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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 successful investing. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. Today’s tip: “Selling your stock market picks costs money, and that’s why successful investors do it as little as possible.” Investors often ask, “When should I sell my stocks? If I sell now, I’ll nail down big profits. But I’ll have to pay heavy capital gains taxes.”...

Members of Pat McKeough’s Inner Circle sometimes ask us whether a reverse mortgage would be a good way to tap into the equity they have built up in their homes. Reverse mortgages in Canada typically let homeowners who are 60 years of age or older borrow on their home equity (maximum 40% loan-to-value ratio). The loan and accumulated interest are repaid only if the house is sold or from the proceeds of the estate. Generally, the borrower will get between 28% and 33% of the value of their home, depending on their age and the location and type of home.

Think of reverse mortgages in Canada as loans of last resort

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BHP Billiton’s (symbol BHP on New York) $38.6-billion takeover bid for Potash Corp. (symbol POT on Toronto) has attracted a lot of investor attention to commodity investments lately.

In light of the takeover bid and other recent changes in this fast-moving sector, I’ve written a new free report. Click here to immediately download my new free report, Commodity Investments: Fertilizer Stocks and Potash Stocks That Will Profit from Rising Food Demand....

A number of our Inner Circle members have asked our opinion on global stock market investing in recent months, particularly companies that operate in fast-growing emerging markets. Some of these companies may not be well-known to North American investors. However, if it’s possible to invest in these stocks through North American markets, our team of independent investment experts is happy to look into them. We then share our research with all of our Inner Circle members, along with the original member’s question (of course, we eliminate any personal information). We reserve our specific buy/sell/hold advice for Inner Circle members, of course. But to give you an idea of the depth of our research, here are two recent examples of member questions about global stock market investing. One is about a Spanish telecommunications company that’s part of a joint venture to expand China’s wireless networks. The other is about a growing Philippine fast-food chain....

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 successful investing. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. Today’s tip: “Some of today’s best investments are in high tech. So are some of the worst.” Today’s fast-changing technology offers huge opportunities in technology stocks. However, fast change also brings danger....

Many Canadian firms have tried to expand into the U.S. over the years. Some, like Royal Bank of Canada (symbol RY on Toronto) have had difficulty in the United States. Other companies’ expansion efforts have failed miserably. Canadian Tire (symbol CTC.A on Toronto) provides a memorable example of a failed U.S. expansion. In 1982, the retailer bought a chain of Whites automotive-retail stores in Texas. By 1985, Canadian Tire had lost $300 million on this purchase. That’s when the company decided to sell the division and retreat to Canada. Its stock price has since gone up more than 360%. Canadian Tire is one of the stocks we cover in our Successful Investor newsletter.

This growth stock pick’s U.S. strategy builds on its Canadian roots

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Wheat prices have almost doubled, from a low of $4.25 per bushel on June 9 of this year to a recent high of $8.15. That’s mainly because Russia banned wheat exports to preserve its stockpiles in the face of a severe drought and widespread wildfires. Despite the jump, wheat is still well below its 2008 high of $13.34. Moreover, the U.S. and Europe expect to have large crops this year. And farmers are already planning to plant more wheat this fall to take advantage of high prices. That could lead to a glut of wheat next year. Wheat’s recent rise illustrates the cyclical and volatile nature of commodity prices. Still, agricultural prices should move higher in the long term, mainly because rising populations in developing countries will increase demand....

When building your stock portfolio, it’s crucial to follow our advice on downplaying stocks that seem to be near-universally recommended by brokers and are getting a lot of favourable media coverage. That’s because, in investing, familiarity can breed excessive feelings of comfort, security and performance.

(Downplaying stocks in the broker/public relations limelight is part of our three-part investing program....

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 successful investing. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. Today’s tip: “Home improvements raise home values less than you think.” Owning your primary residence can be a great financial deal. Mortgage payments amount to forced savings, a home is an inflation hedge, and capital gains are tax-free. But don’t fritter away your gains by excessive upgrading, or frequent moving....

