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Wednesday, March 11, 2020

The TSX is losing major points. Again

As you may have noticed, the TSX is super volatile these days. Yesterday had closed on a positive gain, but today, the TSX goes deeper into the red zone and closed on a poor 14 270 points, leaving me with a tiny little $97,632.43 non-registered portfolio. On my non-registered portfolio, I have a margin debt of $47,247.72. Currently, I have left available $20,825.11 on my margin. I guess I may have not discussed this really precisely, but I have available $30 000 on my credit lines. I won't hesitate to use that money to save my margin situation, if it happens that I have too. One thing that you need to remember is that there is no hopeless situation when it comes to finances, there's always a solution. Also, I have a 2k in savings, which I could push over my margin if needed. 

Like for example, if tomorrow the TSX continues its bad road, I will transfer some cash to cover my ass. Currently, I have direct access to $17 000, and I may have to do a quick run to access a $5 000 more but even a $15 000 should be enough if the TSX continues to lose major points again tomorrow. It's not a fun situation of course, but I always prepared for the worst and I never had any problems managing my margin account situation in the past. And there's just no sacrifice that I am not willing to make to have this work up so go alone TSX bitch and go as low as you want.

In case you are wondering, my TFSA portfolio closed today session at $77,297.00 and my RRSP portfolio, stocks only, closed at $43,864.08. It's all really bad so if you don't mind, please, I won't even try to calculate what my net worth is at this time. I remain confident that this pandemic will be under control soon enough. I don't want to believe that things are going to be like this for the next couple of months. Italy is doing more than its part. In Canada, no serious check is being done for foreigners coming into the country. This is not surprising. Justin Trudeau being such a jerk. In difficult times, we need a real good strong leadership, not a little boy taking no action at all, like usual. Canda doesn't have what it take to face a pandemic. With Trudeau, we are almost at the same level as a third world country. It could be a good idea to quickly build up a reserve of non-perishable food on the side because don't ever think that our government will come to your rescue if needed. Personally, I really like tuna that comes in olive oil mix with pasta, so I guess I can survive. I don't mind a can of ravioli from time to time, beans, etc. Another favorite of mine: smoked mussels :-) It may sound too much, but I would recommend having a good 3 to 4 weeks supply, and if you can have more, that's even better. Also, I would recommend the purchase of a thermometer - it's something I don't have myself but that I need to buy. With such pandemic, you may feel sick at a point, and if you do, take your temperature. I only had a fever once in my adult life and it felt so strange, I had just no idea what I had. I was shaking from the fever and felt so cold, it was absolutely horrible.

This pandemic won't remain forever, but in the meantime, we have to deal with it. Those days are hard, but I have at least one good news: stocks are cheap. A few good options: FTS, RY, and BCE. If the markets remain low, I will definitively buy some stocks from time to time. I am not tempted at all by the oil and gas sectors, my best advice would be to avoid those sectors. You can't certainly go wrong with FTS, on which I post previously about. Right now, I am tempted by some more BCE stocks.

Yes, my net worth is less lower now, but I had been investing in stocks for something like 12 years now. Over time, I always worked hard to find the best quality stocks to invest in. My results are lower, but my lovely babies, my dogs, are pushing so hard to keep me alive and well. Right now, in my non-registered and TFSA portfolio, I have many stocks that are still in the green zone, here are among the best performers at this time:

Canadian National Railway Co (CNR): + 167.42% 
Loblaw Companies (L): +82.50%
Fortis Inc. (FTS): +89.99%
K-Bro Linen Inc. (KBL): +98.53%
New Flyer Industries Inc. (NFI): +115.22%
TMX Group Inc. (X): +157.66%
Brookfield Infrastructure Partners L.P. (BIP.UN): +93.95%
Canadian Apartment Properties Real Estate Investment Trust (CAR.UN): +84.90%
Morneau Shepell Inc. (MSI): +75.14%
BEP.UN: +64.90%
Park Lawn Corporation (PLC): +61.39%
WSP Global Inc. (WSP): +53.17% 
Emera Incorporated (EMA): +49.13%
Enbridge Inc. (ENB): +49.13%
Methanex Corporation (MX): +48.61%
CT Real Estate Investment Trust (CRT.UN): +46.75%
Toromont Industries Ltd (TIH): +34.94%
Saputo Inc. (SAP): +33.88%
BCE Inc. (BCE): +30.75%
Calian Group Ltd. (CGY): +37.58%
iShares S&P/TSX Capped REIT Index (XRE): +28.98%
Pembina Pipeline Corporation (PPL): +24.07%
Boralex Inc. Class A Shares (BLX): +16.57%
Canadian Utilities Limited (CU): +15.57%
Cargojet Inc. (CJT): +16.57%
Northland Power Inc. (NPI): +23.79%

