the grove of Enbridge (ENB). For the past couple months, I had been quite careful with my stock picks. I had been quite of an adventurous investor. It’s difficult to focus on blue chips because in the immediate, the dividend is boring and the stocks not very exciting BUT reward could come later.

I can easily see myself hitting the 200k by the end of 2012 if 2012 turn out to be better than 2011.

I am no longer in front of my laptop during daytime so I need an extra reliable portfolio that I don’t have to worry about. So hitting the jackpot by buying extra boring blue chips is what I am doing at this time. But believe it or not, it haven’t been this great since I got a taste of hell in August 2011. A taste of a completely retarded stock crash. Some will have to pay for that and it’s not going to be me. Like Ffffffff offffffffffff. It’s simply not going to happen the way it was meant to be. So be ready! :)


Anonymous said...

I bought gold at 800$/oz and silver at 14$/oz.
I'm not worried about crashes.

Ruth said...

Sunny, wonder if one should add to matter what the stock market is like, it is steady and a wonderful capital gainer besides a terrific dividend..i added at $2400 and am glad i did. i think this could be a $40 stock by next year..what do you think....i have enbridge too...if one invested in the 1950's...u were too averaged 13%...amazing.

Sunny said...

Good for you if the volatility of the market doesn't scare you, but gold and silver can be quite sensible to the economic situation, especially silver. I personally think it's even better to invest in high quality blue chips rather than gold and silver, but that's because I already own silver and gold in my portfolio.

Hello Ruth!!

Hope you are doing well. Investing in PPL had been my best investment mover ever.

I first invested in PPL when the stock was an income trust.. at 12$.

PPL at 40$, not anytime soon. See, PPL is on a constant grow. So the way it's been so far, the stock is always growing.

I never regret my move in PPL, I actually made a small fortune on it. Same thing with ENF and a few other.

So yeah, PPL, go ahead without a doubt.

Anonymous said...

Ruth, when something is up like PPL, you're suppose to sell some and take some profit, not buy more. PPL is trading at 27x earnings which is not cheap. When market starts improving and interest rates start going back up, these safe stocks will feel pressure and more than likely trade lower. | wouldn't add anymore at this time, but feel free to keep your position if you want. If you want to add a pipeline, you might want to look at TRP which is only trading at 18x earnings mostly because of it's political problem with the Keysone pipeline.

As for the posters that say he bought gold at 800 and silver at 14$, don't expect to have too many people to believe you. If you would've bought at these prices, you would've taken profit like any smart investor does, including Sprott.

Ruth said...

Anonymous, i have 500 shares of pembina and 200 in tsa...but i have the feeling it is going higher , if i take shares out, how can i get back in at a decent price? i wouldn't mind selling one share..could use the money. i bought inter pipeline fund..what do you think about that one. sunny...glad u bought enbridge..i was lucky enough to get in at $32.21...great fund.

Ruth said...

when i look back at some of the stocks and realize that buying when the snow flies and selling it when it goes seems to hold true..if i had sold pengrowth and just energy...i would be way up and only have rim and manulife to deal with. maybe your right anonymous..take some profit...but love the hold on Pembina.

Anonymous said...

I believe a lot of the defensive stocks are trading pretty high right now, because everyone is scared of the Europe debt. TRP has been trailing because of the Keystone pipeline, but was up a 2% friday. You can sell ppl and it can go up some more, but I believe you'l be able to get in lower, if not in the next few months, eventually as I believe it's trading too high. You can also keep some cash and buy a beaten down stock in the next few months. I can't tell you which one to buy as you can buy another stock, it can go down while PPL keeps going higher. But don't forget it's trading at 27x earnings which is pretty high. Myself, I don't like to hold stocks that trade over 20x, so as you can see, I would've sold PPL a while ago.

Ruth said...

Anonymous..many say take a profit but why wouldn't one keep a stock as pembina if it can rough it through tough times and sell it when it starts to bubble. my problem is holding on to some weaker stocks to break even instead of finding a better is knowing when to get OUT.

Anonymous said...

Ruth, the key is diversification. If you have 60k in stocks and 40k in bonds. Let's say your stocks are down 10% to 54k and your bonds are up 5% to 42k for a total of 96k, you should rebalance to keep your 60% stock, 40% bonds ratio that you began with. That means you sell some 3,600 of bonds to buy stocks. By doing this, you're selling high and buying low. The same is for defensive stocks, if you sell now, you're selling high. If you buy now, you're buying high.

