For Jean-François Tardif, former hedge fund manager: cash is king

This is quite huge. Who could know? In those difficult times, Jean-François Tardif, ex super star hedge fund manager is holding 70% of his portfolio in cold cash! Jean-François Tardif the master of the TSX himself is only holding 30% of his portfolio in stocks and bonds. JUST 30%. Read it here.

AHHHHHHHHHHHHH

I am following Jean-François Tardif like no one else out there. See, it happen that the guy is quite mysterious but even there, he managed do some comebacks from time to time, a Jean-François Tardif fresh band news pop up. And of course, I am reading it all. And this time, Jean-François Tardif is getting back to the basic of investment: cash. Jean-François Tardif is not investing in silver, not even in gold.

So seem like my decision to pay off debt until the end of 2011 is a good decision after all. Don’t you think so?

I am a f genius. LOL.

Oh, and by the way, Jean-François Tardif also said that a 5-6% will be the average portfolio return in the next couple of years. A 5-6% per year. Not 7. Not 8. Not 9. Just a tiny little 5 to 6%.

INCREDIBLE.

At this time, I think I will just leave my portfolio the way it is and pay on my massive debt because gees, Jean-François Tardif himself has more than 70% of his portfolio in CASH. We got this incredible chance, us, retail investors, to know what’s going on with Jean-François Tardif. The millionaire is holding not stock, but cash!!!! We have to take that in huge consideration.

At this time, the best thing I can for my little self is to pay off some debt. That’s what I will be doing in the next couple of weeks.

I am extremely happy to have discovered this today. Because in case you didn’t know, here at the Dividend Girl blog, we’re HUGE fan of Jean-François Tardif and the fact that Jean-François is a Quebecker doesn’t change anything in that.

LOL.

I know I know... I SO BAD AND SO BLESS at the same time.

I am happy to see Jean-François Tardif off the market a little because being in it, being fully invested is really not easy at this time. I am able to go through this because I am now at home in New Brunswick, I am not getting here the stress of the city. Here, I can live my market stress by looking at trees of my backyard.

I don’t know how things will turn out but I know for sure that getting a view from Jean-François Tardif himself is kind of a release. I don’t think he would have appreciated managing an hedge fund in those market conditions. Got to admire the man if you’re not stupid 100% fully invested (which I am unfortunately am).

They call it a bear market

They call it a bear market. And myself, I don’t know how to name the description we’re living in at this time. I did not expect to be so bad. I did not expect to lose more than 16 000$ on the market. It was not planned; it wasn’t supposed to happen to me. This is not my destiny. This is not how I had plan things to be like. I was supposed to have it easy. Not soo hard. I had been doing so well and now, the hard work is, for now – gone with the wind. In a matter of just a couple of weeks, I went from a beautiful 160k in asset to the now you know what.

I am not totally in desperation, but... This is king of hard and it’s getting harder each single time the TSX is taking a hit. I am being punch down like if a dragon would be punching my stomach over and over again.

In my live, nothing is very much easy. I took a nice summer vacations at the end of July. When I came back, I got hit by behind by the August stock crash. Months pass, but the situation is not getting better – but that being just for the portfolio life. Because if you are asking me about my personal life, well strangely, it never been better.

I never taught it would had become possible for me to change job, to get even a better one and, even better, get that better job in a better province other than Quebec. That being in New Brunswick of course.

But it seem like I cannot have it all.

Good night.

Dealing with a massive 85 168.13$ worth of debt

I am currently at 85 168.13$. That amount do not include my current credit card balance of 1 854.55$ because I manage to pay my credit card balance every month. So my official amount of debt is of an awfully high 87 022.68$. Many things explain that high level of debt: my move from New Brunswick to Montreal, my little trip to Ottawa just before leaving, the visit of my mom to Montreal, shopping, my one time car insurance payment for the full year (1 300$)... All those things had significantly increased my debt level. 

At 85 168.13$, I am the highest I had never been in debt. Another factor that is not helping in all this is the situation regarding the TMX Group Inc. (X). I had purchased some X stocks back in February 2011 using my margin account money, hoping to get rich over the London Stock Exchange deal. Unfortunately, the merger project got cancel, and now the Maple Group acquisition project is still pending.

