My austerity plan: bread, peanut butter and black coffee

I just received my Just Energy dividend. I almost reached the 700$ in dividend income for the month of July, which is good, despite the fact that my portfolio seem to have reach the bottom line.

I transferred back a 5 000$ on my credit line. This leaves me like this for August 5, 2011 session (before the 5k deduction):

Non-registered portfolio value: 104 434$
Money used on margin: 35 481.52$
Money left on margin: 22 675.66$

I am under the 20k mark on my margin account (after the 5k deduction) and it seemed like my worst fear is slowly taking form: the TSX is losing points trading day after trading day. The US recently lost their triple A credit rank. Next Monday session will probably be very ugly, but I prefer not to think about it for now. Before Monday session start, I will again apply applied 5 000$ on my margin. But that time, it could not be enough.

I am seriously thinking about transferring my TFSA asset into my non-registered account. I am kind of froze in the moment and I find it very hard to go through this. It’s something very difficult to live. However, I always did what I wanted all the way, I don’t have any regrets – at least for now.

Another rough day for the Toronto Stock Exchange

I left home around noon and at that time, the TSX was under the 12 000 points, loosing, I could simply not believe my eyes, another 400 points being lost! I had enough of the stock market disaster. I had some free movie tickets left, so I took one and went to see Simple 8. It was very entertaining. Once I log in back to my laptop, the TSX had gained points, establishing itself over the 12k points. Currently, the TSX is at 12 164.23 points, a loss of 215.90 points. Not so bad, but what I anticipated happen. The TSX keep losing points, the bottom line has not been reached and that’s very scary and we are facing right now one of the most powerful, horrible events of our modern time, this being of course, speaking exclusively about money. But money is not anything and I am just very glad to be able to through this without too much problem. This being of course at this time. Because it’s a day-to-day situation and I am holding like ever before.

My non-registered portfolio is at 105 029.81$. There’s less than 15 minutes before the market closed. I am going to be ok with my margin, at least for today. But the question remains for the long term.

Finally, my sell order goes through. Remember yesterday, I was trying to set myself a sell order at a limit price of 8$ per unit for Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) and it wasn’t working? Well, I just place the sell order a couple of minutes ago and it finally go through. Whenever HZD reached the 8$ per minute, I will be selling all of my units. Other than HZD, I do not plan to sell any other investment. I had been patiently waiting to sell my HZD units for quite some time now. I hope my sell go through. It will help me to decrease my margin usage.

At this stage, I am not under panic. As a small investor, I know that my future financial success will depend on the action I take in those crucial times. Some of my investments are going extremely well, some other don’t. I will have more time this weekend to discuss about my investments that had performed well, and those who did not performed too well. Personally, I don’t think a portfolio can be compose of only winner picks, unless being a very good stock picker. In my situation, I will be considering myself extremely lucky if I can go through this without too much loss. I am not freaking out because I am confident the situation will sooner or later stabilize. I mean we still need natural gas, pipeline, and electricity right? This is not the end, it’s the beginning of a new capitalist and no matter what happen, I will obey to Wall Street gurus: I will continue to buy stocks as much as I can, but this time with real money, no more monopoly margin account money... Despite the situation, opening a margin account had been a great opportunity to test my investment abilities. We’ll see what happen next.

I am patiently waiting for my next week pay check to invest in TransCanada Corp (TRP). It will only be a 1 000$ worth investment which should allow me to buy more or less 25 stocks of TRP. TRP has a good chart and I think adding some stocks, even only 25 stocks, could be of a great benefit. I don’t have too much money to invest at this time. I may only be able to invest 1 000$ per month in stocks. It’s a good time to invest in TRP because they had announced lately a dividend distribution of 42 cents per share for stocks own at least 3 business days BEFORE September 30, 2011. So that’s currently the project.

