How to choose the best investments for children

How to choose the best investments for children

Traditionally, there have been several options for parents and grandparents looking to make investments for children. But here’s how to choose the best investments for children in 2019.
Taking the time to pick the right investments for children and grandchildren is a worthwhile endeavour. If the child is under… Read More

Finding the Best Energy Dividend Stocks for Your Portfolio

Finding the Best Energy Dividend Stocks for Your Portfolio

The energy industry can help provide a hedge against inflation, and top energy dividend stocks offer current income—as well as a history of success and modern technology for future growth.

Energy dividend stocks can play a role in your portfolio as a hedge against inflation, and… Read More

Q: Hello, Pat. Do you have an opinion on PIMCO Global Short Maturity Fund (Canada) ETF as a parking spot for cash in this rocky and volatile market. Any feedback is appreciated. Thanks.

A: The PIMCO Global Short Maturity Fund (Canada) ETF, $20.12, symbol PMNT on Toronto (Units outstanding: 3.2 million; Market cap: $64.32 million; www.pimco.ca) was recently launched by PIMCO.

Based in Newport, California, PIMCO is one of the world’s biggest fixed-income investment managers. It’s owned by Germany-based… Read More

Q: May I ask your opinion on ZWB (BMO Covered Call Canadian Banks) and HYGH (iShares Interest Rate Hedged High Yield Bond ETF)? In addition, does “covered call” offer any appreciable advantage over straight bank stocks or bank ETFs? And does the hedging of HYGH add risk or unpredictability versus the “straight” HYG? Thank you.

A: The BMO Covered Call Canadian Banks ETF, $18.62, symbol ZWB on Toronto (Units outstanding: 68.1 million; Market cap: $1.3 billion; www.bmo.com/gam), holds shares of Canada’s six largest banks (CIBC, TD Bank, Bank of Montreal, Bank of Nova Scotia, Royal Bank and National Bank) either… Read More

Q: Hi, Pat. I often hear in the financial news that this market is very expensive and it’s one of the longest running bull markets in history. I’m about four years from retirement. Does it make sense for people like me to build up a cash position, or do I continue to invest in stocks?

A: There are good reasons to stay out of the stock market, but approaching retirement isn’t one of them.

If you simply can’t accept any instability in the value of your holdings due to temperamental reasons, that alone is a good reason to sell your stocks,… Read More

Q: Hi, Pat. Regarding Newmont Mining, your “buy” recommendation is always tempered with “for investors who want to own a gold stock.” Can you explain why investors might want to own a gold stock, and the pros and cons of owning a gold stock?

A: We don’t see golds as an essential part of a sound portfolio, and, in fact, gold investing is a poor choice for most investors. For one thing, it involves considerably more guesswork than other aspects of investing.

The markets for widely traded goods like gold… Read More

Q: Dear Pat: Can you please explain how real return bonds work? Also, are they worth investing in, especially the iShares Canadian Real Return Bond Index ETF and the iShares Floating Rate Index ETF? Thanks.

A: Real-return bonds pay you a rate of return that’s adjusted for inflation.

Here’s how they work:

When a real-return bond is issued, the level of the consumer price index (CPI) on that date is applied to the bond. After that, both the principal and interest payments… Read More