September 30, 2011 was supposed to be the closing date for TMX investors to choose between a maximum of cash or a maximum of stocks... I had picked a maximum of cash option in order to reduce the money I borrowed on my margin and also to make a good profit out of the sale. But here again, it did not happen. So fact that the deal did not go through yet is not helping my situation is any way. If the deal would have gone through, my debt level would be at 80k right now. Not 85k.

Many factors are not helping me in the management of my debt.

It could take several months before the TMX-Maple Group go through. In the mean time, I decided to hold. TMX stock value is stable and could even increase in the next couple months. I don’t feel that selling is an obligation at this time but at the same time, I feel that I need to do something about my debt. And at the same time, I still have planned ahead my next investment – probably in Enbridge (ENB).

So what am I going to do about this mess? :0)

Well, after studying at the numbers, I think – for once – that I will be looking forward at reducing my debt level until the end of year 2011, hoping that in the mean time, the Maple Group-TMX deal will go through.

My debt situation on date of October 2, 2011

8 830.15$ at a low interest rate of 4.75% (RRSP credit line rates) = 419.43$ in annual interest

4 900$ at a low interest rate of 4% (credit line rates) = 196$ in annual interest

7 790$ on a TD Canada Trust credit card at a low interest rate of 4.9% (result of a credit card balance transfer) = 381.71$ in annual interest

7 238.77$ at low interest rate loan at 5.50% (student loan) = 398.13$ in annual interest

5 000$ at 8.75% (credit line) = 437.50$ in annual interest PAID OFF

10 000$ at 7.52% (credit line rates) = 752$ in annual interest

46 409.21$ at a low interest rates of 4.25% (margin money coming from TD Water house): =
1 972.39$ in annual interest

TOTAL: 85 168.13$

TOTAL in annual interest: 4 119.66$
[In date of October 2, 2011]

And what about now?

On date of July 2011, my overall investment portfolio worth 160 758.53$. On date of September 30, 2011, my investment portfolio worth 144 575.67$... That’s following the crash of August and recent recession feeling messing out the TSX. That’s represent a loss of 16 182.86$, but it’s actually not as terrible as it sound. I will explain why.

As you can see, I finally update my portfolio, it hasn’t been updated since a real long time but the exercise was a necessity, especially at this time. I wanted to have access to recent numbers to help me evaluate the reality better. And the reality hit hard with an overall accumulate lost of 16 182.86$.

Like many other, I am a victim of the market volatility. I lost more than 16k but I am confident the market will eventually rebound. Silver had taken a deep plunge and it hasn’t helped me because I hold silver in US dollars, in my RRSP AND TFSA... How I take it? Well, a 16k is not a 20k. It’s not a 50k. It’s not a 100k. It’s just what it is: a 16k lost. Nothing at all if you want my point of view knowing what's currently going on and for all the risks taken inside my portfolio.

I just recently hit the 5k in dividend income! 16k – 5k = 11k...

See, I am currently loosing close to 2k just with the Sprott Canadian Equity Fund itself so yeah F Sprott.

:0)

There’re different ways to analyze such lost - by being a bitch or an angel - but while being fully invested with no available cash aside, I was aware of the risk. Going through this had been a painful exercise but I am amazed because I didn’t lost more but I could definitively lost even more money among the way...And more than ever I AM READY ohhhhhh lol

But those are not definitive lost. The market will EVENTUALLY rebound.. I saw Buffet at television today. He had opened the US market this morning and it seemed like he was optimist about a recovery because the companies he own had growth. I believe in my chances so watch out. The game is not even over.

At this time, I strongly believe it’s crucial to continue to invest like I had been doing publicly since 2007. Maybe not the publicly part, but at least, adding quality blue chips will help for the long run. It’s not anytime soon that I am going to stop investing and forget about bonds. Quality blue chips can bring much more than what bond can do and I am not a Bond Girl, I am the Dividend Girl gotcha? By investing in stocks, I increase my chances of going through a complete recovery. I did it for the 2008 stock crash so better watch out, I am going to burn myself again and I am going to do it again. ALL OVER AGAIN.