But I have to admit, I am still thinking about the Sprott Strategic Fixed Income Fund (SFI.UN) and its 6% dividend. SFI.UN closed today session at 9.97$. At TD Waterhouse, SFI.UN has a margin loan value of only 25%, and TRP, has a 70% loan value. So for the benefit of my margin, I will probably invest in TRP, knowing the cash will be real and, on top of that, 700$ will be add to my margin account value - more or less. Got the picture? And don't forget that 10$ dividend coming soon :o)

My non-registered portfolio is now at 105 121.38$.

My non-registered margin portfolio had gone through a TSX 435.90 points lost without any problems... go baby go

When I left home earlier today to go to work, the TSX had already lost more than 300 points. Little did I know, but it didn’t stop there. On August 4, 2011, the TSX lost not 300, not 400, but 435.90 points. While facing the devastation, I did not feel anything, just like if I was totally disconnected in front of what was happening. I did not feel sad, I did not cry. I just look at the numbers, trying to understand the unthinkable. But this is real. Remember earlier today when I transferred 5 000$ from my credit line to my margin account? Well, the money had remained there.

This is how my non-registered portfolio closed August 4, 2011 session:

Non-registered portfolio value: 105 958$
Money used on margin: 35 481.52$
Money left available on the margin account: 23 471.56$

Even if the TSX lost more than 400 points today, I made it without a margin call or without having to deal with asset being sold automatically by TD Waterhouse to compensate on my margin lost. My non-registered portfolio might look crazy while looking at it quickly BUT I strongly believe that my diversification is what saves me today. I would have been able to go through August 4, 2011 stock market condition even without the 5 000$ that I brought in from my credit line to my margin account. Very good, but what if the TSX continues to lose points? I still have resources. I won’t let the Toronto Stock Exchange beat me. I will beat the beast.

The 2008 stock crash was much more easier to handle. Why? Well, it’s because once the stock market crash, it had reached the bottom line very quickly and following what, the TSX slowly gains points. This time, we are not facing the same thing.

The TSX had lost points on a regular basis for quite a long time now. Yesterday, the TSX rebound a little. And today, we had the crash that we now know. This time, no one can really say if he had reached the bottom or not. And the TSX could lose more points. And if it does, I will have to consider my options. Some analysts said that we could face a down market for the next 6 months or so. Does it mean that the TSX will lose points on every single trading day? We’ll have to live it to find out.

I still remain on my HOLDING position for many reasons. Many investments I hold inside my portfolio are still strong despite facing some major lost today: Bank of Nova Scotia (BNS), Methanex Corporation (MX), Fortis (FTS), Pembina Pipeline Corporation (PPL), Just Energy Group Inc. (JE), Pengrowth Energy Corporation (PGF), Enbridge Income Fund Holdings Inc. (ENF), Corby Distilleries Limited (CDL.A), Davis + Henderson Corporation (DH), EnCana Corporation (ECA), iShares S&P/TSX Capped REIT Index (XRE), Horizons Gold Yield Fund (HGY.UN), Canfor Pulp Products Inc (CFX), Exchange Income Corporation (EIF), TMX Group Inc. (X), K-Bro Linen Inc. (KBL) and First Majestic Silver Corp (FR), to name a few.

I am an eternal market optimistic no matter what and I still want to continue to invest. But this time, exclusively in blue ships, quality stocks. Right now, stocks like TransCanada Corporation (TRP), Canadian National Railway Company (CNR), and Enbridge Inc. (ENB) among other, stuff I talk to buy a little while ago. You know, all those quality stocks that pay very little in dividend? Well, it’s time to BUY a bit of each of them, even if it will be just by lot of 25 stocks. Basically, I plan to do the same thing I did following the 2008 stock crash: invest in stocks whenever I can, whenever money is available. And of course, I hope the market will eventually recover and that my worth will increase not to say explode in value, just like it did following the 2008 event.

I still believe in the market and it’s not anytime soon that I will give up.

I went through an interesting reading coming from the Globe and Mail: What investors need to do as the markets plunge. I really appreciate what John Stephenson, senior vice-president and portfolio manager at First Asset Investment Management Inc. has to say about the actual market situation. According to John Stephenson, dividend investment is still the way to go. Investors don’t have to go exclusively in GICs because of the rough market we are in. Gold and silver are a top value. John Stephenson had named TransCanada and Enbridge as strong value, etc. etc. I just hope he’ll turn wrong when he said that the market could go down to the 9 000 points... I mean, come on, we are in Canada, some of our companies, like PGF for example, are performing very well. COME ON CANADA. I am not giving up on you, don’t give up on me.

