How To Invest

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.

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ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $44.50 (New York Exchange symbol ECH; buy or sell through brokers) is an ETF that aims to track the MSCI Chile Investable Market Index, which consists of stocks that mainly trade on the Santiago Stock Exchange.

The fund’s top holdings are S.A.C.I. Falabella (retail), 9.6%; Enersis SA (electricity), 9.2%; Empresas Copec SA (conglomerate), 7.9%; Empresa Nacional de Electricidad (electricity), 6.7%; LATAM Airlines, 5.5%; Cencosud SA (retailer), 4.9%; Empresas CMPC (pulp and paper), 4.8%; Banco de Chile, 4.6%; Banco Santander Chile (banking), 4.5%; and Quimica y Minera de Chile (mining), 4.1%.

The fund’s industry breakdown is: Utilities, 25.1%; Financials, 17.8%; Consumer Discretionary, 13.2%; Materials, 12.9%; Consumer Staples, 10.0%; Industrials, 8.1%; Energy, 7.8%; Telecommunications, 2.4%; and Information Technology, 1.9%.

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ISHARES MSCI GERMANY FUND $29.36 (New York Exchange symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index. This index aims to replicate 85% of the German stock market’s market capitalization. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.

The ETF’s top holdings are Bayer (diversified chemicals), 9.3%; Siemens (engineering conglomerate), 8.4%; BASF (chemicals), 8.0%; Daimler (autos), 6.6%; Allianz (insurance), 6.6%; SAP (software), 6.0%; Deutsche Telekom, 4.0%; BMW, 3.3%; and Volkswagen AG, 3.1%.

The fund’s industry breakdown includes: Consumer Discretionary, 21.7%; Financials, 16.1%, Materials, 14.6%; Industrials, 13.7%; Information Technology, 7.0%; Utilities, 4.9%; Telecommunication Services, 4.4%; Health Care, 4.1%; and Consumer Staples, 3.8%.

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ISHARES MSCI SOUTH KOREA INDEX FUND $65.24 (New York Exchange symbol EWY; buy or sell through brokers) aims to track the MSCI Korea Index.

The ETF’s top holdings are Samsung Electronics, 18.6%; Hyundai Motor Co., 5.5%; SK Hynix Semiconductor, 3.9%; Posco (steel), 3.4%; Naver (Internet content), 3.3%; Shinhan Financial, 3.2%; Hyundai Mobis (auto parts), 3.0%; Kia Motors, 2.5%; KB Financial, 2.3%; and LG Chemical, 2.0%.

The fund’s industry breakdown is as follows: Information Technology, 33.1%; Consumer Discretionary, 19.5%; Financials, 14.1%; Industrials, 12.7%; Materials, 9.1%; Consumer Staples, 5.7%; Energy, 1.9%; Utilities, 1.8%; Telecommunication Services, 1.1%; and Health Care, 0.8%.

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ISHARES MSCI EMERGING MARKETS INDEX FUND $45.58 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index.

Its geographic breakdown includes China, 17.6%; South Korea, 16.0%; Taiwan, 11.9%; Brazil, 11.3%; South Africa, 7.8%; India, 6.7%; Russia, 4.7%; Mexico, 4.7%; Malaysia, 3.9%; and Indonesia, 2.7%.

The fund’s top holdings are Samsung Electronics (South Korea), 3.2%; Taiwan Semiconductor (computer chips), 2.4%; Tencent Holdings (China: Internet), 2.0%; China Mobile, 1.7%; China Construction Bank, 1.3%; Naspers (South Africa: media and Internet), 1.2%; Industrial & Commercial Bank of China, 1.2%; Itau Unibanco Holding (Brazil: banking), 1.2%; and Gazprom (Russia: gas utility), 1.0%.

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ISHARES MSCI JAPAN INDEX FUND $11.93 (New York Exchange symbol EWJ; buy or sell through brokers; us.ishares.com) is an ETF that tries to match the return of the Morgan Stanley Capital International (MSCI) Japan index.