This is my ultimate chance to put a maximum of cash in my portfolio. I currently have a 640$ I could invest. The only problem is what’s going to be my next investment. Ok, I said Enbridge (ENB), but I would like maybe some units of Sprott Strategic Fixed Income (SFI.UN) or something else and then after, at the end of October, I will be investing in Enbridge.

It’s getting more and more difficult for me because I already have a lot of stuff in my portfolio and I don’t know too much of what my next couple investments will be. Because of course, there will be plenty of other. I was thinking maybe making a comeback with BA since I don’t have anything regarding telecommunication. But yeah, it’s getting harder and harder.

I can’t wait to bring in some units of Sprott Strategic Fixed Income (SFI.UN) in my portfolio.

I didn't hear anything recently regarding the TMX-Group and Maple bullshit. It's because it's all that. Just SHIT that may go through. I am not reading anything about the acquisition. Is the deal dead? Or alive? It's alive because that way, Stephen Harper will have a direct influence on our economy and from that time, we'll be DEAD. Stephen Harper is going to kill the economy.

Are you ready for that?

I am not.

My investment portfolio on date of September 30, 2011

Savings:
245.81$

Non registered Investments:
Stocks and Units investment portfolio CAN$
Sprott Inc. (SII): 6 649.50$
Timminco (TIM): 38$
Blue Note Mining (BNT): 24$
Bank of Nova Scotia (BNS): 5 641.04$
Hanwei Energy Services (HE): 33$
Methanex Corporation (MX): 2 248.49$
Fortis (FTS): 3 556.44$
Pembina Pipeline Corporation (PPL):
11 516.85$
Just Energy Group Inc. (JE): 6 643.26$
Pengrowth Energy Corporation (PGF): 2 102.34$
Enbridge Income Fund Holdings Inc. (ENF): 6 090.40$
Corby Distilleries Limited (CDL.A): 1 658.30$
Davis + Henderson Corporation (DH):
3 446.55$
Premium Brands Holdings Corporation (PBH):
6 486.14$
EnCana Corporation (ECA): 4 094.51$
iShares S&P/TSX Capped REIT Index (XRE): 2 262.26$
Horizons Gold Yield Fund (HGY.UN): 1 888$
Canfor Pulp Products Inc. (CFX): 1 294.80$
New Flyer Industries Inc. (NFI): 1 352$
Capital Power Income L.P. (CPA.UN): 1 890$
Exchange Income Corporation (EIF): 5 877.18$
Rogers Sugar Inc. (RSI): 1 570.80$
Student Transportation (STB): 1 229.58$
Colabor Group Inc. (GCL): 1 965.60$
TMX Group Inc. (X): 4 175.88$
Data Group Income Fund (DGI.UN): 1 916.59$
K-Bro Linen Inc. (KBL): 1 853$
Westshore Terminals Invest Corp (WTE.UN): 4 394$
WesternOne Equity Income Fund (WEQ.UN): 2 272.40$
Atlantic Power Corp (ATP): 1 482$
First Majestic Silver Corp (FR): 1 599$
Kinross Gold Corp (K): 2 335.50$
TransCanada Corp (TRP): 1 063.50$
Canadian National Railway Co (CNR): 1 260.54$

TOTAL: 101 911.45$

Stocks and Units investment portfolio $US:
Sprott Physical Silver Trust ET (PSLV): 2 182.30$
US cash: 4.12$

TOTAL: 2 186.42$ US

Tax-free savings account (TFSA):
EnerCare Inc. (ECI): 22.23$
Dumont Nickel Inc. (DNI): 460$
Sprott Physical Silver Trust UTS (PHS.U): 2 831.52$
Cash: 3.08$

TOTAL: 3 316.83$

RSP investment portfolio:
Sprott Canadian Equity Fund: 5 896.92$
Claymore Gold Bullion ETF (CGL): 4 928.04$
EnCana Corporation (ECA): 2 017$
Emera Incorporated (EMA): 6 849.72$
Sprott Physical Silver Trust UTS (PHS.U): 943.84$
Cash: 104.51$

CIBC Dividend Growth Fund: 518.35$
CIBC Emerging Markets Index Fund: 324.75$
CIBC Monthly Income Fund: 947.61$