I think retailer investors have a role to play, even if it’s a small one. We need to HOLD in order to create HEALTH.

Tomorrow will be a decisive day as data regarding jobs will be available before the market opening. This time, I promise, I will try to wake up on time. ;0)

Facing the stocks market crash correction and a massive wave of sell on August 4, 2011

My best advice: HOLD tight. Everyone should be holding instead of selling and facing capital lost.

For the past couple days, the TSX lost points almost every single day, at the exception of yesterday. As an eternal optimistic, I taught that today, the market will have open on a happy note, but it’s totally the opposite that is currently happening. Today, retail investors like registered investors, small like big ones, we are facing a market crash, an in deep correction that made the TSX lost more than 300 points on just one day, at least so far. But a great news being, the day is not over yet, the market could rebound. But for the way it look so far, the market will face some major lost today.

My non-registered portfolio is at 107 073.80$. Considering what’s going out there, I find this amount being strong and of a good result. I previously wrote in previous post about what I will be doing if the market continues to crash. It’s a real day-to-day situation. At this time, I transferred 5 000$ on my margin account. That money is coming from my credit line. I think that transferred will be enough for now. And before midnight, if I see everything is ok, I will transferred the 5 000$ back on my credit line in order to avoid the interest. My non-registered portfolio just jump to 107 219.81$.

Today August 4, 2011 mark a very sad day. Anyhow, I always saw my investment adventure for the long run. A stock crash is something I can go through, but still, I have doing so well, and now, this crash is destroying my hard work. I plan to hold without selling anything for now, at the exception of HZD. This may be a good opportunity for me to finally sell at profit Horizons BetaPro COMEX Silver Bear Plus ETF (HZD)... at least something positive may happen from this stock crash. But even my sell order at a limit price of 8$ does not want to go through. It’s the first time one of my order limits do not get accept by TD Waterhouse. When I try to set a sell at 8$ per stock for my 400 stocks of HZD, I get this crazy message:

“Error: your order request cannot be processed.

Your limit price is too far off the current market price. Please re-enter or contact your local TD Waterhouse office for assistance.”

Thank you TD Waterhouse!

I am doing just like usual you know! But it’s this situation that is not usual. Currenlty, HZD trades at 5.04$. I want to enter a sell order so my units get sell at 8$. But seem like I cannot place my order. I guess TD Watrehouse has modified their trading structure because of heavy transactions. A lot of people are selling their stocks at this time. But myself, I just want to sell HZD. Just that one. I don’t think HZD will be reaching the 8$ today. Maybe tomorrow or another if the market continues to crash.

My non-registered portfolio is now at 107 068.91$. I have to get out of here get some fresh air.

... my non-registered portfolio is now at 106 998.24$ ...

Welcome back 20k on my margin account! You are here to STAY

For once, the stock market finished the day on a positive note. Having to deal with a market that keep losing points day after day after day can be quite heavy. It’s not fun at all. But finally, the TMX gains some points today! And guess who have more than 20k left on its margin account? ME! My non-registered portfolio closed at 108 682$. This left a 20 080.54$ value on my margin account. You know that, what I currently focus on is the ability to exceed and/or reach a minimum of 20k value on what is left as unused money on my margin. Its currently one of my obsessions. :0)

The market is showing some positive signs. I explain my silver investment situation in the previous post. Also, something very positive is that despite all, my investment in the Sprott Canadian Equity Fund is exceeding the 7 000$ value. It’s a good sign. 7 000$ is the amount I had invested in the Sprott Canadian Equity Fund in 2008.

