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Saturday, November 3, 2012

I am going to invest again someday. Later.

Despite the Sandy Hurricane, the stock market went up for a couple of days. At a point, my non registered portfolio even exceeds the so wanted 125k! Completely exhausted, I wasn’t able to publish an update of the overall portfolio. I taught that this was going to continue until Friday, so I didn’t really push it. My last portfolio update was done... in August! Oh my! Anyway, I was wrong.

This past Friday, the TSX lost more than 100 points. Too bad. I really miss my chance to publish a very awesome update. I was quite disappointed when I saw the TSX falling like that. These days, we have some real problem to have just a couple of days of positive in the TSX territory. It’s getting harder and harder and the harder it get; it became really important to pick the right stocks for a super-super volatile market.

The stock market is not the best place to be. If I would be a millionaire, I would be investing only 30% of my fortune, not even more. It’s too hard.

The next best thing

I have a real thing for Black Diamond Group Limited (BDI). It seems to me that this one is a typical Western Canada company: very rich and very successful and I don’t feel any danger in investing a 1k or around of my very own pure money.

Did you saw my pictures in the last post? Quite hilarious! Ahah! I love hunting. Poor little bird.

This hilarious babe has some real debt to take care ok. I have paid my $1 700 BMO MasterCard, but I don’t have any money left to invest and I even have to take a bit on my broker margin account to pay it all completely. But the overall numbers look ok. Its just I won’t be able to invest for the next 3 months.

My non registered portfolio is at a good $124 496.23 (I taught I was going to close at 123k Friday!)
I have used $51 955.83 on my margin account.
I have left $16 991.79 on the same margin.

I received $705.84 in dividend this month. Great, but I need more more more!

I am trying to keep my margin at not more than 50k to keep it safe. At more than 51k, I am a bit too high. However, I will be able to get it back down to 50k by the middle of December. However, I have another problem on the way...

Remember I had the rate of 0.99% on my American Express? Well, that’s going to end somewhere on December 7 or so. And how much have I ranked it up? I have a balance of $2 462.04 on my American Express that I need to pay by December 7. After that date, the interest rate will be of something like 20%. Pretty scary!

By the end of December, my margin will be down to 50k. I will have to use a little bit more than 1k on my TD credit line at 8.75%. I will try to paid it as quickly as possible. However, December is the month of Christmas and in my world, that’s an expensive month.

I have proceed this week with a credit card balance transfer of $7 500 at 2.99% with TD Visa. I have a limit of 8k on it. Which mean I have left like $500 on it. And guess what! TD Visa is offering me a credit card balance transfer of not 2.99%, but 1.99% on the remaining $500 left!

Isn’t amazing?

Really soon, that TD Visa of mine is going to be FULL.

TD Bank must really love me.

You now know why I am not going to invest anytime soon. I have a new 6k in my TD Waterhouse RRSP. That money came from RBC. That was my response to their increased of 3% of my RBC credit line. Now, I have a 6k that is waiting to be invested. I taught of maybe some stocks of TD, but I really don’t have anything in mind, if not that Saskatchewan mutual fund that Derek Foster talked about in his latest book.

Not having Derek Foster fully invested in Canadian dollars is not the best because I now have less inspiration. I want the same thing that he hold, but it has to be Canadian baby. And I am disappointed by Jean-François Tardif who decided he was going to play low motion.

Anyway, the stock market really really suck. Getting a break until January 2013 doesn’t disappoint me. I have enough of stocks to follow, trust me on that one. And I also a bit of freelance coming in. Eventually, I am thinking of searching for other contracts, but I am missing the energy and the time. An individual cannot do it all, follow a 50+ stocks company portfolio, work full time, entertain a blog and doing a bit of freelance on the side. I mean at a point, the bitch have to be a wonderwoman. And I am a f wonderwoman. I am the best bitch of the universe ahah. Did I scare you?

I am going to the movie again. I want to see Cloud Atlas.


