Pat McKeough

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.

As early as 1980, Pat was recognized as #1 in the world of published investment advice by the Washington, DC–based Newsletter Publishers Association, and he was the first multi-year winner of The Globe and Mail’s stock picking contest.

Both CBS MarketWatch and The Hulbert Financial Digest recognized Pat as one of North America’s top stock analysts. The Wall Street Journal called him “one of only four investment newsletter advisors who have managed to serve their readers well over the long haul.”

A best-selling Canadian author, he wrote Riding the Bull, his 1993 book that predicted the stock-market boom of the last half of that decade. Through his many television appearances, he is well-known to investors for his insightful analysis and his candid, unpretentious style.

Bottom line: Pat’s conservative, reduced-risk strategy is a proven approach to safe investing.


ISHARES MSCI GERMANY FUND $26.05
(New York symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index. This index aims to replicate 85% of the market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.

The ETF’s top holdings are Bayer (diversified chemicals), 10.1%; Daimler (autos), 7.1%; Siemens (engineering conglomerate), 7.1%; BASF (chemicals), 6.7%; Allianz (insurance), 6.5%; SAP (software), 6.0%; Deutsche Telekom, 4.9%; Deutsche Bank AG, 3.7%; Linde AG (industrial gases), 2.9%; Munich Reinsurance, 2.9%; Volkswagen AG, 2.8%; BMW AG, 2.8%; Fresenius (health care), 2.4%; and Deutsche Post, 2.4%.

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ISHARES MSCI SOUTH KOREA INDEX FUND $47.66 (New York symbol EWY; buy or sell through brokers) aims to track the MSCI Korea Index.

The ETF’s top holdings are Samsung Electronics, 19.1%; Hyundai Motor, 3.8%; SK Hynix Semiconductor, 3.7%; Shinhan Financial, 3.0%; KB Financial, 2.4%; Hyundai Mobis (auto parts), 2.4%; Naver (Internet), 2.4%; Korea Electric Power, 2.2%; Kia Motors, 2.2%; Posco (steel), 2.2%; Korea Electric Power, 2.2%; KT&G Corp. (tobacco), 2.0%; and AmorePacific Corp. (cosmetics), 2.0%;

The iShares MSCI South Korea Index Fund was launched on May 9, 2000. Its expense ratio is 0.62%.

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ISHARES MSCI EMERGING MARKETS INDEX FUND $33.05 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index.

The fund’s geographic breakdown includes China, 23.0%; South Korea, 14.7%; Taiwan, 12.3%; India, 8.4%; South Africa, 8.1%; Brazil, 6.9%; Mexico, 4.8%; Russia, 3.9%; Malaysia, 3.1%; Indonesia, 2.4%; Thailand, 2.2%; and Poland, 1.6%.

Its top holdings are Samsung Electronics (South Korea), 3.0%; Taiwan Semiconductor (computer chips), 2.8%; Tencent Holdings (China: Internet), 2.5%; China Mobile, 2.1%; China Construction Bank, 1.7%; Naspers (South Africa: media and Internet), 1.5%; Industrial & Commercial Bank of China, 1.3%; Bank of China, 1.1%; and Hon Hai Precision Industry (Taiwan), 1.1%.

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ENBRIDGE INC. $52.76 (Toronto symbol ENB; Shares outstanding: 856.7 million; Market cap: $45.4 billion; TSINetwork Rating: Above Average; Div. yield: 3.5%; www.enbridge. com) continues to move ahead with the major reorganization it announced in December 2014.

The company plans to transfer some of its pipelines and wind farms to 19.9%-owned affiliate Enbridge Income Fund Holdings Inc. (Toronto symbol ENF). This company owns 42% of Enbridge Income Fund (Enbridge Inc. owns the remaining 58%), which holds a variety of businesses, including oil and gas pipelines and solar and wind farms.

Asset transfers like this, called drop-downs, free up cash the parent company can use for new projects. The affiliate also benefits because the new assets’ cash flow helps it maintain or raise its distributions to investors.

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TD BANK $51.38 (Toronto symbol TD; Shares outstanding: 1.8 billion; Market cap: $94.9 billion; TSINetwork Rating: Above Average; Dividend yield: 4.0%; www.td.com) is Canada’s largest bank, with $1.1 trillion of assets. It operates 1,305 branches in the U.S.—compared to 1,166 in Canada—and owns 41.01% of TD Ameritrade (New York symbol AMTD), a leading online brokerage.

Excluding one-time items, TD’s earnings per share rose 4.4% in its fiscal 2015 third quarter, which ended July 31, 2015, to $1.20 from $1.15. Revenue gained 6.6%, to $8.0 billion from $7.5 billion.

The bank’s Canadian and U.S. retail operations are profiting from stronger growth in both loans and deposits. Meanwhile, its focus on customer service and online banking is helping it attract and hold on to depositors. Lower gasoline prices also give consumers more cash to repay loans, cutting TD’s overall loan losses.

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Its niche in medical equipment testing has made Agilent Technologies one of our top U.S. growth stocks before and after its big spinoff.
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time share investment

In our experience, a time-share investment rarely provides you with any real advantage.


If you visit a vacation resort this winter, you may get invited to a complimentary dinner, cocktail party or other event. In return for the free drinks, food or entertainment, all you’ll have to do is sit through a pitch for an “investment” in a time-share. It may be worthwhile to attend, depending on what else you have to do. But in my experience, a time-share investment rarely provides you with any real advantage.

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Wise investors value dividends, but many investors don’t realize that company share buyback programs can be just as valuable as dividends, and in some cases, more so.