By next week, I would very much like to invest in 100 units of Sprott Strategic Fixed Income Fund (SFI.UN). SFI.UN unit value is quite stable and I like that. I would use 1 000$ on my own pocket money. The 6% dividend yield is quite interesting. I want to bring in something new and very stable in value – at least so far. SFI.UN answered both criteria. I did not invest for a long time and I miss it. I am getting bored if not.

I can see myself going through this correction without too much problems now that the market gain points. But it’s really a day-to-day. The market is all twisted, weird and at the same time, full of surprises.

The stock market nightmare: what to do to preserve your assets while operating on a margin account

The stock market is still losing points. My non-registered portfolio is at 107 943.85$. It’s not that bad, but if the TMX continue to lose points every single day of the trading week, well, at a point, I will have to consider my options. But the situation is not as desperate as it seems and I am going to explain my view.

First, both gold AND silver are performing well. At this time, First Majestic Silver Corp (FR), which is among one of my top performer, currently trade itself at more than 23$ per stock. Remember my US investment in Sprott Physical Silver Trust ET (PSLV)? I had first purchased some units at 22$, when silver was on top of everything, just before the silver crash. Following the silver crash, I purchased again some other units at something like 15$ or 16$ to help stabilize the whole thing. My book value for the investment is of 3 075.16$. And right now, my investment in the Sprott Physical Silver Trust ET (PSLV) worth 3 061.50$. So I am very proud of this one. I knew I was doing the right thing while investing in PSLV. Eric Sprott view on silver was correct. Very soon, my investment in PSLV will be exceeding the 3 075.16$ initial investment value. Just watch it grow.

In my TFSA, I hold Sprott Physical Silver Trust UTS (PHS.U). My book value for this one was of 3 114.60$. Currently, the same investment worth 3 818.84$. I don’t have that much invested in gold, but what I currently hold in Horizons Gold Yield Fund (HGY.UN) and Claymore Gold Bullion ETF (CGL) is performing very very well.

If the Toronto Stock Exchange continues to significantly drop in value, I will transfer what I hold in my TFSA to my non-registered portfolio. Currently, my TFSA worth 4 676.95$. It’s not that much, but transferring my TFSA holding to my non-registered portfolio will add a direct value of 4 676.95$ to my now worth 108 126.37$ non-registered portfolio. An increase of 182.52$. Ok. That would make a total of 112 803.32$. Quite good to face the market demons.

Despite the actual market condition, I do not plan to transfer my TFSA asset to my non-registered portfolio. Not at this time. But it’s something that I will consider if the market continues its plunge.

Something else that I will consider if the market condition continues to deteriorate is to sell my Sprott Physical Silver Trust ET (PSLV) and transfer the US money into my Canadian non-registered portfolio. That would probably bring in a good 3 000$ value in.

Those are options I will consider if I lose, let say, another 5k on the stock market. If not, everything will remain the way it is at this time. And I hope it does.

I face an in deep stock market correction in 2008, and at this time, I guess we can talk of a mini-crash, or another market correction or something like it. No matter what it is at this time, it’s not extremely pleasant. However, the dividend continue to kick in and I am almost at 700$ in dividend income for the month of July. I think I am now only missing my Just Energy Group Inc. (JE) dividend for the month of July.

Despite it all, I have very strong asset in my portfolio that help me to fight the, what I am now calling the “stock market demons”. It’s kind of the fight of a lifetime and I truly think that HOLDING everything is the best way to go. Especially in my condition. I am 30, single, no children to take care of. I am currently employed at 2 jobs that I have for a couple of years now, so my job situation is quite stable, that help of course. Myself, I don’t need to cash in my stock money and I don’t plan to cash any. At this point of the game, any actions taken will determinate if I will fail or succeed. Since I started investing in 2005, I mostly have been a buy and hold investor and what I have gain in value, I own it for the most part to a buy and hold strategy.

