Many investors buy units of asset allocation mutual funds because they think these funds provide an easy and profitable way to diversify between stocks, bonds and cash equivalents.
How asset allocation funds work
Asset allocation funds are mutual funds that can shift their portfolio allocations between stocks, bonds and cash in order to capitalize on perceived investment opportunities in any one …read more »
Many investors buy bonds to make their portfolios less volatile. But high-quality utility stocks, like the five we analyze in this issue, have several advantages over bonds.
One advantage of utility stocks is that there is no set limit to the returns they provide. That can help protect you from inflation. Bonds can’t provide this protection, because they’re fixed-return investments.
Utility stocks …read more »
We’ve long recommended these 4 safe investing strategies in our newsletters and investment services. They can help you cut risk — and increase profits — in your stock portfolio.
(Our special report, “Canadian Stock Market Basics: How to Trade Stocks and Make Good Investments in Canada,” is full of safe investing strategies that you can easily put into practice right away. …read more »
Exchange-traded funds (ETFs) have gained popularity in recent years, mainly because many ETFs offer very low management fees. In addition to low fees, the best ETFs offer well-diversified, highly tax-efficient portfolios.
However, quality varies. The investment industry has created all sorts of ETFs. All too many exist to tap into popular, but risky, themes and fads, so you need to be …read more »
Here are four common mistakes investors make when buying (or selling) stocks. By avoiding them, you stand a better chance of improving your returns — and cutting risk — in your stock portfolio:
1. Failing to take a broad view: When making investment decisions, it pays to take a wide range of relevant facts — positive and negative — into …read more »
H&R BLOCK INC. $17 (New York symbol HRB; Conservative Growth Portfolio, Finance sector; Shares outstanding: 329.2 million; Market cap: $5.6 billion; Price-to-sales ratio: 1.4; Dividend yield: 3.5%; WSSF Rating: Above Average) is the world’s largest provider of income-tax-preparation services. It also provides accounting services to businesses, as well as banking services to consumers.
The slow economy and high unemployment are …read more »
Non-bank financial companies, such as mutual-fund and insurance firms, are good ways to diversify your Finance-sector holdings. The six we analyze below are leaders in their niche markets. That cuts their risk. As well, their well-known brands will help them grow as the global economy continues to recover. We have a high opinion of all six companies, but only two …read more »
We take many different factors into account before we award a stock one of our Successful Investor Ratings (Highest Quality, Above Average, Average and Extra Risk).
You’ll find our ratings displayed next to every stock we recommend in our newsletters — including our flagship publication, The Successful Investor. They’re designed to help you quickly and easily identify companies that have the …read more »
Our Successful Investor Stock Picker Fund is one of four “pooled funds” we offer as part of our Successful Investor Wealth Management service. The fund takes its name from our Stock Pickers Digest newsletter, which focuses on investments that would be suitable for your aggressive portfolio.
Our pooled funds operate like traditional mutual funds. They give us a way to offer …read more »
BMTC GROUP $36.51 (Toronto symbol GBT.A; SI Rating: Extra Risk) (514-648-5757; No web site; Shares outstanding: 26.3 million; Market cap: $960.2 million; Dividend yield: 1.1%) is one of Quebec’s largest retailers of furniture, electronic goods and household appliances.
In the three months ended December 30, 2009, BMTC’s revenue rose 3.3%, to $223.9 million from $216.8 million. Earnings per share (excluding one-time …read more »