Gold now trades at around $1,226.00 U.S. an ounce. That’s up 28.2% from $956 a year ago, but down from its all-time high of $1,261.00 U.S., where it closed on June 28, 2010. Gold’s recent gains have partly resulted from investor fears about the sovereign debts of European countries, especially Greece and Spain. That’s creating uncertainty about the strength of the euro. These fears are prompting more investors to buy gold and gold investments, because they believe investing in gold will provide them with additional security. We think gold could well move higher over the longer term, due to investor concern that low interest rates and large amounts of government stimulus spending will spur inflation. This could prompt even more investors to flock into gold —and drive prices up even higher....

Regardless of whether you follow an aggressive or conservative investing approach, we continue to recommend that you own shares of at least two of Canada’s big-five banks — Bank of Montreal, Royal Bank, CIBC, TD Bank and Bank of Nova Scotia. However, banks shouldn’t be the extent of your Canadian financial holdings. To increase your profits and cut your risk, it is also essential to diversify your holdings within each economic sector — including Canadian finance. Other types of financial investments, such as non-bank financial companies, should also play a role in your portfolio.

High-quality non-bank financials could be big winners in the ongoing recovery

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Ottawa’s new tax on income trusts comes into effect just over four months from now, on January 1, 2011. When it does, it will put trusts on an equal footing with regular corporations. Right now, income trusts pay out a high percentage of their cash flows to their unitholders. This lets them avoid paying corporate taxes. It also gives many of them significantly higher yields than a lot of dividend-paying common stocks. Many income trusts have already converted to conventional corporations in response to the new tax, or plan to do so later in 2010 or in early 2011. Others will continue to operate as trusts....

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 successfully investing your money. Each Investor Toolkit update gives you a fundamental tip and shows you how you can put it into practice right away. Today’s tip: “Starting a business is a gamble, but payoffs can be huge and planning cuts the risk.” Canadians can still get rich as employees — ask any Canadian bank president. However, high-paying jobs are hard to find. Most corporate structures are pyramid-shaped, with a few high-paying positions at the top and many lower-paying jobs down below. Moreover, because of the recession and continued high unemployment, more people than ever are vying for jobs — especially those that pay well....

The U.S. restaurant industry is highly competitive. Restaurant operators range from large chains, like McDonald’s and Burger King, to independent businesses and smaller chains, like Ruby Tuesday (symbol RT on New York). We cover Ruby Tuesday in Stock Pickers Digest, our newsletter for aggressive investing. (Ruby Tuesday has shot up 42% for us in the past year, and a continued economic rebound could help push this hot stock pick’s share price even higher. See below for more on the company’s future prospects.) Overall, the U.S. restaurant industry has faced tough challenges in the past two years. That’s because the economic downturn has prompted more consumers to eat at home, or to spend less when they dine out....

Apple Inc. (symbol AAPL on Nasdaq) continues to see strong sales of its iPad tablet computer: in April and May of 2010, the company sold 2 million of these devices. At this rate, Apple should sell many more iPads than the 6 million it was expected to sell in the first year. As well, Apple is now selling the iPad outside the U.S. That should further push up sales.

Dividend paying stocks that provide content offer lower-risk iPad profits

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Theme investing can pay off from time to time. Today’s popular investment themes include alternative energy, such as solar wind and geothermal, and emerging markets, such as China and India. However, theme investing can turn out badly for investors, especially those who get in late or forget about investment quality. The reason why is straightforward. When you indulge in theme investing, you allow a theme or concept to take a central place in your investing decisions. Usually the theme or concept includes some prediction about the future that has some truth in it, and will make noticeable changes in society. You may assume that if you can just get aboard that theme or find an investment whose future is tied up with it, you are bound to make money....

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 it into practice right away. Today’s tip: “Investment success depends more on the quality of your investments than on the price you paid for them.” When you start investing, you may think the secret to investment profit is “buy low, sell high.” But that’s hard to do. You’ll often buy just before prices fall, or sell just before they rise. If you stick to high-quality value stock picks, however, your short-term gains and losses can average out and you’ll still profit greatly in the long run. Here are nine factors to look for when judging a value stock pick’s investment quality....