I am hoping for the best of course, but I am not under panic because most of what I hold in my non-registered portfolio is still at a good value. I was surprised to see Sprott Inc. (SII) at more than 8$ per stock because back in 2008, SII has drop to 4$-3$ following the 2008 stock crash. So this time, I am enjoying Sprott Inc. (SII) stability. Other stuff like Methanex Corporation (MX), Fortis (FTS), Pembina Pipeline Corporation (PPL), Pengrowth Energy Corporation (PGF), Enbridge Income Fund Holdings Inc. (ENF), Corby Distilleries Limited (CDL.A), Exchange Income Corporation (EIF), TMX Group Inc. (X) and K-Bro Linen Inc. (KBL), for the major part, still have a strong value and seem to be able to go through this without too much problem.

I am unfortunately a small cap lover and I am now paying the price for my love. Small cap are good in a relatively stable market, the dividend are awesome. But stuff like New Flyer Industries Inc. (NFI.UN), Colabor Group Inc. (GCL) and Student Transportation (STB) among other seem to experiment some problem to go through this current very rough market condition. That’s how it goes with small cap. Rob Carrick explains that very well in an online article title Kings of Pain loaded with investment lessons. And yes, currently, I am under massive pain, but nothing I can’t handle. I will show you the drill and hopefully, I will go through this without a margin call or without any asset to be sold, at the exception of TMX Group (X). If the Maple Group deal go through, I will be cashing in more than 5 000$. That could eventually safe my margin situation and save my life ;0).

I also have a bit more than 6 000$ available on credit lines. In case of need, I will of course transfer that cash in my non-registered portfolio.

At this time, I am not taking any actions; I am not selling, buying anything. I am closely watching the disaster. My non-registered portfolio is now at 108 215.69$.

I hope my holding strategy is the best one: facing the stock market headache in front of my laptop day after day

The stock market is taking such of an ugly turn. I am still confident – despite it all – that I will be able to go through this but still, the experience is rough and the market is very depress. My non-registered portfolio closed at 108 470$, leaving a 19 944.83$ on my margin account. What I had been trying so hard to avoid actually happen now: I am now below the 20k on my margin account and it’s not something that I like. I don’t know how long it will take for the market to get back on track. Today, the TMX loss 193.31 points. Despite the market condition, the Sprott Strategic Fixed Income Fund (SFI.UN) closed at 9.95$, which I find very good knowing the units had been launched a few weeks ago at 10$. I finally received my Bank of Nova Scotia (BNS) dividend. Love it. Other than SFI.UN, Horizons Australian Dollar Currency ETF (ASD) seems to be another safe bet. Get rich or died trying and try until the end.

What to do with your TMX Group (X) stocks by August 5, 2011

While being away, I received a voting package for TMX Group (X), a yellow sheet. Unfortunately, I was in vacations I just return yesterday and the limit date for the vote was June 28, 2011. It’s about the Maple Group proposal, which I am totally against. Banks and other Canadian financial institutions already control enough, if you want my point of view. Luc Bertrand is another of those banker pigs who want everything under his control. Imagine, Luc Bertrand own 500 000 stocks of TMX Group (X). And now, he’s acting as CEO of the Maple Group who wants to acquire the TMX Group! That’s a complete non-sense and investors have to recognize the lack of integrity, so common in Quebec, of Luc Bertrand. As a shareholder of the TMX Group (X), Bertrand is acting with a lot of dishonesty. What he’s looking for is to cash a big amount of money once the Maple Group will complete the acquisition of the TMX Group (X).

Investors like myself of the TMX Group (X) has until August 5, 2011, 11:59PM Eastern Time to take a decision: option 1: cash in the maximum of money of the 50$ per stock that is propose by the Maple Group OR option 2: get a maximum of stocks of the new Maple Group organization.

I don’t have any interest in the Maple Group and I just find it very stupid coming from the financial institutions to come with this plan that they cannot really afford anyway. It’s all a matter of money. Why do you think Thomas A. Kloet is running like a fool to get a deal completed? It’s all a matter of money and Kloet is showing sign of a big lack of integrity because he had declared before that the Maple Group would not be of a great benefit for the Toronto Stock Exchange. But now that the deal with the London Stock Exchange is dead and after paying million of dollars to the LSE, now, the idiot is running after the Maple Group to get a deal completed. But why?