Anonymous said...

You have a bit of debt that you need to deal with before taking on further risk. Good call on attacking that first. Especially credit card debt. Foster would tell you to take care of that before anything else.

Also, when you say that you made $700 a month in dividends does that include the margin interest that you pay? What is your gross amount of dividends per month, that is after interest being paid? I'm curious.


Anonymous said...

Murderer of poor defenseless animals!

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Anonymous said...

dividends include margin interest? Better yet.. lets include the stock equity itself. making 22 dollars and loosing 100's on the stock price e.g. ATP isn't a good return overall.

Anonymous said...

Sunny: is the "Derek Foster fund" the Sask. Pension Fund. If so, its basically a fixed income annuity. This may be good for you as you don't have a company pension plan & you appear to jump from job to job. It also might be good idea for contract employees/self employed in lieu of a company pension. It will pay out consistently a set amount when you turn on the tap to retire. You can transfer in RRSP money. Tho, it won't have the beneficiary protection of a seg. fund. Cheers! Anony-pens 'n pencils

Sunny said...

Hunting is not murder.
How do you things people were living back in the days? It was from hunting. And today hunting is a sport.

I must said however that I find the dead perdrix picture absolutely hilarious.

But be assure, the bird die in one shoot and did not suffer. My dad is a good hunter.

Sunny said...

As for the debt, well its all exposed in the debt section on the top.

Most of my debt give me a tax credit: margin debt, and all other investment debt at the exception of the RRSP loan and my debt on my American Express.

If I have to chose between a 100k portfolio + or being debt free, I prefer the first option. I like to play my money on the stock market, I like it hard.

roman said...

Bought BDI for 23.5 today sold 19.5 never made money on stocks market. Get a life.

Sunny said...

BDI is a good pick. NOW is a good time to buy some shares. The stock has a great history, going to go up again later on. you have to be patient with the stock market.

When I first invested in my first stock right before the stock market crash, I bought shares of SII at 10$. Following the crash, it went down to less than 5$ per share. But I wait, enjoy the dividend and special dividend and later on, the stock went back to 10$. Its now down again to less than 5$.

Lesson learn: patience pay. Hold in what you believe. If you are not having a crush on BDI, don't invest in the company. You need love to be able to hold in difficult time.

What matter at the end is the stock attitude. Its if you'll have what it take to endure the market super volatility. From that comment, I can say that you don't have what it take. Don't expect the market to turn in your favor right away just like that. You need to play the game and you have a long way to go.

Anonymous said...

I would like to follow up with my own advice:
1) Know what you're investing in
2) Don't count on one investment strategy/theme to work all the time
3) Invest only $$$ that you don't need in 5 yrs.



Ruth said...

did u eat the bird or just killed it for the joy . i hope not. i hate the trapping too...if people knew how the animals suffer with that , they would never wear furs..which look better on the animals. Sunny, i think the markets are for traders these days...where is buy and hold now?

Anonymous said...

It's not an attitude buying a stock and hold it forever. If you play in a market game, the best is to do trend following; the second is TRY to do trend following. Every stock has its own cycle in ups and downs, that means you need to learn how to catch the waves and make money. I am 100% sure to say that, See the whole market picture and try to catch it.

@ Roman, in my opinion, you are very smart to cut the loss. You can see BDI basic chart, if it falls below $19, then will down to 18 or lower. this stock try to hit new lows (but where is it? don't know). Most possible you can buy back at a lower cost if you like. 20% loss is not difficult to earn back but need to keep capital first. So why I said you made a right choice.

Dare to earn big money and dare to lose money is a theory of playing market game.


Anonymous said...

TW: "Fortune is directing our affairs even better than we could have can see over there, Sancho Panza, a place where stand thirty or so more monstorous giants with whom I entend to fight a battle and whose lives I intend to take; and with the booty we shall begin to prosper.." Don Quixote. Don't even try to go with technical analysis here. Anony-wooden-shoes


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