The fund’s top holdings include Toyota, 5.8%; Mitsubishi UFJ Financial, 2.8%; Softbank Corp., 2.4%; Honda Motor, 2.0%; Sumitomo Mitsui Financial, 1.9%; Mizuho Financial Group, 1.6%; Japan Tobacco, 1.4%; Hitachi, 1.4%; Canon, 1.4%; and Takeda Pharmaceutical, 1.3%.

The fund’s industry breakdown includes: Consumer Discretionary, 20.5%; Financials, 20.1%; Industrials, 19.9%; Information Technology, 10.9%; Consumer Staples, 6.8%; Health Care, 6.2%; Materials, 5.7%; Telecommunication Services, 5.6%; Utilities, 2.4%; and Energy, 1.3%.

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PENGROWTH ENERGY $6.70 (Toronto symbol PGF; Shares outstanding: 527.5 million; Market cap: $3.6 billion; TSINetwork Rating: Average; Divd. yield: 7.2%; www.pengrowth.com) plans to build a 15-kilometre pipeline to pump diluted bitumen from its new Lindbergh oil sands project in Alberta. The new line will connect to a larger one operated by Husky Energy.

The company will spend $20 million on this pipeline, which will make it easier for Pengrowth to sell Lindbergh’s oil to customers in Canada and the U.S. when the project starts up next year.

Lindbergh will add 12,500 barrels to Pengrowth’s overall daily production, which totalled 73,823 barrels in the latest quarter.

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ENERPLUS CORP. $23.21 (Toronto symbol ERF; Shares outstanding: 204.2 million; Market cap: $4.9 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.7%) produces an average of 94,167 barrels of oil equivalent a day (59% gas and 41% oil).

The company’s properties are mainly in Alberta, Saskatchewan, B.C., North Dakota and Montana, as well as the Marcellus shale, which passes through Pennsylvania, New York, Ohio and West Virginia.

In the three months ended June 30, 2014, Enerplus’s production rose 15.5% from a year earlier. However, cash flow per share increased just 2.0%, to $1.04 from $1.02, as it realized lower prices for its Marcellus shale gas.

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Stock Investing
Every Tuesday we bring you “Best Canadian Stocks.” You get our specific recommendation on the stocks we profile, with a full explanation of how we arrived at our opinion. You’ll read about stocks making moves you should know about, from coverage in one of our three newsletters featuring Canadian stocks—The Successful Investor, Stock Pickers Digest and Canadian Wealth Advisor. WESTJET AIRLINES (Toronto symbol WJA; www.westjet.com) serves 90 destinations in North America, Central America, the Caribbean and Europe. Its fleet of 107 modern Boeing 737s are 30% more fuel efficient than older jets. In June 2013, the company launched WestJet Encore, its Canadian regional airline. This business now operates 13 Bombardier Q400 NextGen turboprop planes, which seat 78 passengers....
CRESCENT POINT ENERGY CORP. $43.17 (Toronto symbol CPG; Shares outstanding: 398.1 million; Market cap: $17.7 billion; TSINetwork Rating: Extra Risk; Dividend yield: 6.4%; www.crescentpointenergy.com) produces oil and natural gas in Western Canada, with a focus on its Bakken light oil development in southeastern Saskatchewan. Its output is 91% oil and 9% gas.

In the three months ended June 30, 2014, Crescent Point’s cash flow rose 26.2%, to $636.7 million from $504.4 million a year earlier.

The company increased its output by 16.7%, to 137,368 barrels of oil equivalent from 117,799. That, plus higher oil and gas prices, was the main reason for the higher cash flow. Cash flow per share rose at a slower rate of 18.3%, to $1.55 from $1.31, because Crescent Point issued shares to pay for acquisitions.

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MANULIFE FINANCIAL $22.36 (Toronto symbol MFC; Shares outstanding: 1.9 billion; Market cap: $41.2 billion; TSINetwork Rating: Above Average; Dividend yield: 2.8%; www.manulife.ca) sells insurance, mutual funds and wealth management services. The company operates globally and has $637 billion of assets under management.

The company has just announced strong quarterly results and a 19.2% dividend increase, to $0.155 a share from $0.13. The stock yields 2.8%.

This is the first hike since Manulife cut its payout by 50% in 2009 to preserve capital after 2008’s stock market declines.

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