Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific advice on the fundamentals of successfully investing in the stock market. Each Investor Toolkit update gives you a fundamental tip and shows you …read more »
In response to the BP oil spill in the Gulf of Mexico, regulators will probably require offshore drillers to install more equipment aimed at preventing future spills. These extra costs would hurt the profits of companies that are active in the Gulf.
That should spur more development of less-risky onshore oil …read more »
Investors often comment that we sometimes differ with the mainstream view on which stocks make good investments. That’s especially true with drug stocks.
The general view on these stocks seems to be that they are can’t-miss investments because the baby boomers are reaching an age when they will need drugs …read more »
Discover how you can make higher profits in gold investing — and minimize your risks
Click here to immediately download our new free report, Gold Investing: 7 Profitable Strategies for Investing in Canadian Gold Stocks.
When the economy is weak, gold’s popularity rises. As an informed Canadian investor, you’ve likely noticed that …read more »
We’ve long relied on these three tips to find the best stocks to recommend in our investment services and newsletters, including our flagship advisory, The Successful Investor. We think they can help you pick winners, too.
1. Some of the best stocks have hidden assets: By hidden assets, we mean assets …read more »
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific advice on the fundamentals of successful investing. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put …read more »
We continue to think investors will profit most — and with the least risk — by buying shares of well-established companies with strong business prospects and strong positions in healthy industries.
(In the current issue of Canadian Wealth Advisor, our newsletter for the conservative investor, we update our buy/sell/hold advice …read more »
Everybody knows it’s hard to beat the market over long periods. Fewer investors recognize that it’s easy to do a lot worse than the market. It’s especially easy if you fall for every new investment innovation that comes along.
Exchange-traded funds (ETFs) are an investment innovation that has advantages over some alternatives, but can still lead to steep losses. ETFs give you a low-cost way to invest in a narrow market segment. That’s cheaper than investing in a mutual fund with a similar focus. ETFs may cost you 0.5% a year, compared to 2% to 3% or higher on a fund.
ETFs are also safer than investing in just one or two stocks from the area you are interested in. ETFs spread your money around over dozens, if not 50 or more, stocks.
However, ETFs make it all too easy to jump into a narrow market area at just the wrong moment. They can lead you to build a portfolio of whatever is currently “hot” in the stock market: China, oil, solar power, agricultural investments, gold or whatever. But investments only turn hot after a lot of the profit has been made. If you stuff your portfolio with “hot” investments, you’re apt to have tepid results, at best.
Worse, when you focus on what’s hot, you tend to lose sight of investment quality and diversification. In the long run, that virtually guarantees poor results, if not deep losses.
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