I didn't say you had to sell it right now, but I wouldn't buy anymore right now also. If you can tell when it starts to bubble, good for you, cause I can't. I feel it's already trading at a high p/e. That doesn't mean it won't go higher as lots of people are scared right now, but when things to change around and investors go for riskier stocks, I wouldn't be surprise to see Pembina trade lower. I would rather buy a stock like TD or BNS that have been beaten down lately.

If you would've bought BNS last year at 60$ or TD at 84$ when they where doing great like PPL is doing right now, you would've bought at their high and you would be down some 20%. Unfortunaly, no one can guarantee that the bank stocks won't go down some more, but I like to put the chances on my side by buying a good quality stock at a lower P/E rather than buying a good quality stock at a higher P/E.

Sunny said...

I feel your giving Ruth a good advice but it make me think of me trying to time the market.

I wouldn't rush into financial stocks even if they trade low. I would prefer stock some stock who had show a growth potential no matter what how bad the economy is. Stuff like that famous PPL, CNR, TRP. The very top conservative, cash protective stock.

But there's risk anyway. Nothing is safe out there. As soon your being investing in stock or bond, your money is at risk. Even blue chips can experiment some capital loss.

Is it a good time to invest now? Well, I am tempt to say yes, but only if you are very comfortable with the idea that you could experiment overnight a 20% to 30% capital loss. It's a sad thing because there's no more security in stock. Everything getting sensible to what's going on.

It's really not easy.

I am getting to a point where I had personally invested in about almost everything I ever wanted in my portfolio. And I am slowly going to point where I think that paying off on my credit line will be as much beneficial than investing, and if not even more.

I don't plan to get rid of my stocks but the market is so difficult that at a point, I need to secure myself more and get cash aside.

And truly, picking up some stocks is becoming harder and harder. It's a headache. I have enough in my portfolio, I am very proud of it, but now, the excitement is gone, fear is there.

Anonymous said...

Sunny, it's hard to compare your situation as you're invested 100% in stock, plus using margins. So obviously you might feel lots of volatility. Fear is there because you're overly invested in stocks and stand losing money that's not yours. Let's not forget that you're 100% invested in Canada also. Even if you didn't have any margin, I still believe you're over invested in stocks.

If Ruth has fixed income like bonds, and defensive stocks like BCE, PPL, and also more cyclical stocks like JE, PGF, all I'm saying is keeping that same ratio has her taking profits on winners and buying more losers.
If next year or the year after is a good year for cyclical stocks and you're all invested in defensive stocks and bonds because you where afraid now, your performance would be just as bad as it is this year being invested all in stocks.

As far as picking stocks is concern, like you said, you go by readers suggestions and your guts feeling and I suppose if you're lucky, 50% of the time you or your readers suggestion was right and the other 50% of the time not so good.

As you start seeing your capital increase, you might want to start wanting to protect it instead of trying to double it. Like the ad says, if you want to stop picking losing stocks, stop picking stocks. Take a look at the Mawer Canadian Balanced RSP fund, it is well diversified between countries, well managed, MER of only 1% and down not even 1% this year. In 2008 it was down 16% while most where down 30% and more. These guys manage money for big pensions and their priorities are protecting your capital while achieving long term capital appreciation.

Ruth Anne Kruuv said...

thanks Anonymous and Sunny, love the advice and agree with the banks..TD in particular but it still is an expensive stock , i dislike losing capital as then the dividends really are being paid by you. pembina toughs it out when the stock market is down..shall hold til it goes to a certain point which i should have done with pengrowth and just energy..........,,,,i would be up quite a bit, oh manulife and rim...what was i thinking?

Anonymous said...

As investors, you need to be able to do the opposite of what your emotions tells you to do. When your where buying Encana, Just Energy, bank stocks and the likes a year when these stocks where doing good, you should've been buying more defensive stock. Today defensive stocks are in flavour and you feel like buying more. I believe you have to do the opposite and buy more cyclical stocks. Yes they might go down another 10% or more, but longer term, you'll do alright and will be collecting a nice dividend.
Remember the key is to keep your asset allocation.

Ruth said...

HI Anonymous and all your advice. watched a fellow on market place and he has all his money in GIC......i wonder where he would sit against the stock are right, my enbridge, BCE, and pembina are good stocks..bell aliant , good but have to watch. i have my house that i sold in a 5 and a half percent for 5 years..i will never put that money in a stock no matter what.


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