The trouble with the TSX index is that it is a concentrated index. In truth, that’s because the Canadian market is a concentrated market economy. For instance, the TSX 300 index holds: 32% weighing in financials. 16% is in energy….We’re talking almost 50% of the index in just 2 sectors!!! After that…Industrials and minerals come Read More
Small capped stocks are consolidating
In about a month, small capped stocks are supposed to move into their seasonally better time of the year. This, according to all of the seasonal gurus out there. The problem with classifying a small capped stock index is that capitalization, by itself, does not necessarily lead into correlation. In English, what I am saying Read More
Hype never works
Today, let’s look at the hyped up sectors that people bought into a year or two ago—seeing nothing but upside, all based on an investment “concept” or “theme”. Perhaps we can use the lessons of past hyped-up sectors to examine new or upcoming potential bubbles. Bandwidth, baby! The classic example of hype was the Read More
Two sectors that may break out
I love sideways stock patterns. In fact, I named my second book covering Technical Analysis after that pattern. There are two ways to trade stocks or stock sector ETF’s that are stuck in a sideways consolidation patter. You can buy at the bottom of the range (support) and sell at the top (resistance). Or you Read More
Is junk food healthy for your portfolio?
A study from The Physiological Society, shows that junk food can lead to many health problems including kidney damage on par with diabetes. Yet, amazingly, many fast-food outlets are considered “consumer staples”. I argued this point with resident CFA Craig Aucoin here at ValueTrend. How can a high fat hamburger & fries on white bread Read More
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Gold is a simple trade
Time to revisit the FANG’s
Brooke Thackray (Alpha Mountain) told me a funny, yet not so funny, story about an encounter he had with a fellow on the beach when he was on vacation. The man approached him after having identified Brooke from his media work. Of course, he immediately started talking about the markets. Brooke mentioned something about a Read More
Tax loss selling strategies
Thanks to reader Bruce for asking me to address tax loss selling strategies (both selling and buying) this year. I continue to encourage readers to offer blog topic suggestions on topics that might appeal to a broad audience. This question certainly does- especially given the rather volatile year we’ve seen on the markets. To start Read More
Blood in the streets
During the Panic of 1871 in Paris, when everyone was selling, Baron Rothschild was buying. When asked about his buying decision, Rothschild apparently replied that “The time to buy is when there’s blood running in the streets.” As noted in my “Smell of Fear” blog, there are some quantitative factors that we can watch for Read More
Canadian pipelines—worthy a position?
Bear with me as I set a background to understand the environment that Canadian pipelines face. I recently watched an interview with former Prime Minister Stephen Harper speaking about his new book. Here is the interview. This may appear a political comment, given my reference to Harpers book. But it is important to set the background Read More