How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice tobeginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

In addition, Pat thinks then beginner investors should cultivate two important qualities: a healthy sense of skepticism and patience.

Investors should approach all investments with a healthy sense of skepticism. This can help keep you out of fraudulent stocks that masquerade as high-quality stocks. It will also keep you out of legally operated, but poorly managed, companies that promise more than they can possibly deliver.

If you are a new investor, you should also realize that losing patience can cause you to sell your best choices right before a big rise. All too often, investors buy a promising stock just as it enters a period of price stagnation. Even the best-performing stocks run into these unpredictable phases from time to time. They move mainly sideways in a wide range for months or years before their next big rise begins. (Stock brokers often refer to these stocks as “dead money.”)

If you lack patience, you run a big risk of selling your best choices in the midst of one of these phases, prior to the next big move upward. If you lose patience and sell, you are particularly likely to do so in the low end of the trading range, when stock prices have weakened and confidence in the stock has waned.

Canadian capital gains tax

We have just released our special report for the tax-loss selling season—our most popular report on capital gains taxes. Many investors will sell off stocks before the end of the year in order to reduce their Canadian capital gains tax for 2016. Among them will be very good stocks that have come down in price but should rebound strongly. In our free report, we recommend seven stocks we believe are the best candidates for extraordinary recoveries in the wake of tax-loss selling. The report is ready to download. Just click on Home Capital Group, Bellatrix Exploration and 5 Other Great Stocks to Buy Among Canadian Capital Gains Tax Sell-offs to get your free copy now.

If you’re looking for stock-market bargains, December is the best time of year to find them.

Here’s why: Investors love to sell stocks for a profit, but they hate to sell at a loss. That’s why many investors spread their selling-for-a-profit throughout the year, while holding on to stocks that have dropped.

Toward year-end, it occurs to these investors that they’ll have to pay taxes on their capital gains, regardless of whether they made money overall. This leads some investors to dump their losers near year-end, simply to establish a capital loss for tax purposes, to offset a capital gain.

That can create great stock-market bargains, because it puts temporary downward pressure on prices of stocks that have been weak during the year. But the best of those stocks can put on extraordinary recoveries after tax-loss selling season ends on December 24. If you know how to spot these fast-moving stocks, you could put yourself in position for big gains.

We have updated our special report on tax loss selling with seven stocks due for big gains in the wake of the year-end sell-off. Home Capital Group, Bellatrix Exploration and 5 Other Great Stocks to Buy Among Canadian Capital Gains Tax Sell-offs is ready to download free.

In this special report, you get my full analysis of all 7 of these companies. What’s more, all are well-established companies that are leaders in their industries. That cuts your risk.

Along with my full analysis of these stocks, you’ll also get full details on how tax-loss selling works, and how it has the potential to create stock-market bargains that may skyrocket in early 2017. Download this report now, and you’ll have a head start on the tax-loss selling season—and plenty of time to make what could be some very rewarding decisions.

This exclusive report is yours FREE as my “thank you” for signing up for my free daily articles and updates on TSI Network.

To get our full report on the best buys of tax-loss selling season, you can download Home Capital Group, Bellatrix Exploration and 5 Other Great Stocks to Buy Among Canadian Capital Gains Tax Sell-offs.

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How To Invest Post Archives

Canadian capital gains tax is one of the lowest you’ll ever pay

Canadian capital gains tax is one of the lowest you’ll ever pay

This year’s stock market volatility spurred a rise in investor questions about capital gains tax. Those questions keep coming in.

There are three forms of investment income in Canada: interest, dividends and capital gains. Each is taxed differently. Here’s a reminder of how smart investors use their… Read More

The presidential election effect on the stock market

The presidential election effect on the stock market

Here’s our view on the presidential election effect on the stock market
Lots of Canadian and international investors were worried about the U.S. political situation and the subsequent election effect on the stock market.
Some worried that if Democrat Hillary Clinton won the U.S. Presidency, lots of… Read More

The top down and bottom up approaches to investing

The top down and bottom up approaches to investing

Which do you think leads to better performance: the bottom-up approach or the top-down approach? The answer may surprise you.
Successful investors generally understand that you have two basic ways to make investment decisions: the bottom-up approach and the top-down approach.
Here’s a look at these two… Read More

Bad investment advice and cliches you should ignore

Bad investment advice and cliches you should ignore

If you take bad investment advice from others, you may end up selling a stock too early or engaging in unprofitable investing strategies

Most investor sayings and clichés have at least a hint of truth. But they can still lead you to take good or bad… Read More

Who pays capital gain tax?

Who pays capital gain tax?

Look no further if you want to discover who pays capital gain tax (and if it includes you)

Who pays capital gain tax? Investors who sell a stock outside of an RRSP or RRIF pay capital gains tax if they’ve made a profit on the… Read More

10 keys to finding undervalued stock picks

10 keys to finding undervalued stock picks

Here’s how to find undervalued stock picks—and maximize your long-term profits.

One of the key principles of successful investing is to buy high-quality “value stocks”: They’re stock picks that are reasonably priced, if not cheap, in relation to their sales, earnings and assets. Typically, value stocks… Read More

9 mistakes to avoid when you invest money in stocks

9 mistakes to avoid when you invest money in stocks

Avoiding these mistakes will help you invest money in stocks more successfully

Almost all investors make one or more of these mistakes sooner or later as they invest money in stocks. Unfortunately, these mistakes can be costly to correct:

1. Too little diversification among… Read More

What to hold in your RRSP

What to hold in your RRSP

Discover types of stocks and other investments to keep outside your RRSP—and the types of investments that benefit from an RRSP tax shelter.

Registered retirement savings plans, or RRSPs, are the best-known and most widely used tax shelter in Canada. The tax treatment of … Read More

How to profit from dual-class shares of Canadian stocks

How to profit from dual-class shares of Canadian stocks

When it comes to dual-class shares, voting shares have certain advantages over non-voting shares

Aside from specific investments (such as U.S. and Canadian stocks, income trusts or exchange-traded funds), our Inner Circle members ask us a wide range investment questions. For example, I’ve been… Read More

How to avoid selling top rising stocks

How to avoid selling top rising stocks

Don’t undercut your profits by selling your top rising stocks too soon.

Attempting to sell stocks at a peak price isn’t a great idea. It sounds good in theory, sure. But in practice, it simply doesn’t work. You will most likely end up selling… Read More

How to get the most capital gains tax benefits from your RRSP

Investors sometimes ask us whether they should hold certain investments inside or outside an RRSP to get the most tax benefits. Historically, there were certain investments that could increase your capital gains tax if you held them in your RRSP. In July 2016, that remains the case.
Holding… Read More