Energy and Base Metals Term Savings (Indexed term savings):
503.46$
Natural Resources Term Savings (Indexed term savings):
502.06$

GIC National Bank: 1 251.85$
GIC Plus TD: 500$

Maritime Life International Equity Fund
(Templeton): 561.50$
Manulife Simplicity Growth Portfolio: 822.54$
Maritime Life CI Harbour Seg Fund: 946.25$
Maritime Life Fidelity True North Seg Fund:
954.44$
Manulife GIF MLIA B World Invest: 564.19$

Great-West – various: 1 834.72$

RBC Canadian Dividend Fund: 515.09$
RBC U.S. Mid-Cap Equity Fund C$: 1 817.80$
RBC Global Resources Fund: 940.85$
RBC O'Shaughnessy International Equity Fund: 575.41$
RBC O'Shaughnessy All-Canadian Equity
Fund: 1 083.18$
RBC Global Precious Metals Fund: 872.44$

TOTAL: 36 776.52$

Social Capital at Desjardins Membership share
for 3 accounts: 40$

Savings + Stocks, units, mutual funds + Tax-
free Savings account + RRSP + Online Income
(98.64$):
144 575.67$

The Canadian National Railway Co (CNR) is rocking the TSX

I had been quite busy lately and it’s been a blessing because that way, I don’t have time to think much about my portfolio. Some readers are taking real pleasure at smashing my investments. To those little animals, I will say: check out my latest investment in Canadian National Railway Co (CNR)!

I had talked about investing in Canadian National Railway Co (CNR) for weeks! I finally made my move last week. I purchased some Canadian National Railway Co (CNR) stocks at only 65.19$! CNR had closed today session at a fantastic 70.98$!

Unfortunately, it’s not everything that I hold that is performing that well. Think about FR, NFI, DGI.UN, PHS.U, SII and other. BUT, some stuff like PPL, ENF, ATP, KBL, WEQ.UN, BNS and other are performing very well.

So I have a both side portfolio: part of my portfolio is performing well and another part not at all. Overall, the result is ok. I can live with the market volatility as long some stuff in my portfolio is performing well, I can basically go through almost everything. I think we had proved that since I am a 2008 stock market crash survivor.

Right now, I have this chance where I can put more than 1 000$ per month in my investment hobby. I am never getting enough of it. The cash flow and the boat float.

Deal or no deal: more about the Maple Group-TMX Group Inc. acquisition project

I had been living for this moment for MONTHS!

Let’s go back in time. It’s on February 10, 2011 that I decided to purchase some stocks of TMX Group Inc. (X) at 41.97$. For this new acquisition, I had used some of my margin account money. I made this acquisition shortly after learning the merger project between the London Stock Exchange and the TMX Group Inc. (X). There was no doubt in my mind that something important was going on and I wanted to be part of it and make a huge profit. So I place my investment, wait a couple of months, vote in favour of the merger. The vote did not even go through; the TMX decided to cancel the project and had to pay millions of dollars in compensation to the London Stock Exchange. I always find it very weak coming from the TMX Group not to go down to it. They could have made the vote happen, but they decided to cancel everything.

From that time, because the vote did not even happen AND I TOOK TIME TO VOTE AND READ THE BRICK I HAD TO READ BEFORE VOTING F, well, from that time, I knew the TMX Group was all about bullshit, I knew the Maple Group offer was going to go through.

The Maple Group is composed of many banks and pensions funds. Now those major financial institutions want the most precious thing Canadians own: the TMX. Our stock market is very strong. I lived in myself. I am a young investors, I cannot say I went many crash BUT, I went through the 2008 stock market crash. I started investing in stocks shortly before the crash. The effect had been disastrous. However, I had been able to go through this crash without experiencing any lost. Back then, I was using my own money ONLY. Just to add up to the excitement, I decided to borrow to invest and following what, I decided to open a margin account and used the margin account to pay off credit lines debt at a higher interest. It was a good idea, but it’s not exactly what happens. While having more than 50 000$ available in CASH in my broker account, well, I did not use the money to go shopping, but instead, I used part of the money to invest. Was it a good decision? Well, I won’t answer to this question but so far, from December 2011 (when I started the margin thing) to present, well, it all went fine. However, I am exposed to a high level of risk. So my margin thing happens, I lived it, and I am still under margin even on date of today.