Smartphones have become increasingly popular in recent years. Aside from functioning as mobile phones, these devices have many computer-like functions, including Internet access and email. There are a couple of ways for investors to profit from rising use of smartphones. The obvious approach is to buy shares of companies that make these devices. Apple and Research in Motion are the most dominant smartphone makers. However, other firms, such as Motorola, Palm and Garmin, have introduced new smartphones in recent months, as well. Another way to profit from rising use of smartphones and other wireless devices is by holding stocks of wireless carriers. Many of these firms have more revenue sources than smartphone makers. Aside from wireless operations, they may provide traditional phone, Internet and television services. This diversity lowers their reliance on a single device. In addition, they get continuing revenue from their customers. This cuts their risk....

With interest rates still near historic lows, borrowing money to invest continues to look like an attractive portfolio investing strategy.

Today, you can borrow for as little as 3.5% if you use your home as collateral. Over long periods, the total return on a well-diversified portfolio of high-quality stocks runs to as much as 10%, or around 7.5% after inflation....

Hidden value is one of the key factors we look for when we choose stocks to recommend in our newsletters and investment services, including Wall Street Stock Forecaster, our advisory that covers the U.S. stock markets. (In a recent Wall Street Stock Forecaster hotline, we updated our buy/sell/hold advice on a technology stock that uses one of our favourite hidden assets to maximum effect. Read on for further details.) By hidden value, we mean valuable assets that are not getting the attention they deserve from investors. When a company’s assets are wholly or partially hidden, the stock trades for less than it’s really worth, so you get to buy at a bargain price....

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 it into practice right away. Today’s tip: “Life-long dollar-cost averaging can increase your long-term retirement investing profits” Dollar-cost averaging involves investing equal amounts of money over a specific period ($200 a month, say). It’s a little like systematic saving, except that you put your money into stocks (or mutual funds) instead of a bank account....

The Canadian consumer sector is highly competitive. Aside from other domestic retailers, Canadian retailers face rising competition from large U.S. discount retailers, like Wal-Mart and Costco. As well, consumer stocks are more exposed to swings in the overall economy than companies in some other sectors, such as utilities. That’s especially true when you indulge in aggressive investing in consumer stocks and buy small retailers. They tend to be less well-established than larger companies, such as Canadian Tire. However, aggressive investing in consumer stocks also holds the potential for spectacular gains. (In a just-published issue of Stock Pickers Digest, our newsletter for aggressive investing, we update our buy/sell/hold advice on a retailer that has risen 36% for us in the past year — and could go even higher. Read on for further details.)...

Here are three easy-to-avoid errors that most investors make when investing money in the stock market. All three can seriously hinder your portfolio’s long-term results. 1. Taking an overly optimistic view of speculative investments: Some investors generally put too high a value on speculative ventures. They want to believe that innovations will succeed, and that they’ll get a fair chance to profit from investing money in these companies. Their innate politeness stops them from asking tough questions of smooth-talking promoters. Excess optimism plus a shortage of information leads them to pay too much. That’s why we focus on well-established companies rather than start-ups, even in Stock Pickers Digest, our advisory for investing money in aggressive stocks. Most of our Stock Pickers Digest buys are far better established than your average penny stock....

The price of uranium rose steadily from $7.10 U.S. a pound in December 2000 to as high as $138 U.S. a pound in June 2007. Prices have moved down from that speculative high to today’s price of about $40.00 a pound. But conditions look favourable for higher long-term uranium demand.

Risks and rewards of Canadian uranium stocks

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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 how you can put it into practice right away. Today’s tip: “It pays to stay aware of market risk, but don’t let it become an obsession.” As we saw in the past few years, stock prices do sometimes reach a market peak or “top,” then go into a deep slump that lasts a year or two, or even longer. However, some investors and advisors make a career out of analyzing past market tops and the declines that followed. These “top-stalkers” always seem to think the next such decline is just around the corner. Here are three common top-stalker categories:...