Maple Group offer 50$ per stock for up to 80% of all of the X stocks that are out there. Currently, the TMX Group stocks do not worth 50$ per stock. The current value is below 44$ per stock. So see, what Thomas A. Kloet wants is CASH. And a lot of it. And it’s totally disgusting. Those bankers are getting paid million of dollars annually but that’s not enough for them. They need to destroy the Toronto Stock Exchange just to make even more money.

In Canada, we live in a corrupted financial system that allow idiots like Thomas A. Kloet, Brian Mulroney and Henri-Paul Rousseau do whatever they want. Stupid and idiot.There's nothing you can do to protect yourself because Canadian society accept corruption.

If you are currently a shareholder of the TMX Group, I will suggest you to select the option 1. Get a maximum of cash – you deserve it as much as I do – at no commission fee and get the hell out of the Maple Group. The Maple Group is evil, it’s an attempt from bankers to control it all. Once the deal completed, the Maple Group stocks value could drop. The Canadian Exchange is great yeah, but it doesn’t worth 50$ per stock. Once the acquisition completed, the stock value will drop. That’s what I think. I also see in this option 1 a great way to decrease my margin usage and a great way to make good cash on something that I would prefer not to happen: the destruction of the Toronto Stock Exchange by some Canadian financial PIGS. Go for the cash, stay away from the Maple Group.

Still waiting for my Bank of Nova Scotia (BNS) dividend

A couple of good and bad news. The bad news: I am back in Montreal and my vacations are OVER. I left New Brunswick closed to midnight yesterday crying like a little mermaid. I didn’t want to leave. The ride on the bus was awful. The seats were not comfortable and I had trouble to just stay on my seat. The bus was almost full of passengers so I could absolutely not change of place. But I think it would have be the same thing on a different seat. I took 2 Gravol before getting on the bus, but maybe I should take 2 other ones half way. They make me feel a bit stone and sleepy. Without them, there’s no way I could had go through the ride.

X town in New Brunswick to Montreal

Anyway, I arrived at my apartment at 7AM. Everything was like I left it: nothing was missing from my one and a half container and the door was still locked. Yeah. Montreal is as beautiful as I left it. St-Laurent Boulevard was shinning under the hot August sun.

I taught I was pretty smart because I had escaped the heat wave that hit Montreal while being in vacations for the past 2 weeks. But it seem like the extreme hot weather is not over yet. Today is not that bad because there’s wind, but still, the weather is hot, but not extremely hot. But still, it was quite impossible for me to start ironing my t-shirts this morning. I place some stuff back into their usual places but I am not even done yet. I got ready and went to pay my BMO MasterCard. And here I am on my laptop at the Second Cup, at my usual spot, because it’s too hot in my apartment. The heat is not gone and this week is going to be awfully hot.

Spending money

For this month, I only have 278$ left to pay on my loans and stuff so it’s not that bad. The next pay check will take care of it. I spend more than usual, but despite all, it was quite reasonable. I count less than 1 000$ in expenses. Not much knowing that amount included groceries for the first 2 weeks of July and my bus ticket. My bus ticket was of 175$ in total. Part of the ticket got covered by my online money making. I shop before and while I was away and bought stuff but it was mostly things that I need, like a new pair of running shoes, a pair of shorts, t-shirts, a new bathing suit as the other one was going see through, 2 summer dresses, a pair of jeans, make-up and I guess that’s about it. I walk around a lot and I have problem to do one complete year with the same pair of running shoes. I don’t have a metro pass but that’s wanted.

Money money money

I am currently fighting my demons and I am trying to start a job search. For months I had been enjoying a lot of free time by just working at my evening shift and weekend job. Getting a daytime job inside my actual schedule is needed and possible. Also at this time, I would like to find a job in New Brunswick. I truly don’t know why it’s so complicated for me, but that’s certainly because I have it all, right. But at the same time, what I want is to have more cash to invest. So like usual, I am going in all the directions. I am like a chicken that got the head cut and is running everywhere. Everywhere but I have an idea of where I am going. Or kind of.