So I used margin account money to invest in TMX Group because my chances to win big through a London Stock Exchange deal or even a Maple Group deal were good. I had my chance to make a nice profit out of money I never worked for. And that what turn me on.

Investors had until September 30 to vote for their TMX Group Inc. (X) preference: earn a maximum of cash or a maximum of stocks via the Maple Group acquisition. I picked the maximum of cash option because that will provide me a 50$ per stock. This is quite impressive because I will earn a 50$ per stock out of money I never earned and also, during that time, I also earned dividend from the TMX Group Inc. (X). So who’s being smart now? I am pretty sure the Maple Group offer will go through because financial world is all bullshit and while the Maple Group first rep is a Quebecker of the name of Luc Bertrand is trying to play it smart and corrupt a diamond belonging to Canadians. Because with Quebeckers involved, nothing good is going to happen for the TMX Group.

This being said, I encourage investors to go in favour of a maximum of cash position because the Maple Group is not an existing society being trade on the TMX. No want can really know how much the Maple Group worth. And I don’t myself believe in the value of the Maple Group. Banks and pension funds to own the TMX? Right there, something is not right. As retail investors, we’re pretty much powerless while facing such events, BUT you can decide to avoid the bullshit by selecting a maximum of cash option.

Think twice, once created, the Maple Group could worth a lot less than 50$ per stock. Maple Group is not an active company that is currently being trade on the TSX. That’s my point here. I am not a Maple Group believer and I vote and make my choices following what I think is good or bad. The Maple Group is a real bad thing. Better stay away from it.

I believe in the power of my choices and I believe in the power of the CASH.

My next investment: Enbridge Inc. (ENB)

I had set up an automatic purchase for some stocks of Canadian National Railway Co (CNR) at a value not exceeding 66$ per stock today this early morning. Once I came back home from work, I log in to my broker account and after what I saw that my purchase order go through today at 9:30AM, directly at the opening, at only 65.19$! CNR closed today session at a fantastic 67.34$! That’s quite an awesome profit made in one day only! +2.15$ per share!

My newest investment had performed very well, but I cannot say it’s the case with everything else I hold in my portfolio. My non-registered portfolio closed today session at 103 043.07$. Everything is pretty much down, but stuff like FTS, EIF, ENF, PPL, KBL, PGF and a few other are doing well no matter what.

While being fully invested, the only way to go through this actual recession for me is to continue to purchase high quality blue chips stocks. Now that I am all settle with my new job and my old bedroom, I have the opportunity to save more than ever before. Not that my salary is that huge, but while living in the suburb located far away from the entertainment of the city, it never been easier than this for me to save money. I even find a part-time job here that I may apply to, just to spend more time outside my place you see what I mean? Because my place is also my mom place and my father place... Family life, heavy talking, heavy TV sounds and everything and anything you can’t even imagine! Bla bla bla. I want to hear SILENCE when I blog. I hate noises. I hate to be annoyed and disturb. It’s actually not as bad as its sound. :0)

Now, my only concern is in what to invest next. It’s extremely difficult to target high quality stocks. I want to add some new stuff to my portfolio. I previously wrote about stocks I wanted to add in. While being fully invested, the only good thing to do while facing a recession is... to continue. Because I am totally to BOOST things up on Bay Street with my few thousand dollars. SO BE READY.

Want to know what my next stock investment of October will be?

Enbridge Inc. (ENB). ENB is a Derek Foster stock and Gordon Pape has provided a positive review in his column that appears in my TD Waterhouse account. I think Susan Brunner own some ENB stocks as well, but I am not totally sure. 

It's the blue chips mania. I am ready so be ready.

Welcome in CNR!

I won't be able to purchase my stocks in real time, but I place an order to buy a few stocks of CNR. Despite the fact that its a company based in Quebec province, CNR chart is very impressive and I am in need of something like this. I need a strong company in a week economy to help stabilize my portfolio. Going on with blue chips is the only way to go at this time. I am happy with this future today acquisition. I wanted CNR in for quite sometime.