I am quite surprised to have my Cargojet Inc. (CJT) in the +16.57%, because normally, that stock is super volatile. It's quite a good surprise.


Anonymous said...

Bad times for those who use margin and credit to buy stocks (such as yourself). Luckily, I'm smart and have never done that, and am willing to sit, wait and ride it out no problem. There's some areas that are entering into great buying opportunities, which I'm excited about. But, it will drop further yet before I pull the trigger and clean up, from others mistakes.

Anonymous said...

Hard to be patient in these trying times. I am curious as to what stocks others are looking at.

David Christ said...

The money that was created out of thin air by the banking institutions in the past decades helped inflate various asset prices (stocks and real estate) everywhere in the world is now causing asset prices to deflate faster than a hot air balloon, because of the false monetary system. The money that was created without any intrinsic value, no basis of economic support that was lent out to people like yourself helped monetized this money into its intrinsic value based on the people's labor. Which meant, the interest you are paying helps the bankers make money off you PLUS helping them make even more money by "shorting" the stocks thus making even better spreads. A double or triple whammy and what a great deal to the bankers and people like Trump making money and more of that out of many suckers out there that use margin and credit to buy stocks. The wild swings were to be expected where people had now been addicted to using credit or margin to buy stocks as though it is the norm. It is NOT. Next thing that will happen, if it weren't already planned is a margin call when stocks fall lower. After all, banks can call back the loans, forced the sale of your stocks, drive stock prices even lower and make even more money on the spreads. Do not forget that the bankers are not your friend, though they will sound like they are in good times. Please keep this Covid-19 in perspective. It is a disease that you can recover from if you are healthy without any pre-disposed illness or stress, so people can recover and this, like SARS or MERS, will eventually be overcome with new medical advancements. Beating this virus requires the cooperation of all world leaders and the scientific minds to beat this disease. Right now, the virus THRIVES on DIVISION and as you can see that countries are dividing themselves by closing their borders. While this may slow down and buy sometime, it will not kill the virus just like what we have with the common flu or cold. What needs to be done is a concerted and united cooperation between nations to develop better testing kits and an eventual vaccine and cure to the disease. Unless we see this, I will be sitting on the sidelines and wait for my cash to be developed. For those on credit or with a margin, I highly suggest that all of you start paying down on those margin as quickly as you can. I was the one who had a margin account in the late 90s during the dot com bubble and got the margin call when the dot com bubble busted. TD Bank told me they wouldn't such a thing; but then it is a BANK and BANK did what a bank had to do, recover their loans and so I was decimated financially at that time. I learned my lessons and no longer trust any bank. It's not to say I won't invest in a bank, but that's how they make money. Give you a loan, promise you that they won't recall and then when crap hits the fan, they panic and recall the loan they created out of thin air. How nice..

lgalico said...

She is smart to, how arrogant of yourself stating that she is not smart just because she is using a margin account. Maybe she doesn't have a high salary or life has been harder than yours.
You are smart Dividend girl, we will get out of this... as you said in one of your posts "unscratched"
don't let the stock market change your mood, just stop following it until things get better.

not smart because she used a margin account.... what an ass!!!

Fredericr said...

If I'm reading this correctly, the margin account is 100k$ with 50k$ borrowed? If so, that definitely is in the danger zone, and expensive at the td rate of 5%. When the market is crashing is the time you start borrowing, not when it was high. But that's hard to do, we all want to make more money when it's a bull market. Personally, I do occasionally margin, but I hedge with options or shorting. I'd never margin more than 20%

Anonymous said...

Take this opportunity to make a list of stocks you want to own. Keep on trucking.

Sunny said...

My margin debt is of $41 902.84.


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