I know it’s not what Obama wanted, but I am happy that the US had resolved part of their problems. It made me feel better because I have a lot of money invested on the stock market. I was ready to take a deep plunge, but if it can be avoid, that’s better, isn’t? Despite it all, my non-registered portfolio is getting through this without too much trouble.

The Maple Group deal is completely retarded

I closed Friday session at 109 437$. Not bad, but I am far from the usual 113k. I still have left more than 20k in my margin account. That’s not too bad either. While being away, I received a voting package for Blue Note Mining (BNT), but I passed the day for the vote. Too bad. I also received a package from TMX Group Inc. (X), asking me to choose between cashing in 50$ per stock or getting just a transfer of title. I don’t believe in the Maple Group and I find it pretty disgusting. So if you asked me between cash or shares, I pick the cash. Banks are not very generous when it comes to dividend and Canadian financial institutions are going to put a lot of their shit on the Toronto exchange. I am voting against the Maple Group project. But if the deal go through, I want the cash, not the shares. At 50$ per stock, I am going to make a few hundred bucks on this and yeah, despite it all, life is good. And I am still waiting for my Bank of Nova Scotia (BNS) dividend to kick in. My dividend income is doing fine for the month of July.

If you want to find out how to save big bucks on sun tan lotion because summer is not over yet but my vacations are, click here.

Newest member of the Sprott Asset Management LP family: the Sprott Strategic Fixed Income Fund (SFI.UN)

Since I am pretty much fully invested, I don’t have that much money available to invest when good opportunities present by themselves or when new interesting financial product comes on the market. The Sprott Strategic Fixed Income Fund (SFI.UN) is one of those opportunities. While being in vacations, I am more or less disconnected, so I did not notice this new Sprott product until today. But SFI.UN had been launched just last week.

On July 19, Sprott Asset Management LP, who now manage 10$ billion in assets, had closed the initial public offering of Sprott Strategic Fixed Income Fund (SFI.UN). SFI.UN started its journey with 210$ million.

The Sprott Strategic Fixed Income Fund (SFI.UN) was launched at 10$ per unit. Today, despite the fact that the stock markets, US and Canadian, are both in bad shape, well, that doesn’t seem to bother the Sprott Strategic Fixed Income Fund (SFI.UN). Not at all. Currently, or should I say 20 minutes ago, SFI.UN trades at 10$ per unit. The fund is related to the fixed income, something very conservative and mostly made for seniors who don’t want to deal with too much risk under this market ultra volatility.

Myself, as part of fixed income, I own some GICs. I also own some units of the CIBC Monthly Income Fund, which is part of the fixed income family. Major part of my portfolio is invested in stocks. So adding a fixed income to my non-registered portfolio could be a good way to diversify the asset, but also, add something strong and stable in the value. Also, Sprott Strategic Fixed Income Fund (SFI.UN) units are diversified in themselves, meaning the money of the fund is diversified in different companies.

The Sprott Strategic Fixed Income Fund (SFI.UN) is actively manage, a bit like a mutual fund but in much better because SFI.UN units can be purchase just the way you purchase stocks. And from my understanding, the Sprott Strategic Fixed Income Fund (SFI.UN) will proceed with dividend distribution of 6% per year. And it’s been said: “to begin with”. Depending of the success of the fund, SFI.UN may eventually increase its dividend. But for now, a 6% yield is quite good. And on top of that, SFI.UN will proceed with monthly distribution! Isn’t that fantastic? Also, the fund dividend distribution offer a tax advantaged basis.

A 1 000$ investment in the Sprott Strategic Fixed Income Fund (SFI.UN) would provided a monthly income of... 5$. And a 2 000$... 10$. Gotha loves the stuff.

The US Republican Tea Party is destroying the economy worldwide

The non-registered part of my portfolio closed yesterday session at 109 730$, leaving me at 20 890.44$ on my margin account. Not too bad, knowing what’s on right now in the States. I find the Tea Party members really immature. John McCain is not showing great leadership and it’s a real good thing that the idiot did not win the last US elections. However, I heard a good speech of him at the news, saying that the Tea Party members who are also in the Congress were young in their jobs and that they needed to follow advice of older Republican Congress members. This is good for John McCain. 

A question still remain: how long will it take to go through a complete agreement? We need to remember the Tea Party members as a bunch of little idiots. The US destroys the economy in 2008 and they are doing it again today. Nothing to be very proud of. As you can imagine, I am following all this the best I can but in front of a big market correction, I won’t be able to do that much. As said previously, my best advice will be to HOLD, especially if you don’t need the money for another 5 to 10 years, which is my case.

I hope the Republicans are happy of themselves because right now, the TSX is under the 13 000 points. In results, my non-registered portfolio is now at 109 290.39$. It’s not that bad, but the day is not over yet and there could be deeper loss but usually, everything get pretty much set in the morning. I am down to 109k right now, but what about next Monday and the days after? Once an agreement is being take in the US, the TSX may jump back to the old 13 000 points but still, it remain far from the 15 000 points of 2008.

Seem to be better now, my portfolio reached 109 463.32$. That was 20 minutes ago. I may go through this day without a margin call. And after, it’s going to be the weekend and Monday latest, I am hitting back, unfortunately, to Montreal. Got to work still. It’s not going to be a Stop Working for me anytime soon. I spend hundreds of dollars and I am very happy about it.

On how the US debt crisis is affecting my investment portfolio

I was sad to learn that Jack Layton has a new cancer. Like if one was not enough. I hope for a quick come back. And just to make things worse, yesterday, the stock market took a deep plunge! My non-registered portfolio closed yesterday session at 109 945$. This amount left me with more than 21k on my margin account. I lost close to 4k in one day of trading, can you believe that... Usually, my portfolio is around 113k and, in very good days, it goes up to 115k. If only the US could deal with their debt problem properly, I wouldn’t be in that shit right now. No taxes for the richest? TAX AND TAX NOW AND IN DEEP!

I mean, Obama is so courageous. We need to respect the man who’s battling with the Republican PIGS. I am for a capitalist system, but it need to done with respect. And not taxing the richest people of the States is kind of evil. It’s the evil side of the capitalist system in the US. We are pigs, we want more, don’t tax us. Paris Hilton and the bunch of other dummies living richly in the States for no reason at all need to pay more taxes. It could be part of the solution, that and cutting unnecessary spending, froze government salaries. For me, the solution is quite easy actually. August 2 is coming and no decision had been taken.

The credibility of the US that is taking a slap. And in result, the Canadian dollars reached 1.06$. Despite it all, I don’t think the Canadian dollars will remain this strong forever. I was very tempted to transfer another 1 000$US in my US broker account but I need to keep the money where it is, in case, you know, of a very in deep correction.

At this time, investors, the good and the bad ones are all in the same boat... Not that I am suffering from this. I am use to the market volatility. It goes up and down most of the time, that’s how it goes. I am doing fine for now, but if no agreement is being vote in the US, well, I could face a margin call. In case of great needs, I have money I can take on my credit cards and 6 000$ available on credit lines... But of course, the interest rate on the credit cards is of 19% or something like it. Susan Brunner suggests to get a credit line, it make a lot of sense. Maybe TD will be kind enough to increase my credit line. I did not take any actions yet, I am just thinking and while facing the devastation, I am not doing much. This is being said, I think that the fact that I am in vacations is not playing in my favor either. That and the devastation.

However, the devastated stock market is not that devastated. Just for me, the Toronto Stock Exchange is up of a couple of points and in result... TADAMMMM... my super super non-registered portfolio is at 110 161.14$. I may go through this, but without any decision being taken on the US debt, my portfolio value could significantly decrease. This is the situation being live by every single retail investors at this time. All in the same boat.

What will make a difference at the end is the reaction of the investors while facing the crisis. Under no circumstances asset should be sell. We saw that in 2008, there’s been a sudden plunge, and then again, the market goes up again. I totally recover from that crash, but it been hard. This time could be worse and I wonder how deep it can go. But today, the stock market gain points just for me :0)